Suburban condominiums in Singapore are seeing a decline in rental prices such that it is now comparable to rental prices of executive HDB units.
For example, in February 2016, the rental prices for condos in the Outside Central Region (OCR) decreased by 0.4%, while the rental prices for HDB executive flats fell by a slight 0.1% in March 2016, according to SRX Property. Upcoming new launch condo include Seaside Residences , Grandeur Park Residences, Hougang EC, Yio Chu Kang EC, Hoi Hup EC while existing ones include Kingsford Waterbay, Forest Woods and Straits Mansions, Sturdee Residences and Gem Residences. Grandeur Park Residences showflatwill be available soon.
The larger decline in rental prices for suburban condos and the stagnant rental prices for executive flats, have caused the price gap to narrow between them.
However, this smaller gap in rental prices is not all that meets the eye because the sizes of the condos have not been taken into account.
When the sizes of the condos come into play, the decline in rental prices recorded could be because tenants are going for smaller units that naturally have lower rental prices.
Other than the shrinking sizes for condos, the reduction in housing allowance for expats can also explain why tenants are going for condos with lower rental prices.
With an almost level playing field between private properties in suburban areas and HDB units, people who wish to rent HDBs because of their lower rent, now also have the option of renting condos.