Concerns over escalating rental costs amid Singapore’s economic recovery and housing supply issues.
SINGAPORE: 2022 was a year when property prices, including rent, increased significantly, and it appears that 2023 will follow suit. Rent rose by more than 20 percent last year and is projected to rise by another 10 to 15 percent this year, according to a recent Bloomberg report.
This uptick in rental prices is driven by “resilient employment and household income,” along with Singapore’s ongoing post-pandemic economic recovery. Bloomberg notes that the limited supply of housing, coupled with an influx of wealth, has positioned Singapore as an exception to the slowdown observed in other parts of the world.
Despite the reduction in available housing units leading to lower home sales in December, there may be some relief on the horizon. Over 18,000 private homes are scheduled for completion this year, more than double the number completed in 2022.
A recent YouGov poll referenced by Bloomberg highlighted that affordable housing and the cost of living are the top two issues that respondents want the government to address.
Netizens commenting on a SingaporeRaw Reddit thread have expressed dissatisfaction with the anticipated rise in rental prices this year. “Why sg why?! Destroying the real economy while hoping the rich will fill in the gaps,” one Redditor lamented, sharing the Bloomberg article.
Another user voiced concern that “with rent like this, our foreign cook who works at the food court won’t be able to afford housing rent.”
Last month, PropertyGuru shared tips to help individuals navigate high rental rates, offering advice to everyone from couples affected by delayed BTO construction projects to millennials seeking more personal space or expats working in Singapore. You can read these useful tips here.
