RICS residential lettings survey 2009
HONG KONG, June 25 /PRNewswire-Asia/ -- Rents dropped across the residential lettings sector but rental expectations suggest the trend is set to moderate, says the RICS Lettings Survey published recently.
In the three months to April, 55 percent more Chartered Surveyors reported a fall in rents than a rise, which is the most negative reading in the series' history (1999). The change has been most marked in Scotland where 80 percent more Chartered Surveyors reported a fall than a rise in rents. Meanwhile in London, the rental market for houses continued to favour tenants. A net 85 percent of surveyors reported a fall than a rise in rents for houses in London down from 71 percent. Significantly, surveyors are reporting that gross property yields are now falling for the first time since April 2007, indicating that rents are declining at a more rapid pace than house prices.
Mr. David Faulkner, Vice Chairman of RICS Hong Kong commented, "The RICS survey reflects the generally weak demand from the corporate rental sector in the major global financial centres. Whilst there is limited new supply the rental downturn is expected to continue until we see an upturn in demand from the financial services sector."
Looking forward, the picture looks a little more encouraging for landlords. Rental expectations, though still negative, have improved markedly. The net balance of -25 percent anticipating further rental declines compares with the previous reading of -41 percent.
An interesting development in the latest survey is the increased willingness of landlords to consider selling their property at the expiry of a tenant lease. This has edged back up to 1.8% having fallen to just 0.2% in the three months to January.
Tenant demand for rental property continued to increase, albeit at a slower pace. 16 percent more surveyors reported a rise in new tenant lettings than a fall, compared to 42 percent in the three months to January. The net balances of surveyors reporting new instructions to let both flats and houses (an indicator of supply) are still rising but the pace has started to slow. 17 percent and 12 percent more Chartered Surveyors reported a rise than a fall in new instructions to let flats and houses respectively, down from 44 percent and 49 percent.
About RICS & RICS Asia
RICS (Royal Institution of Chartered Surveyors) is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity - providing impartial, authoritative advice on key issues affecting businesses and society.
RICS is the worlds' leading qualification when it comes to professional standards in land, property and construction. With over 140,000 members globally, RICS represents, regulates and promotes the work of property professionals throughout 146 countries.
The RICS Asia supports a network of over 11,000 individual professionals across the Asia region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.
The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam.
Media enquiry, please contact:
RICS Asia Public Relations Representative
Ms Belinda Chan / Ms Kate Kwan
Tel: +852-2372-0090
Fax: +852-2372-0490
Mobile: +852-9379-3045 / +852-9077-1337
Email: belinda@creativegp.com / kate@creativegp.com