Singapore residential rents to rise by 6-8% by end-2021
Rents are expected to increase by up to 11% by next year.
As borders slowly reopen and international travel returns, Singapore’s rental demand is expected to rebound in 2022. With Singapore establishing Vaccinated Travel Lanes (VTLs) established with many countries, the country is expected to welcome more expats, business partners, and students after a two-year exodus.
Here’s more from OrangeTee Research:
Many permanent residents (PRs), Singaporeans and foreigners have returned over the past few weeks. Further, the long-awaited reopening between Singapore and Malaysia will see many stranded Malaysian workers returning.
Hiring prospects may improve for certain sectors like aviation, hospitality, MICE (Meetings, Incentives, Conferences & Exhibitions) and tourism, which may help drive up rental demand.
Rents have been rising over the past year amid a tight supply of completed homes and robust demand. We estimate that rents may increase by 6 to 8 per cent this year, and may rise at a faster pace of between 8 and 11 per cent next year (Chart 4).
We anticipate that the overall leasing volume may reach around 92,000- to 97,000- units this year, rising further by 3 to 4 per cent to around 95,000- to 100,000-units in 2022.