According to a report in Hong Kong's South China Morning Post on the 19th, average housing rents in Singapore are now even higher than those in Hong Kong, which is known for being expensive, with landlords taking advantage of the surge in market demand to raise their asking prices.
According to the Urban Redevelopment Authority of Singapore, the average monthly rent in central Singapore rose by 29.7 per cent to S$62.08 (about RMB 318.79) per square metre in December last year.
In contrast, average rents in Hong Kong fell 4.1 per cent to HK$360.9 (about RMB315.99) per square metre in December last year, said Midland Real Estate Hong Kong.
According to the Global Times' special correspondent in Singapore, rents in Singapore have been rising, and the rate of increase has become even more eye-watering in the past two years as the epidemic has eased.
Data shows that in the first nine months of 2022, rents in Singapore have risen by about 21 per cent. In contrast, home sales fell for the third consecutive month in December last year, mainly due to a lack of housing stock and tighter loan limits.
These factors have indirectly driven people towards renting, driving up rents. Whenever a property is available for rent, it attracts hundreds of enquiries from tenants. There are even tenants who are willing to sign up just by looking at the photos.
The rent for a HDB flat rented by a Global Times correspondent in Singapore has risen from S$1,500 eight years ago to just over S$3,000, even though it is not in the city centre.
The average monthly salary in Singapore is currently around S$5,700, and renting a home would account for a large portion of personal expenses if one did not own one.
The South China Morning Post reported that soaring property prices in Singapore have diluted the city's competitive edge in attracting foreign talent at a time when Singapore is competing with Hong Kong for global talent in its quest to become Asia's financial centre.
Most rentals in Singapore are renewed every two years. This reporter has learnt that private residential rents for expatriates in Singapore increase by an average of 20 to 40 per cent each time, with some landlords even doubling their rents.
The situation is even more exaggerated in southern Sentosa, where the majority of tenants are expatriates.
One real estate agent said that in January last year, rents in an upscale residential area there soared by 40 per cent in one day, starting at S$26,000 a month in the morning and rising to S$37,000 a month by the close of business in the evening.
According to Bloomberg, more than a third of Singapore's 5.45 million people are now expatriates, of whom about 650,000 are permanent residents or "white-collar" visa holders, and they dominate the rental market.
According to Stannard, director of Citi Property Management Singapore, Singapore is trying to position itself as a place where foreigners can afford to live, but as rents become more expensive, many will leave and "no one can afford a 50 per cent increase in rent. It's unsustainable".
