Why everyone should expect Singapore home rents to hold up

Demand is drifting from posh markets.

According to Savills, China should continue to face headwinds as it attempts to restructure the country and shift its focus to a more sustainable growth model led by domestic consumption.

This will adversely affect Singapore, whose economy is quite dependant on trading activity, especially with China’s market.

Here's more from Savills:

Nevertheless, market sentiment generally remained optimistic despite the economic uncertainties. Leasing demand is expected to retain its momentum and remain resilient until the end of the year, since job market prospects are positive.

Lease renewal activity might become more active in the next few months when existing tenants want to take advantage of the increasing housing stock available and the areas of the island seeing softening rents.

Going forward, rents for luxury homes may still see support until year’s end because much of the completed stock is in the form of unsold units still in the hands of developers who cannot lease them out unless they pay ABSD by performing an asset sale to an investment holding company.

Also, there is an increasing number of overseas nationals arriving on short-term assignments, paying slightly higher rents than those here on a longer term basis. For mass-market developments, rents could hold up as demand drifts from the high-end and mid-tier markets.