Singapore residential rents up 4.2% in Q1

Rental volume declined 7.2% to 22,188 units during the quarter.

According to URA data, rental volume excluding EC dipped by 7.2 per cent q-o-q from 23,915 units in Q4 2021 to 22,188 units in Q1 2022. Rents rose further by 4.2 per cent last quarter while occupancy rates remained healthy at 94.7 per cent in Q1 2022. 

OrangeTee says a few forces may be driving rents higher: Rents have been rising in some locations as a result of a shrinking rental stock and a lack of new home supply. Some private home owners sold their units as resale prices have been on the rise. New completions were also unable to keep pace with housing demand. 

Here’s more from OrangeTee:

Many would-be homebuyers who were priced out of the market or were affected by new cooling measures turned to the rental market. They are boosting rental demand and pushing rents higher. Some first-timers could also be renting in the interim while they wait for the completion of their new homes. 

Moving forward, inflation and rising costs such as higher maintenance charges, climbing interest rates and higher property taxes may also have a snowball effect on rents, as landlords pass on the costs to their tenants. Therefore, rents may continue to climb if inflationary pressures escalate in the coming months. 

More Malaysians are expected to head home as safe management measures are further lifted. We are expecting more work pass holders to return, which may drive rental demand higher especially in areas near the causeway. The northern region like Yishun, Sembawang and Woodlands, and the western part of Singapore like Jurong may be popular too. 

We estimate that rents may rise faster around 8 to 11 per cent this year. Overall leasing volume may reach about 95,000- to 100,000-units in 2022