Search Articles

in

Recommended For You

Schroder, Lloyd's Asia, Twitter sign up at CapitaGreen
Schroder, Lloyd's Asia, Twitter sign up at CapitaGreen

The Business Times -
01 Jan 2015

Ace Insurance has also signed up for about two floors or 38,000 sq ...


Economy grew 2.8% in 2014: PM Lee
Economy grew 2.8% in 2014: PM Lee

The Business Times -
01 Jan 2015

But productivity fell 0.5 per cent in first nine months; country ne...


For six in 10 HDB owners, home is still their first flat
For six in 10 HDB owners, home is still their first flat

The Straits Times -
01 Jan 2015

Khaw Boon Wan promises to make all HDB towns endearing estates



Latest Related Ads

d'Leedon (Former Farrer Court)
d'Leedon (Former Farrer Court) (D10) Condominium, For Sale

D'Leedon (Former Farrer
Court) District 10 New
M


269A COMPASSVALE LINK
4-Room HDB 269A COMPASSVALE LINK, For Sale

5 MINS TO MRT!!! MUST
SELL NOW!!! ~ 4RM |
2


607 HOUGANG AVENUE 4
4-Room HDB 607 HOUGANG AVENUE 4, For Sale

MUST SELL SOON!!! 4S
model Blk 607 Hougang
ave 4



Featured Videos

Newsletter

Subscribe to receive the hottest news & property trends, updates on popular properties and promotions from STProperty & our partners

Singapore Property News

Rental yields steady in April

Demand seen in short term but sustained health will depend on economy, say experts

The Straits Times - May 10, 2012
By: Esther Teo

| More
Rental yields steady in April

INVESTORS worried that the return on their residential investment properties might have taken a tumble can relax.

Rental yields held their ground last month as falling prices in the city centre and city fringe region and sustained rental demand propped up these returns.

Data from the Singapore Real Estate Exchange (SRX) found that overall yields for private non-landed homes was 4.06 per cent last month, easing slightly from the 4.23 per cent in the fourth quarter.

SRX calculated the yield by dividing the average per square foot rent over 12 months by the average psf price of units sold last month.

Suburban homes posted the best yields of 4.02 per cent, city fringe homes pulled in 4 per cent while city centre homes had the lowest yields of just 3.24 per cent.

A total of 2,174 leases were inked in April by agencies under SRX, which collates and displays transactions by major property agencies, accounting for about 85 per cent of resale transactions in the market.

Experts say yields are expected to hold at current levels in the short term. However, the sustained health of the rental market will depend on where the economy is headed, they add.

C&H Properties key executive officer Albert Lu said that the slight dip in rental yields last month does not indicate any sustained downward trend.

But if the global economy should take a sharp turn for the worse, leading to foreign workers leaving Singapore, then rental demand, and hence yields, could be aversely affected, he added.

Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group, thinks that yields in suburban areas could be compressed due to the upcoming supply of completed homes, even as home prices hold steady.

However, it is the opposite scenario in the city centre and city finge areas where yields may have risen as prices fall.

Data from the Urban Redevelopment Authority showed home prices falling 0.6 per cent for both the city centre and city fringe areas in the first three months of the year.

Mr Tan Kok Keong, OrangeTee's research and consultancy head, however, thinks that with the occupancy rate of suburban homes at more than 95 per cent, yields are likely to hold firm.

Rather, it is the yields of city centre homes that might be compressed as occupancy rates have been coming down in those areas, putting pressure on rents. This will, however, be a small drop since prices are also softening.

'Rental yields will likely remain around this level. Until we see a larger scale expansion in the finance sector, it's hard to see yields creeping up,' he added.

Mr Tan said the rental market might face a challenging period from the second half of 2013 onwards when a bumper supply of public and private homes starts flooding the market.

| More

Inoculating Against an Increase in your Mortgage Payment

Inoculating Against an Increase in your Mortgage Payment

The Straits Times - 22 Jan 2015

China’s economy slows, hitting a 24-year low. Europe’s economies struggle with disinflation and possibly deflation. Analysts predict that the US dollar will continue to strengthen in 2015.

View articles from these categories

X

1 Canberra receives more than 600 e-applications

The Straits Times - May 10, 2012

By: Gan Yu Jia