Singapore rents go through the roof despite population dip, up by nearly 10 per cent in a year
- Rents increased by 9.9 per cent in a year as demand outstrips supply that has been hit by construction delays because of Covid-19 curbs
- Demand rising as some wait for building work, others return from working away, the young move out of family homes and landlords sell units due to high prices
Home rents have risen to a seven-year high in Singapore, already one of the world’s most expensive cities, even though the city state’s population has dipped in the past two years.
The rental price index of private residential properties increased to 114.2 in the fourth quarter of 2021, up 9.9 per cent from the same period a year earlier, according to Singapore government data, as demand outstrips supply that has been hit by construction delays because of Covid-19 curbs.
“I need to win the lottery,” said American Aimee Yager as she described her weeks-long house hunt in Singapore and only finding a new four and a half bedroom home for her family of four after raising her monthly rental budget to about S$10,000 (US$7,400).
“We just can’t afford it,” said Yager, whose experience is echoed by confounded and frustrated tenants, both local and foreign.
Shortages of workers and materials because of the Covid-19 pandemic has delayed the construction of private condominiums and public Housing Development Board (HDB) flats.
At the same time, rental demand is rising, which analysts attribute to a range of factors. Some local Singaporeans are renting while they wait for their flats to be completed, while high property prices have prompted some landlords to sell their units, reducing the rental stock.