We know that covid has turned the supply & demand housing situation into a mess over the last three years.
The demand for rental units in Singapore has been abnormaly high due to the delays in the construction sector. Local families have to rent while waiting for units to be built up.
And also with the reopening, demand further increases from the returning influx of foreign talent, international students.
Whenever I post a rental advertisement, my phone will be buzzing like crazy for the next few days.
Rents for condominium units have been increasing for 28 straight months, while rents for HDB have climbed for 16 months.
However, this situation is slowly shifting away. It is a positive sign for tenants who have been facing sharp increases in rents demanded by landlords. And also time for landlords to readjust their expectations.
The rental growth may have already passed its peak and should stay stagnant or slow down towards the second half of 2023.
A large supply of close to 20,000 units in year 2023 will be coming into the market and coupled with higher inflation and the rising cost of living, some tenants are being priced out and I see more expats shifting into more heartland areas.
You can start to see that units are put up on the online listings portals for a longer time and tenants have more choices to compare without having the need to make an offer on the spot or get into bidding war like 6-9 months ago.
To end off, landlords may need to reevaluate their rental pricing to attract tenants, especially there is a large supply coming up nearby. Tenants will need to be more savvy and compare around their options & confirming their offer.