As outrageous as the rent hike has been, what is even more outrageous is that with such high rents, there are still dozens of groups of people grabbing a flat at the same time. Some tenants said they just took one more look and the room was already rented out.
Why have rents gone up?
There are four main reasons why demand for rental accommodation in Singapore has skyrocketed after the opening of the Singapore epidemic.
i. Many Singaporean PRs and citizens abroad have also gradually returned to the country, increasing the demand in the rental market.
ii. The Singapore market is hot and the number of students studying abroad has increased. According to a set of figures released by the Singapore Ministry of Education in July this year: the number of Singapore Student Pass holders increased from 55,100 to about 59,200, an increase of over 4,000.
Third, the number of PRs has increased, with about 21,500 citizens approved in 2021 and about 33,400 permanent residents approved, a 12-year high!
Fourth, many multinational companies have set up their headquarters in Singapore, with an increase in foreign workers.
Grab has set up its headquarters in Singapore, which will house 3,000 people, Dyson has opened its headquarters with more than 1,000 positions; China Ke Xing Group has set up its research facilities and international business headquarters in Singapore; TSMC has announced that it will invest US$1 billion in a factory in Singapore, etc.
According to the 2022 Population Brief released by the National Population and Talent Agency under the Prime Minister's Office on September 27, Singapore's total population as at June this year was about 5,637,000, about 180,000 more than in June last year, an increase of 3.4% year-on-year.
Seeing these figures above, I believe you will understand that rents in Singapore are likely to remain relatively high for a short period of time, and may even continue to rise.
Once rents go up, it will be very difficult for them to come down. In the long run, if Singapore's future development remains unchanged, the market demand will not decrease and rents will not drop significantly.
If you want to rent a room in Singapore, you must hurry up and don't hesitate to make a move when you see a room you like.
