No Respite From Scorching Singapore Rents
The supply crunch can only ease with a better yield for homebuyers and completion of new housing projects next year.
The skyline of Central Business District in Singapore.
Photographer: Ore Huiying/BloombergSingapore’s property market is in the throes of a 2008-type mania, with landlords squeezing tenants for the last possible cent. The previous bout of frenzy ended with the collapse of Lehman Brothers. This time, too, stratospheric apartment rents will return to earth, though the process is unlikely to be as swift as the city-state’s expat community might hope for.
Among major global cities, Singapore tied with New York for the dubious distinction of the fastest rental increase in first half of 2022. But the pain for tenants isn’t over yet. To see why, consider the problem from the landlords’ perspective. Mortgage costs of 2.4% — a 1 percentage point premium over the 3-month Singapore Overnight Rate Average — are double what they were a year ago.