Singapore rents hit a 3-year high as expat needs surges

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Utilizing Urban Redevelopment Authority (URA) statistics, property agency OrangeTee & Tie noticed that rents rose 1.4percent this past year, although the amount of rents inked climbed into some decade-high 93,920 units.

Rental flat requirement in the city-state mainly stems out of expats, that find it more economical to rent than buying a unit due to hefty postage responsibilities imposed on foreigners.

“Some expats may be here for short term work duties, hence leasing will be much more logical and flexible option,” said Christine Sun, Head of Research and Consultancy in OrangeTee & Tie.

Vast majority of all Singaporeans, on the other hand, reside in public housing and think about renting as cost-inefficient awarded the high land costs, reported Bloomberg.

Singapore brings high-skilled expats since it proceeds to invest in sectors such as health and fintech. Foreigners locate the city-state attractive because of the efficient infrastructure, political stability, very low crime, higher education standards and green spaces.

In reality, a Deutsche Bank report last year recorded Hong Kong as the most expensive place to lease, together with San Francisco and New York after in second and third position, respectively. Singapore inched one place to 11th.

Looking forward, analysts expect rents to additional grow between 3 percent and 5 percent this year as Singapore braces for fallout in the COVID-19 outbreak.

“The powerful influx of overseas employees in the new market and businesses needing to de-risk from single nation concentration must spur rents in 2020,” explained Savills Executive Director of Research Alan Cheong.