“The influx of new properties is driving down rental prices, with more corrections expected by 2024.”
SINGAPORE: Rental rates in Singapore have experienced a sharp decline, reversing the steep increases of 2021 and 2022, according to Juliet Stannard, Director at CitiProp Property Management.
In an interview with YouTuber Max Chernov, Ms. Stannard, who has lived in Singapore for 30 years, described the drop in rental prices as dramatic. “They’ve literally fallen off a cliff. Just all of a sudden, there’s been a correction with the supply of new properties,” she said.
The completion of numerous properties, delayed during the construction slowdown caused by the COVID-19 pandemic, has eased the rental market. With new HDB flats becoming available, private rental units have opened up, helping to balance the market.
Reflecting on the “crazy” rental market of 2022, Ms. Stannard noted that high prices persisted into early 2023 but have since started to stabilize.
While the interview was posted on August 13 and has garnered over 40,000 views, it appears to have been recorded a few months prior, as Ms. Stannard mentioned expecting more expatriates to return in July and August following the summer break in international schools.
Future Trends and Insights
Ms. Stannard does not anticipate rental prices to return to pre-surge levels, particularly in high-demand areas like Sentosa. However, less sought-after locations are seeing greater price flexibility, with further corrections expected toward the end of 2023 and early 2024.
“It takes a few months for landlords to start accepting the fact that they’re not getting these peak prices anymore,” she explained.
For those seeking rental opportunities, Ms. Stannard recommends areas such as East Coast, which offers “more for your dollar,” as well as River Valley, Pasir Panjang, and Keppel, where there is increased availability.
She also noted that newer properties, while boasting modern amenities, tend to be more expensive and smaller. Instead, she advises renters to consider older developments, which may offer better value for money.
