Leases grow as market slides
The residential leasing market has recorded an increase in supply, with many investors opting to lease out their apartments in anticipation of a rebound in property prices later this year, property consultant Vigers says.
As a result of the increase, residential rents eased about 5 per cent in the fourth quarter last year compared with the same period a year earlier, the company said in its fourth-quarter property market review.
Home prices have fallen by 20 per cent to 30 per cent since the Asian currency crisis started last year.
Office rent in prime locations, which rose 5-7 per cent earlier last year, had stabilised due to the large amount of new premises coming on stream over the next couple of years.
Vigers said the leasing market in Central would remain stable, due to the shortage of quality supply.
Rents in all other areas would continue to come under pressure.
