Expatriates fleeing Hong Kong frustrate Singapore peers as home rents climb at fastest pace in a decade
- Rents are rising at the fastest pace since 2011 when Singapore’s economy was rebounding from post-crisis years
- An influx of expatriates from Hong Kong has added to the usual migration trend in Singapore, increasing competition for private residences
Rents in core central, overall central and outside central districts in the city state ranged from S$3.20 (US$2.40) to S$4.43 per square foot per month in February, according to Singapore-listed PropNex. That translates into a 10.2 per cent to 11.9 per cent increase on an annual basis.
The pace has sustained since the final quarter of 2021, when rents surged by 9.5 per cent to 11.1 per cent to a seven-year high, according to data compiled by the Urban Redevelopment Authority. The jump is also the fastest since they climbed by 13 to 15 per cent in the first quarter of 2011.
“There is currently very high demand for rental properties due to a confluence of factors: locals turning to the rental market due to construction delays and the influx of foreigners,” said Catherine He, head of research at Colliers Singapore. “As such, landlords can be expected to have greater bargaining power and ask for higher rents.”
Recent reports indicated several multinational companies have shifted some of their key executives to Singapore to sidestep Hong Kong’s tough Covid-19 quarantine and travel restrictions. French lender Societe Generale is temporarily moving about a dozen traders from Hong Kong to Singapore, Bloomberg reported last month.
While Hong Kong has recently eased its Covid-19 protocols, it may not stem the brain drain. Company executives continue to depart while admission rates in several international schools have tumbled. A recent survey of 260 executives by the European Chamber of Commerce showed that nearly half of the businesses were considering moving elsewhere next year.