SG records 2nd highest increase in prime residential rents globally

In 1H23, rents grew by 13.6%.

Singapore ranked second amongst cities with the highest increase in prime residential rents globally in the first half of 2023 (1H23).

Data from Savills showed that in 1H23, prime residential rents in Singapore grew 13.6%. Year-on-year, rents grew 32.3%.

Singapore’s rental growth was slightly lower than Lisbon’s which ranked first in Savilss’ Prime Residential World Cities Index. Lisbon recorded a prime rental growth of 13.9% in 1H23. 

Whilst rents in Singapore rose by 13.6% in 1H23, Alan Cheong, executive director of Savills Research & Consultancy, said the local market is currently in a  “consolidation phase.”

“The rapid climb up in rents was unsustainable and was attributable to the delays in completion of units due to the pandemic measures. However, with close to 18,000 private residential units coming online this full year, and the weight of a slowing economy, we believe that some form of mild correction is expected in H2/2023,” Cheong said.

“Be that as it may, we believe that for the full year, prime luxury rents are still expected to rise about 15% YoY with the increase front-loaded to H1/2023,” he added.