Had an interesting discussion earlier this week....If you look at many markets around the world, tenants have many more "rights" than they do in Singapore...For example, there is often a "cap' on the % rent increase that an existing tenant can be forced to pay when they want to renew the lease...

IMO, the governement in Singapore does not want to cool the market too much (ie. by putting back in place those harsh 1997 measures...). However, they want to make sure that the rents do not become so expensive that Singapore starts to become less attractive for foreign talent.

So, my guess is that they will seriously consider a form of rent control...If they put a restriction in place (ie. landlord cannot increase residential rents more than 10-15% per year), then it would definitely help to make things more reasonable for expats and their companies. It would also probably have a mild (but not too serious) cooling effect on property prices (keeping annual increases in line with the rent increases) that would help to stabilize the market for the long term without having the risk of a drastic drop-off in prices.

Interested to see what our SSC members think of this?

Also interested to see how long before this idea is mentioned in the press? :)

Double post

Great question!

My observation is that the government is pursing a model of agressive development based on foreign money, but (rightly) beleives its madate to govern comes from providing well for the local population.

So my guess is that we will see a multi- tier markt:

1. Property prices which affects business costs like hotels and office buildings will as far as practical be kept reasonably low though land sales and other supply management policies. Kweck Leng Beng and a few other partially created the short office supply suitation by using white sites for residential units

2. Residential property prices will not be controlled per se, as the government is not concerned about prices for the elite, but the other 95% of the population. For the latter, if required the government will foster a more agressive approach to public housing. My pet theory is monster HDB developments (along the lines of 60 storey high, 1,500 units of 3-5 room flats and able to house 5-10K people) if required

3. Low and average income workers will be given increasing subsidies and special benefits which may cover housing costs (which can be as creative as cheap JTC land to help keep employment in Singapore)

From Residential properties prospective;

Although tennant have less right in Singapore but property owners in Singapore get the lowest yield from their properties.

Singapore Properties yield only 3-4% on average compare to 7% in Hong Kong and 9% in Phuket & Bali.

I do not mind giving them all the right if my yield is 7% or more.:)

The govt has not micro-managed free market practices for a long time. There is no shortage of apts available for rental.

All the feedback regarding expat high rents are concentrated on central areas only. Singaporeans have to stay as far as Jurong West, there is no basis to interfere in a free market simply to assist foreign talents to stay in central areas.

Even in today's Sunday Times, the quoted example was someone who insisted on living in Bishan. Also.. tenant nationality plays a big part in whether landlords make available rental units.

Foreign investors are very concerned about caps on how high their investment returns can achieve. Introducing rent control is regressive.

I agree that office rentals is a big concern right now, and it's a supply issue. The govt shd instead relook the policy of regional town centres, and facilitate more Grade A office spaces around MRT stations. For example.. another BFC ard bishan MRT station.

and 9% in Phuket & Bali.

sauce?

sauce?

What do you reckon is the fair yield for those places? What about Bangkok for luxury apartments? Btw how's the situation in Bangkok now?

The govt has not micro-managed free market practices for a long time. There is no shortage of apts available for rental.

All the feedback regarding expat high rents are concentrated on central areas only. Singaporeans have to stay as far as Jurong West, there is no basis to interfere in a free market simply to assist foreign talents to stay in central areas.

Even in today's Sunday Times, the quoted example was someone who insisted on living in Bishan. Also.. tenant nationality plays a big part in whether landlords make available rental units.



There are lots of empty apartment, so don't think supply outstrip demand.
For instance within CBD, I can see a lot of units in Arris, El Central are empty when I walk pasts Tanjong Pagar every day.

I doubt those who are real expatriates are affected by the rental, i.e, those with housing allowance paid by company for relocating from overseas to Singapore for a period.

Those who are affected are those foreigners who came to work in Singapore but taking a local package especially those annual basic salary less than S$100k. Most of them had been used to paying low rental in the pasts did not realized they had been enjoying a cheap rental.

Singapore property market had gone through almost 10yrs downturn and lagged behind other cities, so it just make sense rental increase to match capital appreciation.

A lot of Singaporean who earn more than annual basic pay of $100k are staying in HDB or suburban private apartment as well.
I believe people just need to adjust their expectation and move out from core central or central districts to suburban.

In fact Singapore has attracted a lot of middle skilled foreigners into working in Singapore due to MNC setting up regional and global centres in Singapore. Those earning 4 digit monthly pay should consider renting HDB rather than private apartment.

All the feedback regarding expat high rents are concentrated on central areas only. Singaporeans have to stay as far as Jurong West, there is no basis to interfere in a free market simply to assist foreign talents to stay in central areas.


the counter argument to this is that the adjustment of having ppl relocate from more expensive central areas to less expensive areas should be gradual, so as to minimize disruption - which creates both economic and social cost.

Example (not real, but I know many similar cases):

- Expat husband with wife (not working) and one kid (school age)
- Salary roughly $10k/month
- Currently paying $4k for 3BR condo in D. 9, 10, 11, or 15 (2yr lease signed in 2005)
- Owner is increasing rent to $6.5k/month (62.5% increase)

Expat is an experienced professional with a regional role in an MNC with responsibilities in a few countries. This job would be very costly for the company to re-hire (even if they find local talent, must still pay signing bonus and / or HR recruitment fee).

This expat could afford to pay 10-20% more but not the full increase. They are now planning to leave Singapore as the high cost and inconvenience of living farther away from children's school is not worth it (if they had a year to search they would consider it, and might possibly buy a flat for own stay, but their landlord is forcing them to pay the higher amount or move out within 30 days).

All I'm saying is that, by limiting the annual increase in a tenant's rent to 10-15% p.a. (so that higher market rents can be phased in over 1-2 years) will certainly allow the Singapore market to adjust at a more moderate, less disruptive pace (giving enough time for existing expats to find suitable replacement housing (and schools) for their families.

