Property prices stabilise in Singapore — relieving pressure on Global Mobility professionals and expat teams

When it comes to attracting international talent, Singapore ticks almost every box—from salaries and safety to transport and tax rates—it’s a wonderful place to work, live and thrive, with a vibrant mix of cultures and a superb social scene. But skyrocketing property rental rates in the city-state have created a quandary for Global Mobility professionals. Many have opted for lower-cost destinations in the region, while others have adopted a wait-and-see position as the post-pandemic situation unfolds.

In this edition of Reloverse Lite*, our team on the ground provides an up-to-the-minute update. It’s potentially a positive news story for individuals, international workers and the people responsible for relocating them.

According to Singapore’s Urban Redevelopment Authority (URA), average rental prices surged by 30 percent last year—the fastest rate in 15 years—while many leases rose by 50% or more. Already a hotspot with great trade links, education and healthcare standards, numbers making the move were swelled by over 200,000 expats and locals who left Hong Kong between early-2020 and summer 2022, seeking to steer clear of policy shifts in China and prolonged pandemic restrictions in the Special Administrative Region itself.

Despite choosing limited circuit breaker lockdowns and achieving a vaccination rate of 92%, construction work came to a near standstill, causing delays and increasing pent-up demand for property, as more professionals with spending power arrived over the South China Sea.

In Singapore, land and redevelopment space has long been scarce. Fresh market data and the experiences of Santa Fe’s local team now point to a levelling-off and normalisation of rental rates, relieving the discontent of staff and frustration of those in charge of moving them.

In Singapore, land and redevelopment space has long been scarce. Fresh market data, Government moves and the experiences of Santa Fe’s local team now point to a levelling-off and normalisation of rental rates, relieving the discontent of staff and frustration of those in charge of moving them.

Average rental rates remain high, but since the end of Q1/2023, availability across property websites has been increasing. This month is the peak time when expatriate employees relocate due to school term times, and many leave for their next assignment.

Islandwide, residential vacancy rates edged up to 6% in Q1/2023, suggesting building backlogs are beginning to clear. According to URA data, some 19,000 new private residential units and executive condominiums will be available this year. The Government of Singapore also took a significant step this week, announcing a sixth consecutive increase in the supply of private homes as part of its Government Land Sales programme. It will mean availability of private housing units, including executive condos is the highest in a decade.

Benjamin Barclay, Santa Fe’s Sales Director in South Asia said “Singapore’s fundamentals remain very attractive for businesses and staff. The commercial climate and predictability of policies make it a perfect host country for corporations and global workers. Aside from high rental rates, inflation has increased the cost of living, making it an expensive place to deploy staff. But as the supply of homes increases, prices are flattening”.

If you’re looking for an expert partner that understands property hotspots including Singapore, we would love to support you and your teams. Simply drop an email to reloverse@santaferelo.com and we’ll get back to you.

*Reloverse Lite is the compact companion of our Reloverse blog. Short yet substantial, packed with knowledge to equip and empower those navigating the world of international working.