Singapore Rents Soar – Expats in Hong Kong Bag Bargains
Despite a recent fall, Singapore rents have risen for the second time in a decade, and have surpassed Hong Kong. Analysts say this is the start of a new wave of rental growth. The rise has been led by a rise in the number of Singaporeans looking to rent a home. In addition, young professionals who are moving into Singapore are seeking to lease their own space to work from home, while some of them are renting while waiting for a new flat.
With Singapore’s housing stock near its lowest level in five years, rents are expected to stay buoyant for at least six to nine months. However, Singapore’s government may need to take action to address rental scams. Several new launches have also seen strong demand. This is likely to push some buyers into the market, but it is not expected to lead to a shortage of rental properties.
Some of these new launches are being developed by Malaysian billionaire Quek Leng Chan, who is planning to build a luxury condominium project in Tengah town. The project is called the Copen Grand, and it will be the first executive condominium to rise in Tengah town. The other launches are being developed by UOL Group and Frasers Property.
Singapore’s rental market is on a streak, with rents up 8.5% in the first half of 2022. This ties with New York, which is the only other city in the world to have recorded such an increase.
Rentals are rising in Singapore because of a combination of supply issues and higher inflation. Energy costs have risen, and energy prices are expected to remain elevated over the second half of the year. Additionally, there are many expats who are leaving the country. As a result, some retailers are struggling to meet increased costs. The government has offered to help retailers manage energy bills.
The pandemic has also had an impact on the rental market. Many Singaporeans who lived in private houses and condos have had to relocate due to the pandemic. In addition, some Singaporeans have repossessed homes that they previously rented. Others have moved out of their family homes and into multi-generational homes.
The Singapore government also introduced cooling measures to help control skyrocketing prices. These measures included a 15-month waiting period for private homeowners to resell their flats and a 15-month waiting period for public housing flats to be resold. There are also additional limits on the amount of loan that people can take out. The government’s cooling measures were intended to help reduce the skyrocketing property market and its impact on the economy.
Singapore rents have also risen due to a rise in the number of foreign workers in the country. This has driven up rents for condos and landed properties. There has also been a surge in professional workers entering the country, especially from Hong Kong.
With Singapore’s rental market expected to remain hot for the next few years, real estate investors need to pay close attention to its health. As Singapore rents soar, it is crucial to remember that the market is not infallible, and there is always a chance that prices will drop.