Singapore’s rental market could get even hotter due to the latest property curbs and a tightening housing supply.
Rents for private apartments have soared nearly 31% by September compared with a year ago, jumping for 21 consecutive months, according to data from real estate portals 99.co and SRX.
Property austerity measures in September aimed at housing purchases could cause more people to rent, driving leasing prices higher, according to Pow Ying Khuan, head of research at 99 Group. An influx of expatriates and wealthy immigrants has bolstered the city-state’s property market, triggering concerns about affordability.
Rents in the core central region, typically popular with expatriates, increased 29% in the same period.
Singapore tightened home loan limits, raising the interest rate floor used to calculate the total debt-servicing ratio and mortgage-servicing ratio. It also added a 15-month waiting period for private homeowners looking to move into resold public-housing flats.
The rental market could remain buoyant for at least six to nine months, until an increase in home supply brings some relief, said Nicholas Mak, head of research and consultancy at APAC Realty Ltd unit ERA.
About 17,000 private houses are expected to be completed next year, up from 14,000 this year.