Like it or not, health of Singapore economy depends on keeping as much foreign talent as possible....i am personally in favour of most "free market policies" however in this case i am truly worried that Singapore will be shooting itself in the foot in the short term if it does not heed the rental escalation cost issue...(but, then again, i am often wrong so maybe nevermind... :lol: :lol: )

Like it or not, health of Singapore economy depends on keeping as much foreign talent as possible....i am personally in favour of most "free market policies" however in this case i am truly worried that Singapore will be shooting itself in the foot in the short term if it does not heed the rental escalation cost issue
I would tend to agree on the above.....
Last year when Dubai rentals went the way they are here, the Govt intervened and capped increases to 15% - else Dubai was fast losing the attractiveness as a destination for employment - because each prospective employee was then building that into his package negotiation and then the businesses were unable to wear it and hence not get people.
I think we are close to such a situation emerging here and I speak that withe a certain degree of first hand experience. I happen to have got elevated in my company and hence it means a pay hike - guess what - the pay hike per annum is say X $ - howver, the rental hike that I ma going to have to wear as I renegotiate my tenency is X $ + 17k$ . So effectively, after an elevation I am outof pocket by $17 k - and thats after downsizing the apartment !!! I think I am fortunate and there are others who are far worse off. The same goes for office rentals - by the way , some friends weretelling me that their firms are seriously thinking of relocating some of small hubbed specialist regional staff to BKK or KL [ teams of about 10 ] Eg - Compliance Officers for the region or Quantitative Developers who support the SEA region .

I think the enbloc fever has to be controlled as well. If more residentials are being demolished over next 2 years, the rental issue will continue to explode due to the exponential reduction in supply.
- May be govt will impose temporary freeze on enbloc till Dec 2008 until the major new supply kicks in 2009.
- Govt had just imposed temporary freeze on office to residential conversion until Dec 2009 when MBFC kicks in 2010. So similar may happen to enbloc to stabilize the residential rental hike issue.

Up and down everybody tell gahment should do this should do that.Gahment headache man.Listen to those in favour of cooling the market and the opposite camp feeding the fire.Aiyah, if this is a crush and not the boom everybody will be talking cock about what is the gahment doing to prop up the market.Just let the market decide.Let the rich prosper ,let the poor learn.
This is a capitalist society.4 legs is not better than 2 legs.

Just a thought;

If the property market make a U-Turn now, a lot of those eb-bloc property will become empty land.

Market is now flooded with un-sold completed properties which are asking for higher price as compare to the launch price.

Waterplace developer now asking for $1200 psf for a non-seaview unit.

I think the enbloc fever has to be controlled as well. If more residentials are being demolished over next 2 years, the rental issue will continue to explode due to the exponential reduction in supply.
- May be govt will impose temporary freeze on enbloc till Dec 2008 until the major new supply kicks in 2009.
- Govt had just imposed temporary freeze on office to residential conversion until Dec 2009 when MBFC kicks in 2010. So similar may happen to enbloc to stabilize the residential rental hike issue.

An alternative to complete freeze might be to temporarily increase the minimum age of properties eligible for en-bloc to say 25 yrs until it the market stabilises and then slowly decrease it to 20 yrs, 15 yrs , etc.

An alternative to complete freeze might be to temporarily increase the minimum age of properties eligible for en-bloc to say 25 yrs until it the market stabilises and then slowly decrease it to 20 yrs, 15 yrs , etc.

I think govt will not go the harsh way to freeze complete enbloc, but will definitely tightened the policy after the legal review that's going on after public feedback. This will make the enbloc more difficult going forward, and in a way help to slow down the depletion of supply due to enbloc.

Given the recent large publicity of complaints from expatriates or foreigners working here on rental hike, the govt used to be business prone is likely to do something to help, but don't think will be a harsh one to affect the property boom. Govt will not be harsh as long as the property boom is not due to over-speculation at the mass market causing too much bubble.

I think govt will not go the harsh way to freeze complete enbloc, but will definitely tightened the policy after the legal review that's going on after public feedback. This will make the enbloc more difficult going forward, and in a way help to slow down the depletion of supply due to enbloc.

Given the recent large publicity of complaints from expatriates or foreigners working here on rental hike, the govt used to be business prone is likely to do something to help, but don't think will be a harsh one to affect the property boom. Govt will not be harsh as long as the property boom is not due to over-speculation at the mass market causing too much bubble.

:)

Firstly.. there is no supply issue for residential property. It's simply a matter of pricing. The latest wave of foreign investment in Sg was not based on the premise that Sg offerred the lowest cost of operation. It was about good infrastructure, stable political and economic environment, etc etc.

If the rental market has outpriced itself, then let the market adjust itself.

Enbloc policy is not just about supply. It's also about urban renewal. Will the next wave of foreign investors want to rent/ invest in 30 yr old properties? Are the existing apts sized/designed correctly for the future?

Just look at HDB flats.. lifts not stopping at every floor, electrical current limitations. Enbloc is necessary to move forward. If there are buyers, there will be sellers. It's simply about price.

I think govt will not go the harsh way to freeze complete enbloc, but will definitely tightened the policy after the legal review that's going on after public feedback. This will make the enbloc more difficult going forward, and in a way help to slow down the depletion of supply due to enbloc.

Given the recent large publicity of complaints from expatriates or foreigners working here on rental hike, the govt used to be business prone is likely to do something to help, but don't think will be a harsh one to affect the property boom. Govt will not be harsh as long as the property boom is not due to over-speculation at the mass market causing too much bubble.



I agree that the government should adjust its policy to manage rental price to keep Singapore competitive but it should not interfere with the free market. It could release more HDB for rental or release more land for condo development. However, it should not cap rental price or growth.

If I know an expatriate earn $150k-200k pa and want to stay in the Core (CBD, Orchard area, etc.), I will tell him/her off in the face. Why should he/she stay in the Core while I stay in the Suburb?

To me, the Core is meant for expatriate with at least $300k pa. Otherwise, move out of the Core!

Why should we stay in HDB flat with $100k pa while they stay in a condo? It doesn't make sense.

I welcome foreign talents and they are important to us. However, they should be realistic to accept that all are us should be treated equally. At the end of the day, it must be a win-win for all.

There are lot of condo outside core area for rent. It is whether the tennants want to sacrifice some time to travel to & fro......

IIf I know an expatriate earn $150k-200k pa and want to stay in the Core (CBD, Orchard area, etc.), I will tell him/her off in the face. Why should he/she stay in the Core while I stay in the Suburb?

To me, the Core is meant for expatriate with at least $300k pa. Otherwise, move out of the Core!

