Rising rents have caused a significant increase in our accommodation inflation, which is expected to continue to climb higher next year.

Economists estimate that accommodation inflation will rise to between 5% and 7% next year, which will be the fastest growth rate since 2012.

The Monetary Authority of Singapore recently released its semi-annual (macroeconomic assessment) report pointed out that local accommodation inflation may rise further in the next year.

The report said that expiring leases are renewed at current higher rental levels. Driving accommodation inflation higher again in the next few quarters.

Meanwhile, more foreigners are returning to the local workplace, but only a small increase in new units available for rent, further pushing up rental market demand.

Accommodation is one of the components of the Consumer Price Index (CPL), as reflected through rents, and is one of the factors affecting the overall inflation rate.

Bank Negara Malaysia economist Lee Main Lee said in an interview with the United Daily News that accommodation accounts for about 22% of the overall inflation

. So far this year, accommodation inflation is 4%, compared to 1.4% in the same period last year.

We estimate that accommodation inflation will rise to between 5 and 7 percent next year," she said. This will be the fastest growth rate since 2012."

According to Lee, the return of non-resident employees to the local area, construction delays due to the coronary disease epidemic, and the 15-month wait for private homeowners to buy resale HDB flats after selling their homes are all reasons why it is hard to find a home in the rental market.

In an interview, Sun Yanqing, director of OrangeEasy's Industrial Research and Consulting Department, also said that the local job market remains strong and companies are attracting more foreign manpower, so demand in the rental market will continue to rise next year.