According to a report by Knight Frank, annual rents in the city-state rose by 28 per cent this quarter compared to the same period a year earlier. New York followed Singapore with a 19 per cent growth rate, while London and Toronto came in third and fourth, according to the survey of prime residential rents in 10 cities.

Soaring rents in Singapore - partly due to a lack of new housing supply during the epidemic - have been alarming residents, who have cut household budgets at a time when the cost of living has soared. Attracting foreign talent will further increase tenant demand.

Nevertheless, the city still has 17,000 private homes due for completion this year, which could ease pressure on accommodation.

At the bottom of the list is Hong Kong. According to the report, rents in Hong Kong fell by 6.4 per cent year-on-year as international companies delayed their expansion plans. Demand from tenants has decreased as people have been leaving the city in succession during the epidemic.

Knight Frank said that while prime rents remain strong in many cities around the world, overall annual growth rates are beginning to slow down.