Analysts interviewed by Bloomberg said that it has turned into a tenant’s market. URA data shows that vacancy rates for private residential homes increased from 4.6 per cent in March 2010 to 7.1 per cent in Q3 2014, while Colliers auction data indicated a year-on-year rise in the number of auctioned apartments and houses, from 32 units to 159 units.

Mr Alan Cheong, Singapore-based Director at Savills plc, told Bloomberg that apartment vacancies may hit ten per cent by end-2015, significant considering vacancies rate peaked at 9.7 per cent during the 1998 Asian crisis.

With vacancy rates rising, tenants are having the upper hand when negotiating with landlords. Mr Sam King, a 29-year-old sales director at an aviation services company, has been renting a two-bedroom penthouse in Singapore for six years.

His rental was reduced by ten per cent for the first time in late 2014. He told Bloomberg that "It has turned into a tenant's market".

Taken from ST Property