Rent-burdened in Singapore: Renters spend 44% of income on rent

Rent Cafe has just released their findings on rental affordability around the globe, which looks at rental prices from PricewaterhouseCoopers’ shortlist of the world’s best cities to work and live in. The good news? Singapore is ranked 2nd in the list of best cities for opportunities, which looks at 10 different factors including infrastructure, intellectual capital, sustainability and ease of doing business. The bad news? Turns out that Singapore is pretty rent-burdened, despite being a ‘City of Opportunity’.

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Rent-burdened in the garden city

Housing costs which exceed 30% of the household income are typically viewed as a red flag. According to the data presented, rent in Singapore takes up a whopping 44% of a household’s income each month. More specifically, Singapore’s median household income stands at US$100,500 per year, and the average rent per year at US$44,400, which translates into a rent-to-income ratio of 44%. In other words, this means that people who work in Singapore find themselves pretty rent-burdened.  

We’ve crunched the numbers – US$44,000 translates to approximately S$61,385 spent on rent per year, or S$5115 spent on rent per month. We don’t know about you, but that sounds pretty pricey to us. There are definitely more affordable options, though, so we’ve taken it upon ourselves to curate a list of apartments that you can rent for under S$5000 per month.

#1: 2-Bedroom unit in Costa Rhu condominium, $4800/month

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This isn’t the newest of condominiums, but it comes with all the usual bells and whistles that you’d expect, such as pools, clubhouses, gyms and more. It’s just a 10 minute drive away from the Central Business District! Bonus: you’ll also get a great view of the Kallang Basin, SportsHub and the fireworks on National Day! 

#2: 2-Bedroom walk up unit in Tiong Bahru, $4000/month

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If you have an old soul, and you’ve always felt like you were born in the wrong era, this charming pre-war walk up apartment will be perfect for you. Living in Tiong Bahru also puts you within walking distance of plenty of hipster cafes and gourmet restaurants!

#3: 2-Bedroom unit in Casa Fortuna condominium, $3180/month

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Prize convenience over everything else? Minimise your travelling time to town by renting a place in Toa Payoh – such as this well-kept unit in Casa Fortuna that comes with a sunken bath.

#4: 2-Bedroom unit in Lotus at Paya Lebar condominium, $3060/month

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Located within walking distance of Paya Lebar MRT, Lotus at Paya Lebar comprises of a fun mix of conservation shophouse and modern apartment units. Because you’re close to Geylang, where all the good supper spots are, you’ll never have to worry about going hungry at night!

#5: 3-Bedroom unit in Watertown condominium, $3500/month

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Watertown condominium, which is a mixed development, comprises of residential units as well as the megamall Waterway Point. This means that you’ll have easy access to 370,824 square feet of retail space featuring F&B outlets, retail stores, movie theatres, and other amenities.

We hope our pick of properties help you feel less rent-burdened in Singapore! Fingers crossed – and that you find the affordable rental unit of your dreams! In the meantime, be sure to check out our other articles on breaking lease and early termination of tenancy agreements, and how much income should you spend on rent in Singapore.

Data and chart courtesy of Rent Cafe

Check out other rental related articles here: 9 steps to take when you’re renting out a room for the first time and Renting your dream home: pros and cons of a live-in landlord

Find the rental home of your dreams today at Singapore’s largest property portal 99.co!