Singapore’s private rents are expected to rise at a slower pace of 13% to 16% next year due to an increase in supply, researcher OrangeTee & Tie estimates.
(Bloomberg) — Singapore’s private rents are expected to rise at a slower pace of 13% to 16% next year due to an increase in supply, researcher OrangeTee & Tie estimates.
An influx of more than 18,000 newly completed private homes next year could help ease rental pressure, potentially bringing down prices that are estimated to have jumped 26% to 29% this year, analysts led by Christine Sun, head of research at OrangeTee & Tie, wrote in a report released on Friday.
Singapore’s rental market surged in the past two years as demand largely outstripped supply.
The city is unlikely to see a significant fall in the private market, as landlords may be hesitant to cut prices given the higher cost of living, property taxes and mortgage rates, Sun said.
Public housing markets could also see the same trend.
Housing and Development Board rents could rise at a slower pace of 15% to 18% next year, down from an estimated 26% to 28% this year, the report said.
“Rising home prices and cooling measures may also cause some to turn to the rental market instead of buying a new home,” Sun said.
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