Prime property rental prices in Singapore rose 4.8 percent during the 12 months ending September 2011 – a significantly slower rise than the 17.8 percent recorded during the previous 12 month period.
The Knight Frank Prime Global Rental Index report, which looks at the top five percent of the residential market, placed Singapore in 10th place from the 16 surveyed cities. Geneva (18.3 percent), Nairobi (13 percent) and Hong Kong (10.6 percent) occupied the top three positions in terms of percentage increases.
The reported noted: “Asia provides a mixed picture with Hong Kong and Singapore recording more muted growth. In the past 12 months, annual rental growth has shifted from 18.1% to 10.6% in Hong Kong, and from 17% to 4.8% in Singapore. China’s main cities of Beijing and Shanghai by comparison are seeing the rate of rental growth rise, although it remains to be seen whether the government-imposed regulatory measures that are having the desired effect of softening prices will filter through to rents.”
Globally, rents for prime properties increased by 4.3 percent, representing the Index’s strongest annual performance since Q3 2008. The overall index is now 19 percent higher than its recessional low in Q1 2010, but still 18 percent lower than its pre-recessional peak in Q3 2008. The Asia Pacific region saw an average rise of 8 percent during the September 2010 to September 2011 period.
This survey was conducted prior to the latest round of cooling measures which were introduced by the Singapore government. Some analysts and industry watchers are expecting a rise in prime property rental prices as some foreigners choose to rent instead of buy to avoid the additional 10 percent stamp duty which was imposed earlier in December.
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