Singapore Expats

Why did rents prices spike?

Discuss about life in Singapore. Ask about cost of living, housing, travel, etiquette & lifestyle. Share experience & advice with Singaporeans & expat staying in Singapore.
Post Reply
canuck99
Newbie
Newbie
Posts: 3
Joined: Fri, 09 Jul 2010 6:28 am
Location: Canada

Why did rents prices spike?

Post by canuck99 » Tue, 13 Jul 2010 1:54 am

Hi all,

I was just wondering why housing/rental prices spiked so quickly a couple of years ago?

I noticed a couple of people had mentioned this a few times, and wanted to know if there would be any reason for the rents to plummet equally as quick?

User avatar
Mad Scientist
Director
Director
Posts: 3544
Joined: Thu, 03 Dec 2009 6:31 am
Answers: 4
Location: TIMBUKTU

Post by Mad Scientist » Tue, 13 Jul 2010 10:29 am

Like all product , it is all about supply and demand.

Do not hope too much about the price going to go down quickly. Usually the upswing is faster compare to the downswing. It defy First Newton Law
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

User avatar
Saint
Director
Director
Posts: 3505
Joined: Thu, 16 Jun 2005 5:19 pm
Location: The Juban Stand, Boat Quay
Contact:

Post by Saint » Tue, 13 Jul 2010 10:38 am

Greed

User avatar
nakatago
Moderator
Moderator
Posts: 8363
Joined: Tue, 01 Sep 2009 11:23 pm
Location: Sister Margaret’s School for Wayward Children

Post by nakatago » Tue, 13 Jul 2010 10:48 am

Saint wrote:Greed
and a lot of uninformed expats.
"A quokka is what would happen if there was an anime about kangaroos."

User avatar
Saint
Director
Director
Posts: 3505
Joined: Thu, 16 Jun 2005 5:19 pm
Location: The Juban Stand, Boat Quay
Contact:

Post by Saint » Tue, 13 Jul 2010 11:35 am

I'm expecting rental prices to drop over the next few months, especially in the East Coast, probably not in the next month as now is the yearly change over period when expats come and go or moving. Rental has to drop in East Coast as there has been quite a few major new developments that have just been released over the last month or so and they are all still virtually empty. The main reason being that the owners are asking silly money for rental and tenants are becoming wiser to the fact.

Only this weekend I had a "discusion" an agent offered to show me 2 units in a just released complex and the rental he wanted was so crazy I just ended up laughing.

Girl_Next_Door
Reporter
Reporter
Posts: 621
Joined: Thu, 28 Aug 2008 12:35 pm

Post by Girl_Next_Door » Tue, 13 Jul 2010 11:41 am

That's the thing about new properties.

Its substantially more expensive than something that is older, even when they are next to each other. The condo next to mine is brand new, but it cost twice my rent, and is only half the size of my place.

Go figure!

free8
Newbie
Newbie
Posts: 4
Joined: Tue, 13 Jul 2010 2:27 pm

Post by free8 » Tue, 13 Jul 2010 2:36 pm

Hope this helps to answer.
Singapore population growth rate:

2007: 4.3%
2008: 5.5%
2009: 3.1%

Singapore total population:

1999 3,957,700
2009 4,987,600

Addition for the last 10 years: 1,029,900 people, 26% up

This is one of the reasons why rental is at current level. Don't think it will drop with the increase in demand, and if more and more expats coming in. Unless you know lots of expats moving out? Asia economies growing steadily.

Another support comes from the very strong HDB rental. If HDB 2 bedroom can rent out at $1,700 to $2,000 per month, if you are a private property owner, would you rent out your 2 bedroom at below $2,000 (bear in mind private owners still have to pay maintenance fees of about $300 per month).

User avatar
Saint
Director
Director
Posts: 3505
Joined: Thu, 16 Jun 2005 5:19 pm
Location: The Juban Stand, Boat Quay
Contact:

Post by Saint » Tue, 13 Jul 2010 2:47 pm

Only a desperate agent would post something like that :roll:

free8
Newbie
Newbie
Posts: 4
Joined: Tue, 13 Jul 2010 2:27 pm

Post by free8 » Tue, 13 Jul 2010 3:02 pm

Sorry if I have step on your tail. I am not a property agent. No agent in Singapore will give us such statistics. Most of them only talk to sell by plucking bits and pieces here and there.

I am interested in properties and properties investment. At times also look into Singapore statistics. These are all fundamental of all investments.

x9200
Moderator
Moderator
Posts: 10073
Joined: Mon, 07 Sep 2009 4:06 pm
Location: Singapore

Post by x9200 » Tue, 13 Jul 2010 3:35 pm

You would need (at least) to show first some data regarding different sectors of the property market (i.e. HDB, private housing etc) and the inhabitants of the properties. How have it changed over the period. Without this your statistical figures proves nothing so let me agree here with Saint.

User avatar
nakatago
Moderator
Moderator
Posts: 8363
Joined: Tue, 01 Sep 2009 11:23 pm
Location: Sister Margaret’s School for Wayward Children

Post by nakatago » Tue, 13 Jul 2010 5:07 pm

[citation needed]
"A quokka is what would happen if there was an anime about kangaroos."

imogenben
Regular
Regular
Posts: 68
Joined: Sun, 09 May 2010 3:44 pm

Post by imogenben » Tue, 13 Jul 2010 5:44 pm

Too many of us coming to Singapore perhaps ?? :lol:

User avatar
ksl
Governor
Governor
Posts: 5989
Joined: Mon, 19 Jul 2004 8:52 pm
Location: Singapore
Contact:

Post by ksl » Tue, 13 Jul 2010 6:05 pm

My guess is the condo market priced themselves out, so expats started to move into HDB..HDB rental is pushed up by supply and demand too, and the 3 bedroom maisonette next to me is up at 2500! Some condo's may be forced to lower rents.

That's through an agent. Across the road is building work which is a pain, though they are not lowering the price, as the agent is sure it can move.

The expat intake is cut back by government!

scarbowl
Chatter
Chatter
Posts: 381
Joined: Mon, 19 Oct 2009 5:00 pm
Location: Singapore

Post by scarbowl » Wed, 14 Jul 2010 4:25 am

Saint wrote:Greed
Also called the "free market." Nothing wrong with supply & demand determining price.

User avatar
sundaymorningstaple
Moderator
Moderator
Posts: 40376
Joined: Thu, 11 Nov 2004 1:26 pm
Answers: 21
Location: Retired on the Little Red Dot

Post by sundaymorningstaple » Wed, 14 Jul 2010 10:47 am

scarbowl wrote:
Saint wrote:Greed
Also called the "free market." Nothing wrong with supply & demand determining price.
It's not supply and demand when people HAVE to have a place to sleep. Then they become captive buyers. Just look at what happens to fresh food prices just before Chinese New Year. Still plenty of supply, but all shopkeepers up their prices so you have no choice but to pay the price or go hungry. Supply & demand isn't when it's staples involved. It's called GREED.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

Post Reply
  • Similar Topics
    Replies
    Views
    Last post

Return to “Staying, Living in Singapore”

Who is online

Users browsing this forum: No registered users and 5 guests