Variations in Rent Price over the year?

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  1. #1

    Join Date
    May 2008
    Location
    North Point
    Posts
    203

    Variations in Rent Price over the year?

    We are planning to move from our current apartment in the near future. We've been told by many people that the rent prices, and how much negotiation room on price you have with the landlord varies across the year, with December being the best. Since everyone wants their places rented by the end of the year, they're more apt to give a good discount.

    1. Have others seen this to be the case?
    2. If so, how much variation is there?- we could make the move in December, but we could also save ourself the trouble, and move over the summer (our landlord has offered a discount on our rent if we stay till the end of the summer)
    Is it worth it to move in December to get the good deals? or is the variation so small that we'll be fine waiting till summer.

    3. I know it's crystal ball stuff, but any opinions on whether the current real estate rebound will dive again? seems like it came back too fast!

    Thanks for the advice!


  2. #2

    Join Date
    Jun 2005
    Location
    Hong Kong
    Posts
    23,205

    I think it depends on the segment of the market to some extent. Amongst the sort of places which rent to "expats with kids and employers who don't know better" packages which stretch to high end ($50K+) places then the high turnover seems to be in the summer, which certainly means more availability then, but perhaps means less room to negotiate on price since more people are looking.

    At the lower ranges I'm not sure there's much seasonal variation frankly - certainly not enough to override a decision to move if you find a place that is absolutely right for what you want.

    For the general trend, my impression is that rents, in the lower and mid ranges at least are still depressed relative to purchase prices. My expectation is that as soon as there is any hint that interest rates will start to rise then rents will start to go up, so if I were renting my inclination would be to get a longish lease locked in fairly soon now.


  3. #3

    This might be true about December. I have heard estate agents talk about a "Christmas Special" in one building where many flats are owned by one company, 40-60K range. In the case of this building, I think the discount is about 5-10% and applies to less desirable units.