I am duly enlightened about the escalating rental situation in Singapore over the last 3 years when I came across this gem article written by Mr Colin Tan, head of research at Chesterton International in yesterday's TODAY.
The number of rental contracts peaked at 29,694 in 2005. The average for 2006 and 2007 is 25,173. There is thus a contraction of 15%.
The average cost of rentals rose by 15% in 2006 and 43% in 2007.
So what is the cause for this phenomenon?
Mr Tan concluded from his research that the rental spike is caused by the sharp contraction in supply due to en-blocing.
It is definitely not due to increased demands from executives coming to town working on the IR projects nor due to thousands of foreign students pursuing their education here.
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