According to a report by CNA, the Monetary Authority of Singapore (MAS) predicts that the pressure on home rentals will alleviate in the coming months. This is attributed to a significant increase in the number of new housing units being completed. In 2023, approximately 40,000 public and private housing units are expected to be finished, marking the highest annual completion since 2018.
MAS forecasts this pace of completion to continue for the next two years, with nearly 100,000 public and private homes set to be completed. As individuals move into their newly completed homes, rental demand is expected to moderate as people vacate their rental properties. MAS also observed a decline in viewings and leasing inquiries at real estate agencies since the beginning of 2023. The surge in home rents was primarily caused by an exceptional demand-supply imbalance resulting from pandemic-related disruptions that led to delays in housing projects' completion.
Petit Jervois, a freehold development in district 10 along Jervois road obtained T.O.P October 2022. https://www.erg.sg/newdevelopment/petit-jervois-
However, MAS believes that these market imbalances have already begun to ease and will continue to do so progressively throughout the year. The Straits Times reported that Singapore has surpassed New York to become the city with the highest rental growth worldwide, as rental rates reached record levels in March. The rental increases even extended to the HDB market, with certain 5-room flats in Cantonment Road and Ang Mo Kio commanding monthly rents exceeding $6,000.
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