Singapore's rental market may become even hotter due to recent restrictions on real estate and a reduction in housing supply. According to real estate portals 99.co and SRX, in September 2022, rents for private apartments increased by almost 31% year-on-year.
Context. Singapore has tightened home loan limits by raising the minimum interest rate threshold used to calculate the total debt service ratio and mortgage service ratio. He also added a 15-month waiting period for private homeowners looking to move into resold public housing apartments.
The prospects. Austerity measures in September aimed at home purchases may lead to more people renting, which will lead to higher rental prices, according to Pou Ying Khuan, head of research at 99 Group. The influx of expatriates and wealthy immigrants has bolstered the city-state's real estate market, raising concerns about affordability.
Rents in the main central region, which is usually popular with expatriates, increased by 29% over the same period.
The rental market can remain "on the horse" for at least six to nine months until an increase in housing supply brings relief, said Nicholas Mack, head of research and consulting at ERA APAC Realty Ltd.
About 17,000 private homes are expected to be built next year, up from 14,000 this year.
Source: Bloomberg
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