The report indicates that in the first half of the year, rental prices of non-landed private residences in Singapore saw a 7% increase. Specifically, the Core Central Region (CCR) witnessed a 6% rise in rental prices for upscale private residences, while the Rest of Central Region (RCR) and Outside Central Region (OCR) saw an 8% increase for mid-tier and mass-market private residences, respectively.

However, looking at the quarterly changes, there was a 1% decline in the rental prices of non-landed private residences in the third quarter. Rental prices in the Core Central Region decreased by 1%, while the prices in the Rest of Central Region and Outside Central Region remained stable compared to the previous quarter. Nevertheless, the overall trend still points towards an increase in rental prices.

The report also highlights that in the third quarter, three-bedroom units in areas like River Valley, Boat Quay, and Marina saw the highest monthly rents, averaging at $9,500 Singapore dollars. This was followed by Harborfront and Tanjong Pagar, with an average monthly rent of $8,825 Singapore dollars. Orchard and River Valley came in third place, with an average monthly rent of $8,000 Singapore dollars.

This forecast indicates a strong momentum in rental price growth in the Singapore real estate market, which could significantly affect real estate investors and tenants. For real estate investors, the growth in rental prices implies an increase in potential return on investment, which may attract more investors into the market. For tenants, rising rents may lead to an increase in living costs, especially for those renting in upscale private residences and popular areas.

Several factors contribute to the increase in rental prices. Firstly, the recovery of the Singapore economy and stable growth in the employment market may lead to an increase in tenant demand, driving the rental prices up. Secondly, the shortage of supply is also a significant factor contributing to the rise in rental prices.

With limited land in Singapore, especially in the Core Central Region where land is scarce, the housing supply remains constrained. Additionally, the Singapore government's restrictions on property purchases by foreigners may also contribute to an increase in demand in the rental market, thereby driving up rental prices.

For the government, it is essential to closely monitor the impact of rental price increases on the cost of living for citizens and take appropriate measures to mitigate the pressures caused by rising rents. These measures could include increasing housing supply, encouraging developers to provide rental housing that is affordable for middle-income families, and strengthening regulation in the rental market to ensure the protection of tenants' rights.