According to SRX’s price index, there appears to be a divergence between the price and rental charts in Singapore.

Prices are climbing strongly while rentals seem to be wallowing in mediocrity.

A quick look at the price chart for non-landed sales transactions show a very sharp uptick as of Mar 2018.

The last time such a strong uptick was seen in the 1998 and 2008 recovery from the respective financial crises.

On the other hand, rentals of non-landed private properties have been terrible.

It has been on a downtrend since Jan 2013, only plateauing over the last year or so.

Why is there such a divergence?

One reason could be increased liquidity in the market from en-bloc sales, loose monetary policy by central banks, and foreign money flowing into Singapore, leading cash rich buyers to push up property prices.

On the other hand, the poor rental performance could be due …