Why did rents prices spike?

[canuck99]

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?

[Mad Scientist]

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

[Saint]

Greed

[nakatago]

Greed

and a lot of uninformed expats.

[Saint]

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]

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]

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).

[Saint]

Only a desperate agent would post something like that

[free8]

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]

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.

[nakatago]

[citation needed]

[imogenben]

Too many of us coming to Singapore perhaps ??

[ksl]

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]

Greed

Also called the "free market." Nothing wrong with supply & demand determining price.

[sundaymorningstaple]

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.