Wednesday, July 9, 2008

Residential Rents In S'pore Peaking

Source : The Straits Times, July 9, 2008

THE soaring rents in prime locations that drove many expats to downgrade in the past year seems to be easing, with some condominiums seeing a fall of up to 12 per cent.

The rental slides are expected to intensify over the next three to six months, reversing a trend that saw some rents double or triple during the property peak last year.

Consultant Jones Lang LaSalle said increased supply from newly built condominiums and a weakening economy are pushing rents in choice locations down although rents in other parts of Singapore should stay stable.

Expats have also been voting with their feet and abandoning pricey prime areas and moving to fringe locations - and nudging rents there up a little in the process.

Rents in the East Coast area, for example, rose 1.4 per cent in the first quarter but are now tipped to grow at a slower pace or even stay stable.

This is in contrast to prime areas, where landlords are feeling the chill of the new economic headwinds.

Read the full story in Thursday's edition of The Straits Times.

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