Rents should continue climbing at their present rate of 8 to 10 per cent this year.
Colliers International cited the government's Urban Redevelopment Authority rent index, which showed average rents of non-landed residential properties, rose by 12 per cent in the Core Central Region, 10 per cent in the Rest of Central Region and 9.4 per cent in the Outside Central Region in the second quarter of the year.
In square footage terms, Colliers research showed that average monthly gross rents of luxury apartments had soared by 93.9 per cent since the market revival in 2004.
Rents averaged S$6.23 (HK$32.24) per sqft as of June 30, 7.9 per cent higher than the level recorded in the preceding quarter and surpassing the peak level of S$5.95 per sqft in the first quarter of 1996 by 4.6 per cent.
PropNex attributed the rise to a ripple effect. For example, those who sell their homes in en bloc sales are looking for replacement homes.
Their search often takes them outside the prime districts where they sold their properties due to the rising prices.