Singapore: Ranked World’s 5th Most Expensive Place for Property Rental

According to a report by International human resources solutions provider ECA International; Singapore now ranks 5th most expensive city in the world for property rental based on rent for a two bedroom home. SSL Certificates – IT Solution Singapore

Why have Rental Prices Increased?
In Asia Singapore ranks as 3rd most expensive, Tokyo occupying the number 1 spot, followed by Hong Kong. The strong economic growth is the main factor in the increasing rental prices throughout Asia and Singapore saw a 15 per cent rise in 2010 to S$3,600 (US$2,810) for an average two bedroom apartment giving Singapore the new ranking. ECA International said compared to 2009, this put Singapore one place higher globally and two places higher in Asia.

This shift is in contrast to the report of 2009 when the rental price for a two bedroom property in Singapore fell by around 17 per cent due to the recession and an influx of new housing hitting the market. However in 2010 the pattern was reversed and rents increased by 15 per cent due to a recovery in house prices and an increased demand. ECA International also attributes the strengthening of the Singapore dollar to the increase in property prices.

World’s Most Expensive
Tokyo is now ranked most expensive in the world and in Asia. Singapore’s main competitor for expats; Hong Kong is ranked in second place where land is already at a premium due to lack of space.

Meanwhile the 2010 Census of population in Singapore found that more families are now occupying larger homes. Almost 25 per cent of households were found to be living in 3 room or smaller apartments in 2010 and 4 room apartments were the most popular at 32 per cent. It is suggested that the move to larger properties is as a result of increasing household incomes with the average monthly earnings increasing to S$5,000 in 2010.

Living and Investment Opportunities
Singapore is small in size but economically huge and it remains Southeast Asia’s most modern city, encompassing Malay, Arab, Indian, Chinese and English cultures and religions. Singapore is made up of over 50 small islands and the island of Singapore itself, the capital city is also called Singapore and covers around a third of the main island. Despite the recent increased rental prices, Singapore still appeals to many as a place to live or invest and because of its efficient government it excels in trade and tourism and has progressed greatly over the last three decades.

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