Mar 19, 2012 | Comments 0
In the second half of last year, rents in Singapore rose by five per cent, up from 4.4 per cent in the previous six months, according to the Savills World Class Cities Index.
Today Online reported that this growth rate in the six months through December was the second-fastest after New York’s 6.2 per cent rise. This was through the 10 cities monitored by Index.
“Rental levels are an indication of healthy market fundamentals in terms of occupier demand,” said Savills.
However, there were several new world cities that saw rental growth slip. The list included Hong Kong, Moscow, and Shanghai.
Savills also mentioned that in many of the world’s leading cities rental values are rising faster than underlying home prices.
In terms of rental costs, “Singapore ranked sixth after Paris, London, Hong Kong, New York, and Tokyo.”
The rising rental values are due to rising demand from domestic and international corporate tenants in an increasingly supply-constrained global residential real estate market.
“The introduction of additional stamp duty for overseas buyers in December 2011 is likely to further benefit the rental market (in Singapore),” stated Savills.