More risks to apartment sector
Apartment operators are suffering from competition, introduced by a higher number of condominium units available for rents, said TMB Analytics.
The research house said that low interest rates have driven condominium purchases and some of these have been rented out.
"Low interest rates are lowering the monthly installments to the levels close to apartment rents. This encourages many consumers to buy condominium units rather than lease and pay rents for apartment units," it said.
Of total real estate loans, condominium purchase loans account for 13 per cent, relatively close to 12 per cent to apartments (including serviced apartments).