PRIVATE home rents here are set to drop by up to 15 per cent next year as the reality of a slowing economy hits home. Property consultants say landlords are expected to become more flexible given factors such as ongoing job cuts.

In a report released on Thursday Savills Singapore said the onset of a technical recession here, coupled with a weaker employment market and slower expatriate arrivals, will contribute to the fall in rents. So far, the impact on the local rental market has been limited despite rents beginning to come off their peaks, it said.

Given that the full force of the financial crisis erupted in mid-September, the rental property market has yet to feel the full impact, it said. In terms of top of the market rents, known as prime rents, it expects a fall of 7 to 13 per cent next year.

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