RESIDENTIAL PROPERTY | Staff Reporter, Singapore

Are Singapore's prime residential rents getting cheaper?

Rents fell 3.3% YoY in 3Q16.

Prime rental performance across 17 cities tracked by Knight Frnak has ground to a halt, recording 0% annual growth in 3Q16.

Singapore registered a 3.3% rental slump for the said quarter, ranking 13th in the index.

It was Toronto that topped the rankings, with primerents rising by 7.9% year-on-year. Annual population growth of 9% in 2015 and a low and stable rate of unemployment (6.6%) have contributed to increased demand for rental properties.

Tokyo came next, with a 7.3% rent uptick. It was followed by Capte Town, Moscow, and Tel Aviv, which registered their respective rental increase of 3.3%, 3.2%, and 2.7%.

"Whilst uncertainty remains over the form of Brexit and the stance on global trade which President-elect Trump is likely to take we can be more confident that a US rate hike is imminent. However, any rise may have significant knock on effects particularly for emerging markets. Record levels of sovereign debt in some emerging markets means that even a small increase in interest rates may suppress corporate activity, which in turn could hinder economic growth and prime rental market performance," Knight Frank senior analyst Taimur Khan said. 

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