Why should we stay in HDB flat with $100k pa while they stay in a condo? It doesn't make sense.


sorry to say but this is a very ignorant way of thinking....not to flame you personally, just want to point out

1. Moving out of the core is absolutely a good idea - but is it fair to ask a family to do so on 30 days notice? You might think that expats will do so without question, but most of them also have the choice to move back home....If you are an expat, will you bother to move out to a suburban location and downgrade your lifestyle or will you just move home, where you can easily live a higher lifestyle? Why do you want to stay in Singapore?

This is the real problem that government must deal with....You might think in terms of black and white "fairness", but reality is not so simple as it is a fact that Singapore will suffer if a large number of these expats and their companies move out of Singapore...

2. Also, on the topic of fairness.....Singapore government policy already "forces" expat to stay in private condo (not allowed to buy landed property - with few exceptions - and not allowed to buy HDB). So, while you might consider that we are living here in a "free market", it is not exactly true......If you want foreigners to stay in HDB then you should support government giving them the right to buy any property they want (not just certain properties in certain areas...). This will be truly free market...

3. By the way, we are not just talking about the Core here....3BR condos in Redhill are also renting over $5k/month already...the point about controlling rental increases is an island-wide issue (and will become even more serious in the next 2 yrs).

I don't know about you, but to me the key question is: if you limit annual rent increases to 10-15% p.a., who do you harm? Maybe some investors like you and me might complain, but even these people are still able to rent their units at higher prices.....So, there is no real social or economic cost to anyone...

On the other hand, if you don't have such a measure, IMO the downside risk is much greater...

sorry to say but this is a very ignorant way of thinking....not to flame you personally, just want to point out

1. Moving out of the core is absolutely a good idea - but is it fair to ask a family to do so on 30 days notice? You might think that expats will do so without question, but most of them also have the choice to move back home....If you are an expat, will you bother to move out to a suburban location and downgrade your lifestyle or will you just move home, where you can easily live a higher lifestyle? Why do you want to stay in Singapore?

This is the real problem that government must deal with....You might think in terms of black and white "fairness", but reality is not so simple as it is a fact that Singapore will suffer if a large number of these expats and their companies move out of Singapore...

2. Also, on the topic of fairness.....Singapore government policy already "forces" expat to stay in private condo (not allowed to buy landed property - with few exceptions - and not allowed to buy HDB). So, while you might consider that we are living here in a "free market", it is not exactly true......If you want foreigners to stay in HDB then you should support government giving them the right to buy any property they want (not just certain properties in certain areas...). This will be truly free market...

3. By the way, we are not just talking about the Core here....3BR condos in Redhill are also renting over $5k/month already...the point about controlling rental increases is an island-wide issue (and will become even more serious in the next 2 yrs).

I don't know about you, but to me the key question is: if you limit annual rent increases to 10-15% p.a., who do you harm? Maybe some investors like you and me might complain, but even these people are still able to rent their units at higher prices.....So, there is no real social or economic cost to anyone...

On the other hand, if you don't have such a measure, IMO the downside risk is much greater...

Q1. Is it fair to ask a family to leave in 30 days?
A1. This question is related to the Ts & Cs in the contract - not the economy, the landlord or the host country. Therefore, it is fair for the not-so-wealthy expats to stay out of the Core.

Q2. To downgrade here or go home with better lifestyle?
A2. Who says go home means better lifestyle? I totally disagree with this assumption.

Q3. Will MNCs move out?
A3. No because the wealthy expats stay in the Core, the poorer expats stay in HDB flats, every expats have a roof.

Q4. Why not allow expats to buy HDB flats?
A4. These subsidised flats are built for the citizens. If this is allow, why bother to have HDB in the first place. We can simply build apartments for both the citizens and the expats to buy.

By the way, I am not a landlord.
There is nothing wrong with unrealistic asking rental price. In the market, if your asking price is unrealistic, nobody will buy from you.
Asking must meet bidding. Supply must meet demand.
The real issue here is the expats have wrong expectation.

2. Also, on the topic of fairness.....Singapore government policy already "forces" expat to stay in private condo (not allowed to buy landed property - with few exceptions - and not allowed to buy HDB). So, while you might consider that we are living here in a "free market", it is not exactly true......If you want foreigners to stay in HDB then you should support government giving them the right to buy any property they want (not just certain properties in certain areas...). This will be truly free market...

3. By the way, we are not just talking about the Core here....3BR condos in Redhill are also renting over $5k/month already...the point about controlling rental increases is an island-wide issue (and will become even more serious in the next 2 yrs).

I don't know about you, but to me the key question is: if you limit annual rent increases to 10-15% p.a., who do you harm? Maybe some investors like you and me might complain, but even these people are still able to rent their units at higher prices.....So, there is no real social or economic cost to anyone...

On the other hand, if you don't have such a measure, IMO the downside risk is much greater...

There is no policy that prohibits renting a HDB flat to foreigners. Thus, there is no basis to say that foreigners are forced to live in private condos or only in certain parts of Sg. Foreigners purchasing HDB flats is a seperate discussion due to the subsidies issue.

BTW, Redhill IS considered a central area. It's even closer to town compared to Holland Village.

Capping rental increases is not feasible. If I were a landlord, I rather not renew the tenancy. Also.. if interest rates rise, that means I cannot adjust accordingly, and must subsidise the tenant?

Without such a measure, at most units become empty, and put on the market. The market will price the property according to the demand, and that does not mean a sure collapse.

There is no policy that prohibits renting a HDB flat to foreigners. Thus, there is no basis to say that foreigners are forced to live in private condos or only in certain parts of Sg. Foreigners purchasing HDB flats is a seperate discussion due to the subsidies issue.

Understand what you are saying, my point was simply to say that Singapore is already not a "free market". I do not specifically advocate any particular policy, but was just pointing out the irony that many ppl will argue "free market" is good in some cases but not in others...


BTW, Redhill IS considered a central area. It's even closer to town compared to Holland Village.

By Central I meant prime D. 9, 10, 11....perhaps a better example would be the same $5,000+/month for 3BR 10 yr old condos in some other area (which there are many examples)


Capping rental increases is not feasible. If I were a landlord, I rather not renew the tenancy.

It has been feasible in a wide variety of international markets, so I'm not sure that your reasoning is clear when explaining why it cannot be a good temporary measure in Singapore?


Also.. if interest rates rise, that means I cannot adjust accordingly, and must subsidise the tenant?


I don't see interest rates rising much during the next 12-24 months (ie. the likely duration of any temporary adjustment period). Perhaps if this is a major concern, it would be quite easy to accomodate for this in the wording of the regulation...


