Some analyst in Singapore are noting that rent in Singapore could have a market adjustment in the Singapore real estate market due to the cooling measures introduced in the last few months as well as an oversupply of occupational ready homes in the next 2 years. The occupational ready homes may be put out for rent in Singapore. Also, the inevitable increase in interest rates as well that coincide with housing supply will may cause a shock in the real estate market in Singapore. Interest rates are set to rise as the Federal Interest Rate is at its historic low and can only increase from now. Also, nearly 120,000 public and private homes will be ready for occupation in the next 3 years which might suggest oversupply of landlords who are looking to rent their unit.
Rent in Singapore
It is noted also that the market correction will not be too high due to the price of the land that developers had bid for. However, as investor confidence is vulernable at the moment, it will only take one or 2 bad news to dent real estate investor’s confidence and create a spiral downhill in property rent in Singapore. Also, on top of the current real estate environment, Singapore is highly dependant on other countries for its economy and this makes it vulnerable to external shocks. Some analyst also note that the last property property rent in Singapore market correction coincide with the world economic recessions. Now that the government has introduced several rounds of cooling measures, should there be a marcoeconomic depression, Singapore’s real estate is bound to fall.
Rent in Singapore to fall
It is still noted that even if Singapore goes into a recession, home prices are unlikely to plunge due to the high prices which the developers have bid for the land. It remains to see how Singapore rental market will be doing.