Residential Rents in Singapore See Strongest Growth Worldwide
In recent years, Singapore's property market has experienced significant growth, with residential property prices reaching record highs in 2021. This trend has continued into 2022, with the latest Knight Frank report indicating that Singapore has now taken over New York as the city with the strongest growth in residential rents in the last quarter of 2022, thanks to a combination of high demand and a shortage of supply.
According to the report, Singapore saw a 28% increase in annual rents compared to the same period the previous year. New York followed closely behind with a 19% growth rate, while London and Toronto took the third and fourth spots in the survey of prime residential rents across ten cities.
The rapid increase in rents has caused concern among Singapore residents, particularly as living costs are already on the rise due to the pandemic. However, new visa rules aimed at attracting foreign talent are expected to further supplement tenant demand. Despite this, the completion of 17,000 private homes in Singapore this year is likely to alleviate some of the pressure on accommodation. The government has also taken steps to address the issue of high property prices by introducing measures to cool the market.
Meanwhile, Hong Kong ranked at the bottom of the list, with rents falling 6.4% year-on-year due to international companies deferring expansion plans and people leaving the city during the pandemic. Although prime rents remain strong in many global cities, the rate of annual growth is starting to slow down, according to Knight Frank.
Despite the slowdown in annual growth in prime rents across many global cities, the overall property market remains robust, with the property sector continuing to attract strong interest from both local and foreign investors.