In 2022, Singapore’s private residential rental market saw a steep 29.7 percent year-on-year increase, causing concern among expatriates and foreign businesses.
According to the Urban Redevelopment Authority, this marked surge is up from the 9 percent increase observed in 2021.
Although 2023 predictions show a deceleration between 10 percent and 15 percent, businesses are feeling the impact.
A study spearheaded by the European Chamber of Commerce revealed that these rising rental costs have accounted for almost half of the increase in operational expenses, with residential rentals being the primary contributor.
Despite the high cost, Singapore’s status as a business hub remains intact.
Companies are hiring more locals to cut costs linked to expatriate compensation packages.
Businesses must remain adaptable to these evolving conditions, while also exploring fiscal and non-fiscal incentives offered by the government.