rising interest rates resulting in higher mortgage loan rates
The supply of new builds has not been able to keep up with this strong demand. Many developments experienced construction delays due to the pandemic. The rental market has flipped to become a 'landlord's market' where landlords are able to fetch increasingly high rents on their properties.Firstly, the reopening of Singapore's borders following Covid-19 lockdowns has seen an influx of foreigners returning to Singapore for work, all of whom would be seeking housing arrangements.
As such, many home buyers deem property as a good investment as the high prices can be justified by the high rents. This has resulted in the demand for housing remaining strong.Singaporean home buyers are much wealthier than their counterparts in other parts of the world.