(March 16): Singapore pushed New York off the top spot for the strongest growth in residential rents in the last quarter of 2022, fuelled by a supply crunch and strong demand.

The city-state saw annual rents jump 28% in the quarter from a year earlier, according to a report by Knight Frank. New York followed with 19% growth, while London and Toronto took the third and fourth spots, according to the survey of prime residential rents across 10 cities.

Singapore’s soaring rents — driven in part by a lack of supply of new housing during the pandemic — have been a source of consternation for residents, sapping household budgets at a time when living costs are surging. New visa rules to attract foreign talent are likely to supplement tenant demand further.

Still, the city has 17,000 private homes that are set for completion this year, which could provide some relief to accommodation pressures, said Leonard Tay, Knight Frank’s head of research in Singapore.

Ranked at the bottom of the list is Hong Kong, where rents fell 6.4% year-on-year as international companies deferred expansion plans, according to the report. Demand from tenants has dwindled as people left the city during the pandemic.

While prime rents have remained robust across many global cities, the overall rate of annual growth is starting to slow, Knight Frank said.