Everything is going up, food, transportation, interest rate, and something that is much less discussed: Rental.
It wasn't a surprise as since May, rental have been picking up very steadily. The reopening of the border after the pandamic not only receive alot of pent up demands from foreigners coming over to work. The rising construction cost could be one of the reasons that pushes the property market.
From Business Times, "Condo rental prices climbed for the 17th consecutive month to gain 2.8 per cent from April 2022, and 18.1 per cent on year." Students, workers and families alike continue coming in, as population in Malaysia and Singapore.
This brings up alot of tenant to negotiate a longer and more stable lease term (2 years), with a decent rental that is around the rate of the market rate, enabling them to get a better deal compared to shorter lease term (like 6 months to 1 year).
All in all, I urge tenants alike to think about the reason for rental, the length of lease and eventually what they are looking for to get a favorable rental terms in the long term.
Sources to Read:
- Business Times: Condo, HDB rents continue surge in May but volumes down year on year: SRX, 99.co
- Bloomberg: Renting a Home in Singapore Has Never Been This Expensive
- Straits Times: Home prices, rental rates likely to keep rising amid construction cost pressures