Rents for landed and non-landed residential properties reached a quarterly increase of 10.9% and 8.3% respectively in the 3rd quarter of 2022.

The private property rent index has reached a 24-year high since the fourth quarter of 1998.

Residential leasing volumes increased by 20.5% YoY to 25,382 in 3Q2022.

This was the largest quarterly increase in rental volumes since Q3 2020, when rental transactions increased by 34.6 per cent sequentially.

Continued interest rate hikes are causing landlords to raise rents; after all, mortgage repayments will increase at the same time.

The number of landed homes rented out increased to 1,812 transactions in the third quarter of 2022, up from 1,228 transactions in the second quarter of 2022.

Meanwhile, in the non-landed property sector, the number of transactions rose sharply by 18.8% to 23,570 in the last quarter on a year-on-year basis.

With the relaxation of border restrictions and segregation measures, the return of foreign students and expatriates to Singapore has led to a surge in residential rentals, coupled with delays in the completion of new homes for locals who have had to seek temporary respite housing.

The residential rental market is also expected to remain tight towards the end of this year.

The supply crunch in the rental market is likely to ease by 2023 when nearly 20,000 new private residential units are completed, and the vacancy rate of units is likely to rise.

Rent increases are likely to slow in 2023 as demand slows and new units flow into the market.

Based on past cyclicality, 2023 is critical to see together if the rental market will adjust due to the confluence of economic cycles.