Singapore: Real Estate Rental Prices increase sharply

Singapore is known for its cosmopolitan culture and diverse population, attracting people from all over the world to live and work in the city-state. However, the recent explosion in rental prices has left many foreigners struggling to keep up with the cost of living in this bustling hub.

In 2022, the private property price in Singapore has gone up by a staggering 29.7% year-on-year, the highest it has been since 2007. This increase in rental prices has put a strain on many, especially foreigners, who are finding it increasingly challenging to find affordable housing.

Many long-time expats believe that landlords are taking advantage of the demand and raising prices significantly, with some reportedly doubling the rent prices. For instance, Francesca, an Indonesian living in Singapore, shared that her landlord raised the rent by an exorbitant 100% to continue their leasing agreement.

Experts say that the pandemic has contributed to the rise in rental prices, with Singapore being considered a "safe haven" destination for many foreign workers wanting to avoid the strict measures in other countries like China and Hong Kong. This increase in demand has put immense pressure on the existing housing situation, leading to a shortage of affordable housing for foreigners.

Furthermore, construction work during the pandemic has been constrained, resulting in the delay of more projects and a significant increase in rental prices. With the pandemic still ongoing, and the effects still lingering, experts predict that rental prices may decrease by the end of the year as the economy slowly recovers.

As the rental prices continue to be a significant concern for many foreigners, the Singaporean government has initiated several measures to ease the burden of finding affordable housing. The government has increased the number of Build-To-Order flats available for purchase, extended various schemes to allow homeowners to defer mortgage payments, and provided rental relief to those in need.

The rising rental prices in Singapore have caused great hardship for many foreigners residing in the city-state. While experts predict that rental prices may fall by the end of the year, much still needs to be done to address the acute shortage of affordable housing options. Nonetheless, Singapore remains an alluring destination for people worldwide, with its rich culture, thriving economy, and diverse society.