Rental And Home Prices Rise Amidst Rising Construction Costs

Outlook On Rental And Home Prices On 4.5.2022:

Rental and home prices are rising and a large part is undeniably affected by construction woes. Two years since our Singapore’s circuit breaker lockdown on 7th April 2020 because of the covid-19 pandemic, a lot of disrupted work flow systems need time to revert to normalcy.

credit:straitstimes

• 1. Rising Cost for raw materials and construction labour have directly affected the UP TREND of the Singapore property market for the last 2 years of pandemic.
• 2. Rising costs explain why developments will be pricey and rentals are still much sought after with minimum building of new residential developments this year.
• 3. How local residential market comes from a Demand-Driven market from year 2021 to a Cost-Pressure market in the outlook ending year 2022.
• 4. Construction labour will only start to come back locally end of 2022 with the freeing of travel possibly from the Malaysian Causeway to allow more skilled workers to come back. Therefore, labour cost will take time to go back down.
• 5. Prefabrication building of new developments will be the government’s direction on new developments so as to have lesser labour intense work sites.

With construction costs rising, is it better to buy to wait then to wait to buy? Take your pick of various new developments around the island at our Singapore condominium website.

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Source:https://www.straitstimes.com/singapore/property-rental-prices-likely-to-stay-high-this-year-as-construction-costs-continue-to-rise