Without such a measure, at most units become empty, and put on the market. The market will price the property according to the demand, and that does not mean a sure collapse.

You are not considering the impact of i) those expats who choose not to renew their contracts in singapore and go home due to rising costs for their family ii) those expats who choose to leave singapore instead of bringing their families over and staying longer and iii) those companies who will relocate jobs and / or not add new jobs in Singapore in the short term

Even if only 10% of cases fall into i) ii) or iii) above, this represents possibly 50,000-100,000 people. I personally think that the negative impact on the economy would be far greater than the increased rent gained by landlords in a "non capped" environment.

So, until now, most of the reasons stated by people are generally related to "landlord profit maximization", which is fair.

However, in Singapore, we all know that the government usually takes a different view - and profit can sometimes be secondary to "greater economic good" if they see "bigger objectives" at risk.

Does anyone have any reasons for "greater economic good" that a temporary limit on % rent increase might not be considered by the government?

Interesting debate happening here.

I agree with what Freelance has said. For the greater good of the economy, a TEMPORARY cap should be put on rental increase IF NECESSARY. However this policy has a lot of loop holes when the market is very hot. As Yoongf has pointed out, why renew at X + 15%X rate when one can get a new tenant in at X + 50%X rate? This policy will not protect the tenant in such situations. It is in such situations that the tenants need the most help.

Landluv has pointed out in one of his earlier post, Singapore is in a midst of a renewal cycle. Changing it from a bottom half 1st world country to a top half 1st world country.

IMHO, the current rent increases can be justified. Singapore was underpriced before.

Some have been forced to downgrade or buy
AsiaOne
28 May 2007

Rents for private homes are rising so fast that some expatriates are facing hikes of 50 to 100% or more when their leases are up for renewal.

Many have been forced to rent homes outside of prime districts as well as in HDB estates. Others are finding it cheaper to buy then to rent.

Official data shows that rents of non-landed homes rose by 8.1% in the first quarter of this year, up from a 5.3% rise in the fourth quarter of last year. Overall, residential rents are still about 29% below the 1996 peak. But market watchers say the figure reflects the situation in the whole market and not just recent renewals or prime district deals.

For example, asking rents at Ardmore Park in the Orchard Road area have shot up to between $17,000 and $18,000. The price range about two years ago was $ 14,000 to $15,000.

The huge increases, fuelled by strong demand and a tight supply resulting from the many collective sales, started only in January, say property agents.

Foreign companies are also in a bind. Apart from higher rentals for office space, they may find it harder to recruit or keep expat workers. Costs will rise if they increase housing allowances, but expats may leave if companies do not.

The Straits Times today reported that an Australian who faced a 66 per cent hike for his 1,250 sq ft apartment in Newton recently moved into an HDB flat, preferring that to a condo unit in poor condition. He now pays $1,500 for a five-room flat in Ang Mo Kio.

Despite this, some are having problems finding a flat due to picky landlords.

One expatriate said that when he goes to view a flat, there would be at least 10 other expats looking at the same unit at the same time.

The situation has prompted Cara Killham and her husband, a British teacher, who came here eight years ago, to buy their own place after the rent for their Clementi condo became too extreme. The couple recently bought a 1,600 sq ft unit in Diary Farm Estate, off Upper Bukit Timah Road.

The soaring property prices have also made it difficult for buyers as many proper sellers keep changing their minds as they hold out for more cash.

The New Paper today gave an example of an IT consultant who tried to buy a condo unit but was unable to clinch the deal because the owner changed his mind and upped the asking price.

Ryan Lim wanted to rent a unit in a condominium in the east and agreed on the amount set by the owner. But the owner changed his mind and wanted to sell it instead for $430,000.

Mr Lim and his wife agreed but the owner changed his mind and decided not to sell after all.

The couple then found a 1,500 sq ft unit in the same development and was willing to match the asking price of $550,000, but the owner upped the price to $570,00. A similar-sized unit was sold for $485,000 last month, said The New Paper.

He has given up on the second property and is now in discussions over a third one in the same estate.

Said an exasperated Mr Lim: "It is really frustrating looking for a place now. It seems like the sellers are either not sincere about letting go of their place or they're just plain greedy."

For many years in the recent past, and also currently still for many properties, the rental is not even sufficient to cover interest payments on the capital + property tax + maintenance, so effectively, landlords were subsidizing tenants. Therefore, I think in a way, tenants have had it good for many years, so they should adjust their expectations now that rentals are going up. Think of it from the landlord's point of view. HK is far more expensive in terms of rentals and there is no shortage of expats. Ultimately, market forces should decide. Why should landlords continue to subsidize tenants to attract more lower income expats? If rentals in the core are such that only high value jobs can support them, then the government should be focusing on trying to create more higher value jobs.

if a rental cap is used maybe 10-15% increase per year, can the same be applied when rental market head south in bad times?

he/she can choose to move to a smaller apartment in the core area, move out of core area or choose to buy an apartment. they hv a choice. surely they can find an apartment that will meet their budget.

let market forces dictate the rental. once supply catches up with the demand, equilibrium will happen.

if a rental cap is used maybe 10-15% increase per year, can the same be applied when rental market head south in bad times?

he/she can choose to move to a smaller apartment in the core area, move out of core area or choose to buy an apartment. they hv a choice. surely they can find an apartment that will meet their budget.

let market forces dictate the rental. once supply catches up with the demand, equilibrium will happen.

Let demand & supply decide the rental.

If the landlord price their rent out of market, they will be difficlt to rent their apartment out.

If they push their rent up 200% or 300% and still their is people renting their apartment, you cannot say the landlord is wrong. At least they are pricing correctly.

Do not forget during the property slump period, landlord was squeeze for receiving lower rent, why that time no one suggested a cap in the drop of rental.

I remember my friend almost go bankrupt because of rental drop, now he is back with a vengence.:)

Let demand & supply decide the rental.

If the landlord price their rent out of market, they will be difficlt to rent their apartment out.

If they push their rent up 200% or 300% and still their is people renting their apartment, you cannot say the landlord is wrong. At least they are pricing correctly.

Do not forget during the property slump period, landlord was squeeze for receiving lower rent, why that time no one suggested a cap in the drop of rental.

I remember my friend almost go bankrupt because of rental drop, now he is back with a vengence.:)


I am not a landlord. Rental increase does not benefit me.

