Majority say home rents still too high: survey

Many said more can be done to keep rates from skyrocketing.

A recent survey by PropertyGuru showed 85% of renters in Singapore consider current rental prices as too high, prompting many to either tighten their belts or opt for cheaper options.

In its bi-annual Singapore Consumer Sentiment Study, PropertyGuru found 69% of the respondents expect rents to continue rising in the next six months, half of which estimated rents to grow by 5% or more.

More renters (37%) decided to cut their spending to pay the bills, while around 44% had to look for cheaper properties to cope with the rising cost of living.

Four in five Singaporeans believe more can be done to help ease the rental surge.

“Renters may see some reprieve in rent moderation given more completed units available for lease, especially toward the end of the year, providing tenants with more housing options,” said Tan Tee Khoon, PropertyGuru’s country manager for the city-state.

For instance, they see the Provisional Parenthood Housing Scheme voucher as helping renters to have a wider array of rental options for temporary accommodation.

Two in five of the respondents also agreed that the recent HDB policy tweaks will make HDB flats more affordable and accessible.

READ MORE: From ‘Mature’ to ‘Plus’: Singapore revamps HDB classification

Meanwhile, PropertyGuru said demand for residential properties remains robust despite the looming economic headwinds and high borrowing costs.

“Real estate has always been sought after as a hedge against inflation. In the long term, real estate tends to appreciate in value, outpacing inflation and resulting in capital gains,” Tan said. “Even during economic downturns, real estate may retain value and continue to appreciate as the economy recovers.”