Rental prices likely to rise by another 10 to 15 per cent in 2023, netizens worry they won’t be able to afford it

SINGAPORE: 2022 was a year when property prices, including rent, went up, and it does not look like 2023 will be any different.

Rent went up by more than 20 per cent last year, and is likely to increase by another 10 to 15 per cent this year, Bloomberg said in a report earlier this week.

The uptick in rental prices looks to be driven by “resilient employment and household income” as well as Singapore’s ongoing post-pandemic economic recovery.

Bloomberg explained that the lack of supply of housing, added to an influx of wealth, has made Singapore the exception to a slowdown seen elsewhere in the world.

And while fewer housing units available meant lower home sales in December, there may some relief in sight, with over 18,000 private homes slated for completion this year, more than double the number from 2022.

Bloomberg also referenced a recent YouGov poll that showed that affordable housing affordability and the cost of living are the top two issues respondents said they want the government to address.

Netizens commenting on a SingaporeRaw Reddit thread expressed dissatisfaction over the likelihood of rental prices still going up this year.

“Why sg why?! Destroying the real economy while hoping the rich will fill in the gaps,” wrote a Redditor who posted the Bloomberg article.

One Reddit user was worried that “With rent like this, our foreign cook who works at the foodcourt won’t be able to afford housing rent.”

Last month, PropertyGuru shared tips to help individuals navigate high rental rates, applicable to everyone from couples affected by delayed BTO construction projects to millennials seeking more personal space or expats working in Singapore.

You can read these useful tips here.

/TISG

Relief for HDB upgraders as they wait for their homes to be completed; 18,000 new homes in 2023