I may sound arrogant/nasty. However, the truth is some (or most?) of the expats have the wrong expectation that Singapore is a 1st-world with 3rd-world lodging cost. I wonder where on earth can you find this kind of place?

They can threathen to leave. Are you sure the rest of the 1st-world locations have lower lodging cost than Singapore? If they leave, others, who are more realistic, will fill their vacancies.

There are enough apartments for rental on this island. They should not give us the excuse they can't find a roof. They can approach any of the forumers here. We surely can help them.

I am all against capping rental. Haven't HDB relaxed its rules on renting out its flats? Let the invisible hand decide. No offences to anyone but the expats have been spoilt with low rentals for the longest time. If the rental is too high, then move further away from the central core... what's the problem and why complain? If more expats leave Singapore and fewer expats come here to work because of high cost of accommodation, the price will adjust itself.

Its Economics 101... the increase in rental is a result of demand and supply. Like what shctaw said, if landlords raise their rent by 200% or 300% and people still bite, are the landlords wrong? But then again, whether you are for or against capping rental increase is really just a question of whether you are the landlord or the tenant. 'Nuff said.

If more expats leave Singapore and fewer expats come here to work because of high cost of accommodation, the price will adjust itself.

That's true exactly what little pig says....the real question is whether that "adjustment" period is fast enough that no harm will come to the economy. Long term, my own personal opinion is not much negative effect as long as taxes are low enough to keep a competitive advantage over other markets and global growth stays strong. Then again, I have heard ppl in H.R and management of various MNCs argue the opposite and they are the ones holding the cards to bargain with the govt...so, we all wait and see...

Anyways, I knew my comments would stimulate some strong feedback...haha. Just wanted to test the climate and see exactly how strong. As an investor, of course I have no problem with the current rental situation either...

Let the invisible hand decide.

One of the big attractions of Singapore as an investment and asset mangement base is (apart from a few well known and very transparent policy exceptions like HDB and COEs) it lets the free market decide prices.

This is a key competitive advantage of Singapore. To start interfering with the free market through price controls would be damage our reputation and make us look more like Mainlaind China and less like HK....

One of the big attractions of Singapore as an investment and asset mangement base is (apart from a few well known and very transparent policy exceptions like HDB and COEs) it lets the free market decide prices.

This is a key competitive advantage of Singapore. To start interfering with the free market through price controls would be damage our reputation and make us look more like Mainlaind China and less like HK....

Last time they intervene with the property market, so many people go bankrupt and our economy stick to the ground for 6-7 years.

At current level the market is still slightly below our market peak at 1996-7.

We now have 2 Casino, F1 night race, WTO meeting, Head office of Private Banking, Park connection accrose Singapore, Water parks all around Singapore, Revamp of our Orchard Road shopping, Art festival, vision for 6.5 million population, Bio-tech center, Regional headoffice of major firm.

If the rent is really so high they should leave Singapore, but they are still sticking around or buying into property for own stay because of job opportunity or Business venture.

We still have a long way to go, some might say we are half way there. For those who is expecting a correction or clash would be making a big mistake.

Last time they intervene with the property market, some many people go bankrupt and our economy stick to the ground for 6-7 years.

At current level the market is still slightly below our market peak at 1996-7.

We now have 2 Casino, F1 night race, WTO meeting, Head office of Private Banking, Park connection accrose Singapore, Water parks all around Singapore, Revamp of our Orchard Road shopping, Art festival, vision for 6.5 million population, Bio-tech center, Regional headoffice of major firm.

If the rent is really so high they should leave Singapore, but they are still sticking around or buying into property for own stay because of job opportunity or Business venture.

We still have a long way to go, some might say we are half way there. For those who is expecting a correction or clash would be making a big mistake.

I cannot disagree with you.

One of the big attractions of Singapore as an investment and asset mangement base is (apart from a few well known and very transparent policy exceptions like HDB and COEs) it lets the free market decide prices.

This is a key competitive advantage of Singapore. To start interfering with the free market through price controls would be damage our reputation and make us look more like Mainlaind China and less like HK....

A bit off topic, but actually I kind of think the opposite....

To me, one of the big attractions of Singapore as an investment and asset management base is not the fact that it is a pure "free market". Instead, the opposite is true: people are attracted here, because they know that the government manages the market to ensure an environment conducive to long-term stable and healthy growth.

In other words, we are "pro business" as long as business is moving in the "right direction" for the betterment of Singapore....This is a Key difference.....

If the market was a "free for all" (ie. Hong Kong) you can make a bigger fortune but you can very easily lose it and no one will help you...HK is known for very high "up cycles" and very low "down cycles". I think, in Singapore, the government intervenes when it thinks it is necessary....sometimes this means people will make a bit less money, but it will balance out over the long term as hopefully our economy will not suffer the same drastic downswings that are typical in HK every so often....A lot of businesses (private banking, biotech, aerospace, R&D) will appreciate this environment as it is more stable for making long term capital and personnel investments.....This is why Singapore has been doing so wel attracting them the past 5 years...

I understand why many Singaporean landlords feel happy to see their rents go up, but I think one of the points being made here is that a SUDDEN and MASSIVE increase in rents is hardly conducive to making Singapore a stable and inviting environment for expats. Of course rents must rise as the economy continues to grow, but lack of intervention during the boom in the past year has led to a sudden and serious housing crunch that has upset a lot of expats. People make life plans you know.. they chose careers, moves, family relocation, etc. To have your main source of expense - rent - go up by 60% in one year is a life altering problem. It's not like the price of milk increasing by 60%.

No one wants to interfere in the property market needlessly, but the Govt ought to make a concerted effort to manage the growth more proactively. MODERATION is the key point. Slow, steady and consistent, not zoom, boom and collapse. Hence the interest in rent control amongst some people.

And it is all fine to bash expats and want them to live in the suburbs or leave, but when car ownership is expensive, it is not unreasonable that they would want to live in D9, 10 and 11. All those claiming that expats should go away if they don't like it, fail to understand that there ARE other places where expats can go and have a much better life than in the suburbs of Singapore. Singapore is only attractive to them if they can live in the city center relatively speaking. Suburbs would be fine too if they could afford a car, but in the absence of that -- it becomes relatively unattractive.

