Hanoi (VNA) – Home rents have risen to a seven-yearhigh in Singapore, already one of the world's most expensive cities, eventhough the city-state's population has dipped in the past two years.
The rental price index of private residential propertiesincreased to 114.2 in the fourth quarter of 2021, up 9.9 percent from the sameperiod a year earlier, according to Singapore government data, as demandoutstrips supply that has been hit by construction delays because of COVID-19curbs.
Shortages of workers and materials because of thecoronavirus pandemic has delayed the construction of private condominiums andpublic Housing Development Board (HDB) apartments.
At the same time, rental demand is rising, which analystsattribute to a range of factors. Some local Singaporeans are renting while theywait for their apartments to be completed, while high property prices haveprompted some landlords to sell their units, reducing the rental stock.
Other Singaporeans returned to the country during the pandemicand repossessed homes that were previously rented out.
The vacancy rate of private residential units shrank to 6percent at the fourth quarter of 2021 from 7 percent a year ago, governmentdata showed. Rents have also risen despite expatriates leaving Singapore amidthe pandemic.
Analysts expect rents to rise 8 percent to 12 percent thisyear, as Singapore loosens border restrictions, allowing more foreigners intothe country.
The city-state is also poised to attract workers from Hong Kong (China), which is seeing an exodus of expatriates who areunhappy with its stringent COVID-19 prevention rules.
The hot rental streak is likely to continue for a couple ofyears until construction catches up, said Christine Sun at real estateconsultants OrangeTee and Tie.
The surging property market is adding to the cost of livingin Singapore. Inflation has climbed to multi-year peaks this year, while fueland electricity costs are forecast to spike further./.
The rental price index of private residential propertiesincreased to 114.2 in the fourth quarter of 2021, up 9.9 percent from the sameperiod a year earlier, according to Singapore government data, as demandoutstrips supply that has been hit by construction delays because of COVID-19curbs.
Shortages of workers and materials because of thecoronavirus pandemic has delayed the construction of private condominiums andpublic Housing Development Board (HDB) apartments.
At the same time, rental demand is rising, which analystsattribute to a range of factors. Some local Singaporeans are renting while theywait for their apartments to be completed, while high property prices haveprompted some landlords to sell their units, reducing the rental stock.
Other Singaporeans returned to the country during the pandemicand repossessed homes that were previously rented out.
The vacancy rate of private residential units shrank to 6percent at the fourth quarter of 2021 from 7 percent a year ago, governmentdata showed. Rents have also risen despite expatriates leaving Singapore amidthe pandemic.
Analysts expect rents to rise 8 percent to 12 percent thisyear, as Singapore loosens border restrictions, allowing more foreigners intothe country.
The city-state is also poised to attract workers from Hong Kong (China), which is seeing an exodus of expatriates who areunhappy with its stringent COVID-19 prevention rules.
The hot rental streak is likely to continue for a couple ofyears until construction catches up, said Christine Sun at real estateconsultants OrangeTee and Tie.
The surging property market is adding to the cost of livingin Singapore. Inflation has climbed to multi-year peaks this year, while fueland electricity costs are forecast to spike further./.
VNA
