www.shaproperty.com

WITH the limited number of large landed properties and new luxury
apartments available for lease, rents of private residential properties
have increased across the board, according to property consultancy
Savills Singapore.

Only 410 new apartments in the prime areas of district 10 and 11 became
available in the first quarter of the year, Savills says. This scarcity
of apartments and landed properties, coupled with the increase in the
number of in-bound expatriates, has moved rent upwards.

Citing Urban Redevelopment Authority figures, Savills says there has
been a one per cent rise in the overall rental index, up from the
previous quarter's 0.6 per cent.

Savills notes that while the first quarter is a traditionally low
season
in leasing transactions, this year's first quarter registered the
highest level of leasing transactions since 2001 - with 7,599 cases.

But the sector with the highest growth potential are bigger units. This
is driven by the gradual influx of expatriates to Singapore, Savills
reckons. Most favour the mid- to luxury range and larger compounds.
Others want residences with better furnishings, gardens and open
spaces.
And with the small number of detached and semi-detached properties
available, Savills figures that expatriates would choose to rent new
condominium developments with full recreational facilities.

Landlords with apartments in excess of 2,500 sq ft have benefited.
Savills observes that apartments of that size have been particularly
popular and can command higher rents.

Savills thinks rental for the private residential market could remain
high for the rest of the year. Selected types of units, such as
newly-developed condos and landed properties with large areas, could
also enjoy high demand and command good rents.

Savills predicts that rents for luxury properties will rise by more
than
8 to 10 per cent, while the overall market grows 4 to 6 per cent this
year.