And it is all fine to bash expats and want them to live in the suburbs or leave, but when car ownership is expensive, it is not unreasonable that they would want to live in D9, 10 and 11. All those claiming that expats should go away if they don't like it, fail to understand that there ARE other places where expats can go and have a much better life than in the suburbs of Singapore. Singapore is only attractive to them if they can live in the city center relatively speaking. Suburbs would be fine too if they could afford a car, but in the absence of that -- it becomes relatively unattractive.

Honestly speaking, Singapore has one of the best public transport system. Look at New York train stations, you will vomit on the condition and the service if compared to Singapore MRT. Singapore is also too small, i.e. Pasir Ris or Jurong are only 30min to Downtown by MRT.

Car price has gone down tremendously if you compared to 3yrs ago, despite COE went up recently but no where to compare when $30k-$50k were norm in the past. Expatriate can buy relatively good second hand car at very cheap price if they chose to as car in Singapore are well maintained ( & reason why scrap car export to other countries are so welcome, including Australia ).

I could not agree living in Central Core in D9,10,11 is a must for expatriate. If you look at Hong Kong, Tokyo, how many people stay around Central ? Look at East Coast, Jurong East, Clementi, Tampines, Toa Payoh, etc,.... they are nice and convenient place to live as well compared to suburban areas in other regional cities in Asia.... even Geylang is not bad, though there stay a lot of other expatriate class which is not within our topic of discussion....but you can compare to Mongkok in Hong Kong though...still not bad a comparison.

I understand how the tenants feel when they experience a SUDDEN and MASSIVE increase in rents. Yes, its going to upset many expats. But this SUDDEN and MASSIVE increase in rents just shows how much depressed the rents once were... I have seen rents plummet to scary lows until landlords were forced to sell their loss-making properties... some were even declared bankrupt... the rents were not even able to meet the mortgage interest payments. For a while, expats' accommodation was heavily subsidised by the landlords. If MODERATION was the key, no one would have to be declared bankrupt or forced to sell off their properties at huge losses.

Staying away from D9, 10 & 11 and living in the suburbs is a suggestion to solve the expats' housing woes, not bashing. Is it an insult for expats to stay outside D9, 10, 11 and in the suburbs? I wouldn't want to think so because that would mean insulting the majority of the Singapore resident. From what I can see, there are two types of expats... those who (still) CAN afford D9, 10 & 11 and those who CAN'T afford D9, 10 & 11, just like there are 2 types of Singapore resident... those who CAN afford to stay in D9, 10 & 11 and those who CAN'T afford to stay in D9, 10 & 11.

I take bus to work every morning, together with many expats. I don't see a problem with that especially when our country's public transport is not that bad. There are many expats (where I stay) who take the cab instead. No problem with that either.

Having said that, I hope this problem of SUDDEN and MASSIVE increase in rents (which is due to the supply crunch) is short-lived... with many developments going TOP soon, let's hope it will ease the rents.

Honestly speaking, Singapore has one of the best public transport system. Look at New York train stations, you will vomit on the condition and the service if compared to Singapore MRT. Singapore is also too small, i.e. Pasir Ris or Jurong are only 30min to Downtown by MRT.

Car price has gone down tremendously if you compared to 3yrs ago, despite COE went up recently but no where to compare when $30k-$50k were norm in the past. Expatriate can buy relatively good second hand car at very cheap price if they chose to as car in Singapore are well maintained ( & reason why scrap car export to other countries are so welcome, including Australia ).

I could not agree living in Central Core in D9,10,11 is a must for expatriate. If you look at Hong Kong, Tokyo, how many people stay around Central ? Look at East Coast, Jurong East, Clementi, Tampines, Toa Payoh, etc,.... they are nice and convenient place to live as well compared to suburban areas in other regional cities in Asia.... even Geylang is not bad, though there stay a lot of other expatriate class which is not within our topic of discussion....but you can compare to Mongkok in Hong Kong though...still not bad a comparison.

Nowaday a lot of Ang Moh stay near my house in Pasir Ris. I like to see them walk around in Bikini as my house is near Wild Wild Wet.:lol:

Rental increase is a good thing..................

Another Ang Moh just make an offer to buy my Pasir Ris Condo..... I just turn them down.:)

I understand how the tenants feel when they experience a SUDDEN and MASSIVE increase in rents. Yes, its going to upset many expats. But this SUDDEN and MASSIVE increase in rents just shows how much depressed the rents once were... I have seen rents plummet to scary lows until landlords were forced to sell their loss-making properties... some were even declared bankrupt... the rents were not even able to meet the mortgage interest payments. For a while, expats' accommodation was heavily subsidised by the landlords. If MODERATION was the key, no one would have to be declared bankrupt or forced to sell off their properties at huge losses.

Staying away from D9, 10 & 11 and living in the suburbs is a suggestion to solve the expats' housing woes, not bashing. Is it an insult for expats to stay outside D9, 10, 11 and in the suburbs? I wouldn't want to think so because that would mean insulting the majority of the Singapore resident. From what I can see, there are two types of expats... those who (still) CAN afford D9, 10 & 11 and those who CAN'T afford D9, 10 & 11, just like there are 2 types of Singapore resident... those who CAN afford to stay in D9, 10 & 11 and those who CAN'T afford to stay in D9, 10 & 11.

I take bus to work every morning, together with many expats. I don't see a problem with that especially when our country's public transport is not that bad. There are many expats (where I stay) who take the cab instead. No problem with that either.

Having said that, I hope this problem of SUDDEN and MASSIVE increase in rents (which is due to the supply crunch) is short-lived... with many developments going TOP soon, let's hope it will ease the rents.

Like what Pigpig says is very true.....

Rent increase the tennant can just choose to move out......

When rent come down the owner cannot even find a buyer to sell their property to cut lost.......

Who suffer more? I guess is the poor owner who have to stick with their property through thick and thin.

By the way... I belong to the group that cannot afford to stay in 9,10,11. I rather rent it out.

I understand how the tenants feel when they experience a SUDDEN and MASSIVE increase in rents. Yes, its going to upset many expats. But this SUDDEN and MASSIVE increase in rents just shows how much depressed the rents once were... I have seen rents plummet to scary lows until landlords were forced to sell their loss-making properties... some were even declared bankrupt... the rents were not even able to meet the mortgage interest payments. For a while, expats' accommodation was heavily subsidised by the landlords. If MODERATION was the key, no one would have to be declared bankrupt or forced to sell off their properties at huge losses.

