Top reason why Singapore residential rents are going downhill
Huge unit supply gives tenants bargaining power.
In its latest analysis of the Singapore residential rental market, Knight Frank Singapore said that there are over 16,000 private residential units launching island-wide in 2013.
"Rents are anticipated to see downward pressure this year as prospective tenants are presented with ample housing options," said Alice Tan, Senior Manager, Consultancy & Research, Knight Frank Singapore.
She further noted that the moderate rise in rents observed in 2012 among prime residential properties is a reflection of sustained demand from tenants, amid higher purchasing costs with the Additional Buyer’s Stamp Duty imposed on foreigners and Singapore Permanent Residents.
"Leasing demand for residential units in prime districts has been moderating for the past 2 quarters, as accommodation budgets for many Singapore expatriates are constrained amid a challenging global business environment. Budget-conscious expatriates are also seen to be opting for units in the city fringe and suburban locations," she added further.