Positive rental momentum buoys home landlords but challenges loom
They may want to temper their optimism on rental outlook as supply of private homes is rising; their tax burden could also increase further
IN THE game Monopoly, players set out to own properties to grow rich by collecting rent from their opponents. Whether inspired by this game or by friends and relatives, many people here aspire to be a landlord. Own another home, besides the one that is owner occupied, and collect rent to fund retirement needs.
Private residential landlords can cheer that rents rose 9.9 per cent in Q4 2021 from a year ago, almost in line with the 10.6 per cent rise in private home prices according to data by the Urban Redevelopment Authority (URA). But rental rates of homes have generally grown at a much slower pace than prices.
Over periods of 5, 10 and 20 years to 2021, private home prices rose 26.5 per cent, 17.8 per cent and 107.2 per cent respectively while rental rates rose 9.3 per cent, 0 per cent, and 66 per cent respectively, based on URA's data.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Half of German housing construction firms short on orders
China’s housing mess finally hits Xi’s interest
A way to beat high mortgage rates is to take over someone else’s loan
With China’s property market struggling, India, South Korea and Vietnam are hot
Shophouse sales surge and at higher prices in Q1 as high-net-worth investors return: Knight Frank
Sony’s plans for Paramount include sale of famous studio lot