The endemic future is creeping up on Singapore’s apartment rental market
The new COVID variant splashed across the Singapore news scene when the Ministry of Health (MOH) reported 11,732 new COVID-19 cases on 11 October. It was the first time the daily number of cases exceeded 10,000 in more than two months. Still, the reopening boom continues. Companies and expats are still returning to Singapore to do business. So could all this momentum spur longer-term Singapore apartment rentals?
Singapore: A Safe Harbour from COVID-19
Despite global geopolitical tensions and fears of a recession, Singapore’s economy still seems to be chugging along. Hotels and nightclubs throng with tourists. Last week, Singapore avoided a technical recession, growing 4.4 per cent year on year in the third quarter of 2022. While some signs point to a worldwide recession come January 2023, Bloomberg Intelligence predicts that growth will slow to 2.9 per cent next year. Even so, Singapore’s economy will outperform many others in the region.
Historically, Singapore’s economy so far has been resilient against shocks to the global economy. It was able to stand its ground even through the COVID-19 pandemic. While the COVID-19 pandemic impacted economic growth in Singapore during 2020, the nation-state’s total economic output had already exceeded pre-crisis levels last year.
Factors Behind Longer Leases for Singapore Apartment Rentals
With the government’s long-term outlook and planning, foreign firms and expatriates are looking to stay at apartment rentals for a longer period of time to tide through whatever COVID-19 variant that could be coming next. After all, Singapore condo rentals and public housing have always been a tenant’s haven. Serviced apartments, with their comfort and convenience, have been enjoying a resurgence in popularity too. However, before the current skyrocketing prices, rents were stable because the housing supply was always adequate.
But extremities in the shorter term may also push tenants to sign longer leases. The market has been facing supply issues as COVID-19 affected the construction of both public and private residential properties. With persistent upwards pressure on rental rents, tenants are signing longer teases to lock in their current rental rates. More and more tenants are looking at two-year leases for Singapore apartment rentals — and even serviced apartments — instead of the usual one-year leases.
Foreign firms also continue to view Singapore as a gateway to other regions in Asia. China’s economic slump and tensions with the West over Taiwan and Hong Kong further entrenched Singapore’s position to do so. As Singapore reopens for business, many firms have decided to move some operations to Singapore or increase their headcount. With that, Singapore will continue to witness a stream of expats moving in, further eating up supply in the market.
Plus, in this endemic future, expats are only more likely to move out of their place of origin when there are long-term prospects. And Singapore has always been ticking all the boxes for expats and foreign firms: a robust rule of law, convenient public transportation, adequate education and healthcare infrastructure.
Rough Seas Ahead for Apartment Rentals in Singapore
The distorted rental market will likely persist, even if new residential developments are completed before the end of next year. The new projects may provide some relief, but the supply of available Singapore condo and HDB rentals might still decrease in 2023 and 2024. The new property cooling measure may not move the needle by much because the 15-month wait-out period may also spur demand in the residential rental market, as buyers not impacted by the wait-out period might have to rent a home during the 15-month period.
Singapore Apartment Rentals Made Breezy with MetroResidences
Whether you’re staying for a longer period or not, we have a wide range of options across coveted locales such as Raffles Place, Orchard Road, and Arab Street. If you’re planning to move your furkid abroad with you, we’ve even got a couple of pet-friendly Singapore condo rentals and serviced apartments too.
All our serviced apartments and hotel rooms are conveniently located, with hassle-free access to public transport. It all comes fully furnished too, with amenities like wi-fi, air-conditioners, and even fully-equipped kitchens. With MetroResidences, you can find your home away from home.
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