Savills expects redundancies to arise in the coming months as businesses rely on government grants to keep themselves afloat
Property agents believe that the home rental market will face a rough fourth quarter as a commonly low season coincide with what is now the worst recession in decades, reported the South China Morning Post.
Savills added that redundancies will occur in the coming six months, which will have clear ramifications on the local housing demand, as several businesses still depend on government funding to tread the waters.
Thus far, the senior director of research and consultancy at Savills Simon Smith revealed that “the rental market still seems precariously balanced as tenants and landlords face uncertain prospects. We expect the final quarter of 2020 to present further challenges.”
In the data published by the government’s Rating and Valuation Department, the rental index dropped by 9.2 percent from its peak in 2019. It also indicated that the monthly rents for apartments have been steadily declining.
To increase demand, landlords have been providing incentives aside from rent reductions.
“Landlords and tenants are learning to navigate the current uncertainty with one-year leases, early handovers and rent-free periods,” said the head of residential services at Savills Aradhana Khemaney. “The fourth quarter is likely to see more challenges and we expect rents to soften further.”
Moreover, Knight Frank said that they have witnessed more landlords who are inclined to offer incentives to draw in more tenants instead of reducing asking rent.
“Prices will still be under pressure because of protracted unfavourable factors, including the weak economy and rising unemployment rate, which might erode affordability over time,” shared the associate director of research and consultancy in Greater China at Knight Frank Martin Wong.
Fortunately, the overall property sector has started to regain its momentum, according to property agency Midland Realty. They predict the total property transaction volume, including homes, retail, parking spaces, commercial and industrial properties to reach 6,500 in September, a 20.6 percent increase from August.
10th PropertyGuru Asia Property Awards (Singapore) gala livestream
Premier developers, developments and designs to be honoured virtually, providing access to limitless viewers from across the globe
Cleantech titan shares smart ways to reduce energy consumption
Hasan Basri Tosun, CEO of award-winning cleantech firm Sensgreen, is winning friends in influential places. Find out how
Robert Greg Shand’s sustainable designs reimagine Singapore’s future, celebrates its past
Greg Shand has left his mark on numerous high-profile projects in Singapore, ranging from a landmark community centre to plush residential villas
Proptech pioneers turn industry pain points into potential, easing Asia’s transformation
Disruption is revolutionising the property industry. These four proptech visionaries are among those renovating the face of real estate in Asia
Man of the hour: A chat with the father of Lan Kwai Fong
Dr. Allan Zeman shares his views on the future of Hong Kong and urban development around Asia
6 of the finest places to live, dine, party and shop in Cebu
With top-notch dining and nightlife burnishing a real estate renaissance, the capital of the southern Philippines is having a moment in the sun