Rental demand for private condos and HDB will see more upside in rental volume and rental yield due to two reasons. More upside for rental demand for condos and HDB flats is in the cards
There will be an expected ramp-up in foreign employment due to the opening of the economy and the Singaproe government push for One Pass work permit. The other push may be an unintended side effect of the new 15 months wait period introduced as part of 30th Sep property cooling measures.
Sustained hiring of foreign talents across many industries like IT, banking and healthcare were the main cause why there was a bump up in rental demand for both housing types. Specifically, many foreign workers earning about SGD 4,000 to SGD 8,000 might choose to stay at HDB flats rather than condos for reasons of safety in savings and cost management. In this high inflation period, that might be a wish choice.
More upside for rental demand for condos and HDB flats : The Causes
Huttons said 50% of companies in Singapore are planning to increase headcount in the last quarter of 2022. “This will continue to boost rental demand and rents for the rest of 2022,” said Huttons.
At the higher end, the new One Pass which targets high earners and high-achievers earning more than SGD 30,000 a month will ensure that high end condos are in high demand. Areas such as Orchard, Sentosa, Newton and Novena will enjoy the fruits of these foreigners. Investors might want take note of condos in this luxury segment.