Staying away from D9, 10 & 11 and living in the suburbs is a suggestion to solve the expats' housing woes, not bashing. Is it an insult for expats to stay outside D9, 10, 11 and in the suburbs? I wouldn't want to think so because that would mean insulting the majority of the Singapore resident. From what I can see, there are two types of expats... those who (still) CAN afford D9, 10 & 11 and those who CAN'T afford D9, 10 & 11, just like there are 2 types of Singapore resident... those who CAN afford to stay in D9, 10 & 11 and those who CAN'T afford to stay in D9, 10 & 11.

I take bus to work every morning, together with many expats. I don't see a problem with that especially when our country's public transport is not that bad. There are many expats (where I stay) who take the cab instead. No problem with that either.

Having said that, I hope this problem of SUDDEN and MASSIVE increase in rents (which is due to the supply crunch) is short-lived... with many developments going TOP soon, let's hope it will ease the rents.



Agree!

We don't have the culture and the intention to bash expats.

Expats should also be realistic that only a small percentage of residents and expats can stay in the Core. The Core is expensive to both the residents and the expats. There is no discrimination here.
If the Core is so cheap to rent, many residents would have rented an apartment in the Core in the first place. There will not be enough apartment for rental then.

And yes, realistic expats do take public transports - just like a lot of residents do.

Yes, moderation is needed - not in the form of mandating what the rental price should be but in the form of manipulating the supply.

Can we limit the reduction in rental in a downturn? Or let it freefall? :)

shctaw ah shctaw, you don't belong to the group that cannot afford to stay in 9,10,11... you belong to the group that CAN afford BUT CHOOSE NOT TO stay in 9,10,11... there's a subtle difference... hehe... :)

I think people have forgotten the words "Kiasu & Kiasi" are invented in Singapore.:lol:

My investment backbone is base on this 2 words only.:)

Like what Pigpig says is very true.....

Rent increase the tennant can just choose to move out......

When rent come down the owner cannot even find a buyer to sell their property to cut lost.......

Who suffer more? I guess is the poor owner who have to stick with their property through thick and thin.

By the way... I belong to the group that cannot afford to stay in 9,10,11. I rather rent it out.

I more jia lat than you. I cannot afford to stay in 9,10,11 but i am currently staying in 9,10,11 :lol::lol:

A bit off topic, but actually I kind of think the opposite....

To me, one of the big attractions of Singapore as an investment and asset management base is not the fact that it is a pure "free market". Instead, the opposite is true: people are attracted here, because they know that the government manages the market to ensure an environment conducive to long-term stable and healthy growth.

In other words, we are "pro business" as long as business is moving in the "right direction" for the betterment of Singapore....This is a Key difference.....

If the market was a "free for all" (ie. Hong Kong) you can make a bigger fortune but you can very easily lose it and no one will help you...HK is known for very high "up cycles" and very low "down cycles". I think, in Singapore, the government intervenes when it thinks it is necessary....sometimes this means people will make a bit less money, but it will balance out over the long term as hopefully our economy will not suffer the same drastic downswings that are typical in HK every so often....A lot of businesses (private banking, biotech, aerospace, R&D) will appreciate this environment as it is more stable for making long term capital and personnel investments.....This is why Singapore has been doing so wel attracting them the past 5 years...

Actually your take is better than what I wrote! As for rentals, I think the real question is does: Does high rentals harm Singaproe's long term future?

The opposite arguement that rents should be capped to allow people stay in Districts 9,10,11 is nonsensical!!!

This is a free market, government will have difficulty to cap, if they do they will still face problem for controlling the black market. :bash:

Having said that, G still can do a lot things if they want rent to come down, they can give tax incentive to expats for renting HDB, or allow expats to rent HDB directly from HDB board, tax incentive for HDB owner to rent whole flat to expats, or to the extreme allow foreigner to buy HDB or landed. Don’t play plat with G --they are very creative.:nuts:

I think, the earlier expats wake up to the changes in prime real estate in Singapore, the better it is for them. D9, 10 and 11, and the IRs' vicinity will be reserved mainly for the ultra rich and their personal entourage/relatives.

One just have to look at the record prices achieved now ($2k-$4k psf ppr), and the ever increasing transacted enbloc prices and expected selling prices. Obviously, these apartments aren't targeted at the local rich or even those on expat terms.

When Kwek said he wasn't pricing it for yield, he meant, its not for rent, ever.

Ok, maybe not forever. :lol:

As for expats that are thinking of leaving Singapore because of the rising rental.. didn't you read the papers? They have to go through a bidding war with 10 others for the same apartment. Doesn't that mean there's no shortage of expats coming to town? If they couldn't create enough value in Singapore to justify their stay, then I can wish them Bon Voyage.

:cheers:

As for expats that are thinking of leaving Singapore because of the rising rental.. didn't you read the papers? They have to go through a bidding war with 10 others for the same apartment. Doesn't that mean there's no shortage of expats coming to town?

no, just means there is a temporary shortage of apartments.....hence the rising rents and vacancy less than 5% island-wide (less than 3% in prime districts).

just talked to a headhunter today and they mentioned they just got told by a client to shift looking for 10 new positions from Singapore to KL (regional sales support). 2 of these positions were management level and this headhunter told me that the higher salary and allowances to put 2 managers in singapore would pay for the whole team to be in KL...so, the client said don't bother...

hope this is just an isolated case of a cheapskate company!!

no, just means there is a temporary shortage of apartments.....hence the rising rents and vacancy less than 5% island-wide (less than 3% in prime districts).

just talked to a headhunter today and they mentioned they just got told by a client to shift looking for 10 new positions from Singapore to KL (regional sales support). 2 of these positions were management level and this headhunter told me that the higher salary and allowances to put 2 managers in singapore would pay for the whole team to be in KL...so, the client said don't bother...

hope this is just an isolated case of a cheapskate company!!

If its, as you claim, just temporary shortage of apartments, then, I will welcome them back to Singapore when this shortage is addressed and they think the rental is reasonable. Whats the worry? Rents rise and drop all the time, I don't think there's a problem.

This client isn't thinking straight. If I were the client, I would have gone for KL from the get go, being so much cheaper. Obviously putting them in SG or KL didn't make a difference in the company's plans nor the expectations of the employees for that matter. In other words, there insufficient added value, in the eyes of the client, to put them in Singapore to justify the cost difference.

