Foreigners and locals alike are looking to rent places in Singapore whether for work or living purposes
The sales of private homes faced a drop in the last quarter of 2022. Asia Real Estate reported that the lesser units released by then could have been a factor affecting this as well as the inflation of prices. Renters and homebuyers were spending their money on travelling rather than investing in private housing, as well.
However, despite the price inflation and reduction of private homes sales, demand for rentals remained high with a split between local and foreign renters. The foreign renters in particular consist of professionals and executives who want a different, yet stable environment to work in.
Bloomberg noted the potential for increase of rental costs this year with the demand behind it. Singapore’s steady economic recovery and the recovery of employment and household income also played into the rental price increase. As the new year begins, analysts predict a rise in rent by 10-15 percent which, may be not as much as the previous year’s 21 percent, was still a jump.
With the high demand for rentals, paired with the increase of financials entering the country from foreign professionals, the market is predicted to see a bit more than double the units of private housing last year.
This does not change the fact that property prices are rising, which is why there’s a rise in rent. According to Dollars and Sense, property price increases could be credited to the lack of supply and the increase of rental demand. Even with little supply, the demand for property doesn’t change. This just makes it possible for prices to continue to increase while demand is still constant.
Given all this, there is an opportunity presented for investment. Investing in a property by 2023 and having it out for rent could lead to a steady inflow of finances with the increasing price of rent.
The Property Report editors wrote this article. For more information, email: [email protected].
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