"Private home rents rose 26% to 29% this year and will rise 13% to 16% next year; HDB rents rose 26% to 28% this year and are expected to rise 15% to 18% next year"
In other words, this year and next year combined, local rent prices in Singapore will rise by an average of 45 percent.
Analysts said the last time there was such a rise was in 2007, that is, before the global financial turmoil.
Private rents in Singapore rose for the 21st consecutive month, with private home prices rising 3.3 percent in September from a year earlier, and the number of units rented out also rose 9.8 percent from a year earlier to 4,760.
The rising private rentals reflect the strong local demand for private housing, which is expected to grow by 25-30% for the whole year!
The Singapore 2022 private rental market is growing spectacularly, with cumulative rental growth reaching 20.8 percent in the first nine months of this year, greater than the cumulative rental growth of 11.4 percent over the past four years.
Experts say: "The government has very little to do in terms of cooling the private rental market. They are unable to effectively curb demand or enforce rent controls. Coupled with the fact that landlords will pass on the extra costs to tenants as interest rates continue to rise and excise and property tax increases next year, rents are expected to rise even further."
Industry professionals expect, "The rental market will continue to be dominated by homeowners in 2022, with residential rents estimated to rise another 10 percent in the fourth quarter. The upward trend in rents will continue even further into next year after the cooling measures are introduced!" .
As for why rental prices will continue to rise, analysts believe it is mainly because of three things.
① Non-resident employees return to the local workplace
② The new coronary disease epidemic has caused delays in the pre-purchase of HDB flats
③ After private homeowners sell their homes, they have to wait for 15 months before they can buy resale HDB flats, so they have to rent a house to live in first, and these are the reasons why it is hard to find a house in the rental market.
Experts also believe that the main reason for the rise in rents is the increase in the number of foreigners coming to Singapore for employment.
With the reopening of our borders and the tight job market, more foreigners have been attracted to come and work and settle locally.
And the limited supply of housing will make tenants have to pay higher rents, even for older or less accessible properties, landlords will be able to get a good rental return.
According to local analysts, at least three waves of people have come to Singapore since the border reopened.
① Foreigners who came to Singapore for tourism, to visit relatives, or to study or work.
② Singapore citizens/permanent residents who were working overseas during the epidemic also tend to return to Singapore.
③ Company members who have followed the company due to the relocation of its headquarters to Singapore
If in the past two years, Singapore was worried that no one was coming because of the restrictions of the epidemic.
Well now the situation has become that more people are coming to Singapore to stimulate the growth of the rental economy, with less rooms and more people competing.
According to a study by SRX, a local property website in Singapore, overall HDB rents in Singapore have risen for 26 consecutive months, and private home rents have risen for 20 consecutive months.
