Singapore ties with New York in first position, at an 8.5% growth, while London follows just behind at 7.7% in the Savills Prime Residential World Cities Rental Index for the first half of 2022.
Despite rising interest rates and increased global uncertainty, prime residential rental growth outpaced capital value growth, increasing by an average of 3.1% across the Savills World Cities Index, set against a 2.4% increase in capital values.
Fuelled by a combination of factors: the return of international travel, continued purchasers ‘trying before they buy’, and greater prioritisation of the home thanks to flexible work patterns, rental price growth in most of the world’s major residential city properties continued to prove resilient.
Paul Tostevin, Head of Savills World Research says, “A lack of inventory will continue to fuel growth in the near term, especially for the type of residences prime tenants are demanding: centrally located, quality units with larger floor plates. For these properties, the Covid lockdown rental deal is definitely a thing of the past.”
Alan Cheong, Head of Savills Research & Consultancy Singapore adds, “Singapore is no different. The shortage of inventory arises from landlords repossessing their large luxury homes to enjoy the privacy as they continue to Work-From-Home. Rents for non-landed luxury residential units may end 2022 with a 20% Year-on-Year increase.”
Our Savills Research experts offer industry-leading advice and analysis into property market trends. Kindly refer to the two press release here (Savills Prime Residential Index: World Cities, Capital Values and Rentals) for further details.