Singapore fifth most expensive place to rent a home, says study

Reports state that on an average, rental cost in Singapore stands at S$4.73 psf.

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HDB flats in Singapore
A view of a newly constructed public housing estate in Singapore Reuters

Singapore has been named the fifth most expensive place to rent a home in the world by a research conducted by UK-based property portal, Nested. Reports state that on an average, rental cost in the city stands at S$4.73 psf. While monthly rent for an individual amount to around S$1,985, for a family the cost is somewhat around S$3,766. This means a person needs to earn S$82,127 per annum to meet his rental cost, whereas a household requires an income of S$155,830. Thus, to be able to pay rent and sustain a proper living, a person has to earn S$82,127 per annum, whereas a household requires an income of S$155,830.

San Francisco sealed the top spot in the Rental Affordability Index, followed by New York, Hong Kong, and Dubai. The average rental cost in these cities ranges from £3.98 to £2.83. "The PSF rental price was calculated based on current market listings across 72 cities worldwide. Nested also used the Greater London Authority's guidelines for the minimum space recommended for a person (420 sq ft) and a family of four (797 sq ft)," the report further added.

Meanwhile, another report by Business Times revealed, "Rentals for non-landed private homes in Singapore rose in January 2017 over December 2016 amid an increase in leasing volume, while rents and leasing volume of Housing & Development Board (HDB) flats headed south over the same period." This was concluded in a survey released by SRX Property.

In January 2017, an estimated 3,813 non-landed private homes were rented reflecting a 5.8 per cent m-o-m increase from the 3,605 units rented in December 2016. Earlier, this month, the Urban Redevelopment Authority (URA) declared that the use of private property for an accommodation of fewer than six months will be legislated as illegal. Moreover, if someone rents out a private residence for less than six month, the culprit will be fine S$200,000 or be jailed for up to a year.

This article was first published on February 23, 2017