Ms Song also pointed to ultra-high net worth individuals and families setting up offices or businesses in Singapore, saying that they have the ability and willingness to pay top rents for GCBs or prime bungalows in these locations.
“While some foreigners might already own a non-landed private property, they are unable to purchase a landed property as they are not Singapore citizens or PRs (permanent residents). As such, they might be willing to pay a premium to rent a spacious residence to accommodate their lifestyles,” said Ms Song.
She also pointed out that landed homes are mainly owner-occupied, so landlords have been able to command higher rents due to the limited supply of homes put up for rent.
There is also scarce new supply. For new non-landed private residential units, 51,703 homes are expected to be ready by 2027; in contrast, only 887 new landed houses will be built over the same period.
“While rents for condos are likely to stabilise … rents for landed may have room to go up further,” Ms Song said.
With the recent increase of additional buyer’s stamp duty for foreigners to 60 per cent, more foreigners might have to rent instead of buy, which could spill over to landed properties.
“Nonetheless, landed rents are expected to stabilise later this year on a weaker economic outlook and growing resistance to high rents,” she added.