(April 26): Singapore, which tied with New York for the city with the priciest rentals at one point last year, is expected to see some relief in residential rental costs ahead, as the city-state races to boost supply by completing construction that was halted during the pandemic.

Both public and private residential rental costs have soared since 2021, by 38% and 43%, respectively, according to data provided by the Ministry of National Development.

“The strong increases in rents for residential properties over 2022 reflect exceptional tightness in the markets brought about by the Covid-19 disruptions,” the Monetary Authority of Singapore said in its biannual Macroeconomic Review published Wednesday. “Rental pressures should ease given the relatively large supply of housing units that will be completed in 2023 and beyond.”

The country’s property market bucked a broader economic slowdown, as a supply crunch coupled with an influx of wealth into the financial hub drove up rental costs. The government points to a big boost in projected housing-unit construction this year as a cause for some relief in the price crunch.

Some 20,000 public flats and 19,000 private housing units are set for completion by year-end, with a combined total of 31,000 to be added in 2024.

Aside from the supply crunch, the report points to “continued robust employment and wage conditions” that have kept rent prices high. With some moderation in demand ahead, “further residential rent increases should ease in the coming quarters”.