Hong Kong residents moving to Singapore, snapping up rental homes

SINGAPORE — After eight years in Hong Kong, Jonathan Benarr is giving up that city for a new set of attractions — in Singapore.

“Hong Kong was always the fun place to be,” he told CNBC. “Singapore was where you went if you were a bit boring or you had a family.”

“Well, fast forward [two years], Singapore is a shining light,” he said. “You’ve just reopened the bars and the clubs, and people are being treated like adults.”

Stifled by strict Covid restrictions in Hong Kong, some residents from the Chinese financial hub have moved to Singapore, and there are signs that rental demand has gone up.

Private home rents climbed 4.2% in the first quarter of this year, compared to a rise of 2.6% in the previous quarter, according to the Urban Redevelopment Authority.

“Anecdotally, we know that perhaps there are some of those based in Hong Kong looking to relocate to Singapore, and this is contributing to the increase in rents,” said Leonard Tay, head of research at real estate agency Knight Frank Singapore.

To be clear, interest from Hong Kong is not the only reason for rising rents. Rental prices in Singapore were already moving higher during the pandemic due to demand from various sources, including young adults moving out of their parents’ homes and people looking for interim housing because of construction delays.

In Hong Kong, people arriving need to quarantine for at least seven days in a hotel and take multiple Covid tests. Singapore, however, has gradually dropped quarantine requirements since September. From Tuesday, vaccinated visitors will no longer need to take any Covid tests.

“[Hong Kong] just feels backwards,” said Benarr, who is group director of real estate at hospitality company The Mandala Group.

“What was once a progressive city, just feels like it’s no longer interested in being part of the international conversation,” he said.

The Briton is currently packing up his apartment in Hong Kong and moving to Singapore permanently.

In response to CNBC’s request for comment, Hong Kong’s Information Services Department pointed to a speech by Chief Executive Carrie Lam in late March, where she said Hong Kong needs to balance between virus risks and Covid measures.

This is to “enable the city to continue addressing the social and development needs of Hong Kong and the individual circumstances of our people,” she said.

“We couldn’t be too harsh with our people and the people’s tolerance has always been one of the factors that we need to consider in devising the best public health measure for Hong Kong.”

Visitor arrivals from Hong Kong to Singapore nearly doubled from January to February this year, according to Singapore’s tourism board.

That figure rose further in March, jumping more than 110% from February, official data…