DAILY MARKET UPDATES 4th August 2008

HDB rents still well on the rise
HDB rents continued their steady rise in the second quarter as demand arrives from expats on smaller housing allowances and those priced out of condo market. Average monthly rents of four-room flats climbed almost 10% to $1,750, from $1,600 in the previous three months. Bukit Batok, Central, Serangoon and Hougang saw major rent rises across all flat types. In Q2, 8 out of every 10 towns saw higher rents for four-room flats, with Jurong East experiencing jumps of up to 21%. Among the priciest place to rent a four-room flat are flats in the Central area and Bishan, which command $2,000 or more. Monthly rents of three-room and five-room flats went up by $100 on average to $1,500 and $1,900 respectively. For five-room flats, Bukit Timah, Jurong West and Hougang were especially in demand. But the most expensive five-room flats are still in Marine Parade and Central, where they go for $2,550 and $2,400 a month, respectively. Rentals for HDB flats are likely to hold steady or even rise for the rest of the year as they remain much more affordable than condos, predicted Dennis Wee Properties.

- The Sunday Times, P24

¯ ST Index weekly change 2,906.07 (-16.84)
SIBOR (3 mths): 1.01042 (S$)
SWAP (3 mths): 1.02732 (S$)