In March 2020, there has been a sudden surge in demand which is seen in the private rental market. There has been a 10.9 per cent jump in units leased, an increment of 514 units in total comparing from February to March
Market observers saying measures taken in response to the coronavirus pandemic were the likely cause.
From y-o-y comparison, the rental volume for March is 7.6 per cent higher than the five-year average volume for the month but was 5.9 per cent lower than the same month a year ago
Meanwhile, HDB rental market also see an increment by 288units which is 15.4 per cent increment comparing from February to March. Comparing y-o-y for March, leasing the seems to be a drop in HDB rental volumes by 11.3 per cent. They were also 4.7 per cent lower than the five-year average volume for the month.
There’s a few factors for the rental volume increment.
- Established residents may have preferred to extend their leases, because they were hesitant to look for new housing, to reduce their risk of catching the virus, whilst some returning from abroad would have wanted a place to finish their stay-home notice.
- As Malaysia imposes their locked down, it seems like Malaysian who are working here scrambled to rent a unit before the lockdown was imposed in their country or even before Circuit Breaker starts.
At this moment, data has shown that some owners are taking advantage of this situation to make that extra dollar as we’ve been seeing people are losing income this month. Fret not, there’s also kind owners out that are doing their part to help out in this season where they offered concessions or incentives to support their tenants whose livelihoods were threatened by COVID-19
Unlike private residences, last month, HDB residences saw no rise in rentals. Alternatively, they slipped 0.5 per cent a month. This may be attributed to a rise in the availability of HDB apartments available for leasing after the MOP, which would offset the rising short-term demand for rental units.
If the COVID-19 cases continue to spike-like it has on these past few days due to the foreign worker living quarters cases, there might be a temporary pullback in foreign employment, and this will hurt the rental market.
Let’s do our part by staying at home to fight the pandemic now or worst to worst our rental market will be seeing a drop for the whole year.