Singapore private residential rents up despite lower vacancies, and more news

For PropertyGuru’s real estate news roundup, the leasing volume of Singapore’s private residential units has increased by 3.1 percent every year. In other bulletins, with the number of new home constructions in Victoria, Australia down to a decade low, the Victorian Government is considering modernising its property taxation strategy. And finally, if the real estate market prices increase by more than 20 percent in three months, the state will regulate Vietnam’s property market.

Singapore private residential rents up, vacancy down – Savills

Savills Research shares in RETalk Asia that the leasing volume of private residential units has increased by 3.1 percent yearly. Quarterly, the private residential leasing volume has increased further by 1.7 percent in Q2, following a 5 percent rise in Q1.

The increase was observed in the non-landed property segment which rose by 1.9 percent quarter-on-quarter (QoQ). Rental transactions are seen to expand in the Core Central Region (CCR) and the Rest of Central Region (RCR), with increases of 3.3 percent and 3.2 percent QoQ, respectively.

Interestingly, the growth in these two market segments is mostly driven by a higher demand for one- and two-bedroom units from tenants who were priced out of these market segments over the past few years and had moved to either HDB or co-living premises. Leasing volume of one- and two-bedroom units in the CCR rose by 14.2 percent and 7.0 percent QoQ, respectively. In the RCR, rental contracts for one- and two-bedroom units expanded by 5.2 percent and 7.6 percent QoQ respectively.

Victoria’s housing crisis: Tax reforms crucial to achieving new home target

With recent Australian Bureau of Statistics (ABS) figures showing the number of new home constructions in Victoria has slumped to a decade low, the Real Estate Institute of Victoria (REIV) is again urging the Victorian Government to consider modernising its property taxation strategy.

Despite the Government’s ambition to increase new home builds to 80,000 new homes per year, ABS figures show only 55,653 homes were completed in the past twelve months, 2698 less than the previous year.

The REIV asserted that the current property taxes serve as a disincentive to investors and will likely hinder achieving the goal of 80,000 new homes per year. The Victorian Government must look to implement measures to attract investors to Victoria’s property sector.

Kelly Ryan, CEO of REIV says the ABS data is concerning and the REIV is again calling for the Victorian Government to align its housing objectives with its taxation policies. “We’ve got a great opportunity to build 800,000 new residential properties in the coming decade to ease our housing crisis. However, the latest ABS results highlight the importance of innovative and progressive thinking necessary to achieving this goal,” she said in The Real Estate Conversation.

State will regulate Vietnam’s property market if prices increase by 20 percent

If prices in the real estate market increase by more than 20 percent for three months, ministries and branches managing the property market have to propose measures to regulate the market. Intervention in response to increases in the real estate transaction price index is one of the important contents of Decree 96/2024/ND-CP (Decree 96), effective from 1st August, VietnamPlus reports.

Accordingly, the Ministry of Construction (MOC) will assess the real estate market situation and propose measures to regulate the market, based on the Government’s direction or the price index, real estate transaction volume index, economic and social indicators and statistics of other sectors relating to the real estate market.

The decree states that the State will also regulate the property market when the market fluctuates and threatens socio-economic stability.

The Property Report editors wrote this article. For more information, email: [email protected].