Singapore’s private home rents increased by 0.7% in the second quarter of the year, while property prices also saw a modest uptick, according to the Urban Redevelopment Authority (URA). This marks a continuation of the gradual upward trend observed in recent quarters, driven largely by limited new supply and sustained demand from both locals and expatriates.
The modest rent rise comes as the economy continues to recover, with more professionals returning to the city-state. Analysts note that the rental market has been buoyed by a tight supply of completed homes, particularly in popular districts. Meanwhile, home prices edged up, reflecting similar pressures.
For tenants, the increase may add to living costs, especially for those on fixed budgets. Landlords, however, are likely to benefit from the rising rents. The URA data also shows that vacancy rates remained low, indicating that demand is absorbing available units.
The government has previously introduced cooling measures to prevent overheating, but these have focused on the property purchase market rather than rentals. Some experts believe the rental trend could prompt a review of policies.
Looking ahead, the pace of rent increases may depend on new housing completions in the coming months. If supply catches up, the upward pressure could ease. However, if demand stays strong, rents could continue to climb.