Rents on luxury property to slip 5%

Average monthly gross rents of luxury and super-luxury homes are expected to drop by up to five percent this year, according to Colliers International.

This could be due to heightened competition for tenants in completed and upcoming projects, which could put some downward pressure on rents.

Meanwhile, developers who acquired land at high prices are not expected to significantly slash pricing due to low profit margins.

“In light of the revised forecast tally which remains healthy, the above factors are expected to still provide support for prices of newly launched homes,” said Colliers International.

“Taking into account the possible effects on the secondary market as well, overall private residential home prices are expected to flat line with marginal downsides if any, apparent nearer the end of the year.”

Source – PropertyGuru – 25 Jul 2013

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