Residential rents in Singapore rose to a three-year high in 2019, with prices boosted by strong overseas demand that signals the city-state’s continuing appeal among expatriates.
Rents climbed 1.4 percent last year, supported by peak volumes of leases signed, according to real estate agency OrangeTee & Tie Pte, citing data from the Urban Redevelopment Authority. The number of leases signed reached a decade-high of 93,447 units last year, said Christine Sun, head of research and consultancy at OrangeTee & Tie.
Demand for rental apartments in Singapore mostly comes from expatriates, who find it a cheaper option than buying outright due to the hefty stamp duties levied on foreigners. «The strong influx of overseas workers in the new economy and companies seeking to de-risk from single country concentration should spur rents in 2020,” said Alan Cheong, executive director of research at Savills, who was quoted in «Bloomberg» (behind paywall).
Attractive to High-Skilled Expatriates
For expatriates, rents in Singapore are still cheaper than in Hong Kong and New York. A Deutsche Bank report last year puts Hong Kong in pole position, followed by San Francisco and New York. In contrast, Singapore rose one spot to 11th.
The city-state continues to lure high-skilled expatriates as it invests in the areas of fintech and health. Its political stability, high education standards, green spaces, low crime, and efficient infrastructure draws foreigners to the country. Despite the headwinds from the coronavirus outbreak, analysts forecast rents in the city could rise 3–5 percent this year.
