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Singapore
Rents to rise by 45% on average
Nov 26, 2022
Singapore
By   Internet
  • City News
  • Rent
  • Rent Trends
  • Rental Market
Abstract: Private rents in Singapore have risen for 21 consecutive months and are expected to increase by 25 to 30 percent for the year as a whole, while local rents in Singapore will rise by another 15 percent or so next year, according to analyst estimates.

Combined for the year and next year, Singapore rent prices will rise by an average of 45%.

 

The Singapore 2022 private rental market is growing spectacularly, with cumulative rental growth of 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.

 

Industry professionals expect: "The rental market in 2022 will continue to be dominated by homeowners, with residential rents estimated to rise by 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!" .

 

Experts said: "The government can take very few measures to cool down the private rental market. They are unable to effectively curb demand or impose rent controls. Plus, with rising interest rates and next year's GST and property tax hikes, landlords will pass on the extra costs to tenants, and rents are expected to rise even further."

 

As to why rental prices will continue to rise, analysts and experts point to.

 

1. the trend of Singapore citizens/permanent residents who worked overseas during the epidemic also returning to Singapore.

 

2. the opening of the 5-year work visa and field-specific long-term visas, with more people flocking to Singapore driving the rental market.

 

3. private home owners who sell their homes have to wait for 15 months before they can buy a resale HDB flat, and therefore have to rent a flat to live in first.

 

These are the reasons why it is hard to find a home in the rental market.

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