Rent increases of almost 21% in the first nine months of 2022 crushed Singapore’s tenants, and it appears that the suffering will continue this year.

Despite a slowdown, Bloomberg Intelligence analysts forecast that rents will increase by another 10-15% in 2023, powered by the nation’s ongoing economic recovery as well as solid household income and employment.

The country’s real estate industry has largely avoided a global recession brought on by high increases in interest rates because of an acute supply shortage and a wealth inflow into the financial center.

Data made public on Monday revealed that the scarcity of available housing caused home sales in December to drop for the third consecutive month and reach their lowest level in nearly 14 years.

Nevertheless, with 18,234 private residential units anticipated to be created this year, the market may already be beginning to moderate. That’s a little bit more than twice as many as were constructed the previous year.

Such an estimate is most in danger from potential economic slowdowns or rising unemployment. But so far, the rental rise in Singapore may be supported by the consensus expectation of more than 2% GDP growth, stable employment, and household income.

The most recent projections confirm an earlier study by Singapore-based real estate firm OrangeTee & Tie Pte, which predicted that private rentals would increase by 13% to 16% this year.

Residents are unlikely to be very encouraged by the lowering rate. In a recent YouGov poll, voters listed housing affordability and the cost of living as the top two concerns they want the government to focus on.

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