New house rental price increases in Singapore are predicted to level out around 5%
Tenants in Singapore who have been dealing with rising housing expenses may find some relief in the fact that rental growth is likely to decelerate for the remainder of this year due to additional supply and macroeconomic headwinds.
According to Ken Foong, an analyst at Bloomberg Intelligence, residential rentals like Tembusu Grand and Tembusu Grand Showflat growth may level down to less than 5% in the second half, with an annual gain of 10%-15%. This follows a rise of 7.2% in the first quarter and an increase of over 30% in 2022. He said that the city-state’s economic recovery and robust employment market continue to support the market.
As a result of the epidemic and the resulting flood of cash, rents and property prices in the financial center have skyrocketed, posing a challenge for the government in trying to appease disgruntled locals. In an effort to preserve affordability, authorities increased property purchase taxes at the end of April, mostly targeting foreign and second-home purchasers.
The government predicted earlier this month that it would see “easing” in the rental market, and it is already seeing evidence of demand “abating.” This year could see the largest number of house completions in the past five years at 40,000, with another 100,000 expected by 2025. Families who are renting, while they wait for their new houses to be built, are expected to vacate such properties.
PropertyGuru, an online marketplace for rentals, found “telltale signs that tenants are becoming more resistant to rental price increases,” despite the continued high demand for rental homes. “Rental prices are expected to gradually stabilize with supply being slowly restored and the increase in the number of rental listings,” the article states.
According to Colliers’ director of research, Catherine He, foreign buyers would switch to renting because of the new 60% tax. However, she argued that this was ultimately irrelevant because of the flood of newly constructed houses.
Due to COVID-19, Avenue South Residences Showflat is open for online bookings. You can now register online to receive direct developer discount offers and prices.