We cannot expect to win in both high margin and low margin industries. We have to be realistic.

This is getting to be a real emotive issue isnt it ?? I am what you may call an expat - but not quite one. I get paid by my firm and with that pay I need to find my own apartment , transport, kids education whatever...expat is when a lot of these are taken care of by the firm. Now, that was a pretty workable ( except for occassions when landlrds refused to lease on a personal lease ) for me for the past 4 odd years. I had moved from another city, where rents were unaffordable so the firm had provided housing. Here, for me, the city life meant staying in the ost central & metropolitan location - and I did - Dist 9, no less- large apartment - 3000 sqf t no less - but guess what thats the kind of apartment I lived in in my previous location and the one prior etc. So it want that I was "living it up " . I ensured I was walking distance from MRT so that saved me $2000 odd per month for not gettin a car, and i recycled that money into my rental. All fine and dandy. Now I have to move out due to enbloc and am facing a 60% incr in rental, for a smaller place, in Dst 10. SO by implication my "lifestyle" takes a dip as does my wallet ! Would I move further out - well I did consider it , but the economics were clear - net out $ 2000 for a car and see if you can get a place similar size farther out - didnt do too well with that either.
So net net -story is you can say that expat can do this or do that but remember a lot of the people are not really "upgrading"their lifestyles - just maintaning it - and if that ends up giving a huge knock to the wallet then people [ employees ] are in pain.
I think this is going to continue as there will be more enblocks and there will be a supply crunch till the new ones TOP by 2009 but thereafter there will be a correction.
As for someone else's comment on moving jobs away - yes it is true - is happening in a small way right now . May gather momentum - who knows - if neighbouring govts are smart they will ake it easier for EP's to be given for foreigners.

This is getting to be a real emotive issue isnt it ?? I am what you may call an expat - but not quite one. I get paid by my firm and with that pay I need to find my own apartment , transport, kids education whatever...expat is when a lot of these are taken care of by the firm. Now, that was a pretty workable ( except for occassions when landlrds refused to lease on a personal lease ) for me for the past 4 odd years. I had moved from another city, where rents were unaffordable so the firm had provided housing. Here, for me, the city life meant staying in the ost central & metropolitan location - and I did - Dist 9, no less- large apartment - 3000 sqf t no less - but guess what thats the kind of apartment I lived in in my previous location and the one prior etc. So it want that I was "living it up " . I ensured I was walking distance from MRT so that saved me $2000 odd per month for not gettin a car, and i recycled that money into my rental. All fine and dandy. Now I have to move out due to enbloc and am facing a 60% incr in rental, for a smaller place, in Dst 10. SO by implication my "lifestyle" takes a dip as does my wallet ! Would I move further out - well I did consider it , but the economics were clear - net out $ 2000 for a car and see if you can get a place similar size farther out - didnt do too well with that either.
So net net -story is you can say that expat can do this or do that but remember a lot of the people are not really "upgrading"their lifestyles - just maintaning it - and if that ends up giving a huge knock to the wallet then people [ employees ] are in pain.
I think this is going to continue as there will be more enblocks and there will be a supply crunch till the new ones TOP by 2009 but thereafter there will be a correction.
As for someone else's comment on moving jobs away - yes it is true - is happening in a small way right now . May gather momentum - who knows - if neighbouring govts are smart they will ake it easier for EP's to be given for foreigners.


Why buy a car?
You should consider shifting to suburb condo next or near MRT.
There is no difference in taking a train from a station in Dist9/10 vs a station in suburb.

If a company want to shift from a 1st-world to a 3rd-world location, can you stop it? You can't!

Can we for a momemt stop discussing rental in Singapore for a moment?

Can somebody suggest how to cap the rental rise in Manhattan, West London, HongKong or HoChiMinh City? Should we cap the rental rise in these cities (which are more expensive than Singapore) since companies will (in your opinion) shift out of these cities?

Totally agree - no am ot buying a car -am moving to a place 2 bus stps away from MRT- still a far cry from walking 10 mts to MRT, you will agree.
As re yourpoint about Mnahattan or Lnd- absolutely right - however, size dictates and hence for the ripples of such increases to be felt in a place the size of Ldn it would have to be pretty massive -then again you canot compare the two ie Sing & London - like it or not , you cannot. I have lived in both and am hapy to make an objective statement - else your point is valid.

Totally agree - no am ot buying a car -am moving to a place 2 bus stps away from MRT- still a far cry from walking 10 mts to MRT, you will agree.
As re yourpoint about Mnahattan or Lnd- absolutely right - however, size dictates and hence for the ripples of such increases to be felt in a place the size of Ldn it would have to be pretty massive -then again you canot compare the two ie Sing & London - like it or not , you cannot. I have lived in both and am hapy to make an objective statement - else your point is valid.


How about HongKong and HoChiMinh City?

Putting a cap is not workable. At most, gahmen would be looking into reviewing the rental regulations... just like what they plan to do for the enbloc sales. Which I’d have to agree, is quite overdue…being a tenant before…
Like any changes, there are bound to be new problems. Tenants forced to move out of their homes are not any dissimilar from dissent enbloc owners. Some may think this problem has to be solved by the gahmen. But it does not take just the top to decide right now, there are too many players involved. It does not help that the market seems set on heading north. Current expat tenants are the most affected, caught in a situation to decide a change of home AND even a job…and worst if their children’s education gets affected too. Unfortunately, maintaining what they previously were enjoying, may come with a higher price tag now.
Sigh…I hope employers and agents could look into immediate alternative arrangements to help them cope with it before the reviews :cheers: .

Why buy a car?
You should consider shifting to suburb condo next or near MRT.
There is no difference in taking a train from a station in Dist9/10 vs a station in suburb.

If a company want to shift from a 1st-world to a 3rd-world location, can you stop it? You can't!

Can we for a momemt stop discussing rental in Singapore for a moment?

Can somebody suggest how to cap the rental rise in Manhattan, West London, HongKong or HoChiMinh City? Should we cap the rental rise in these cities (which are more expensive than Singapore) since companies will (in your opinion) shift out of these cities?

I'm not an expert but rent caps do exist in the places you mentioned. As far as I know, in Singapore: B&W housing. In London: Government housing: owned by private individuals and maintained by the government. NY: government impose rent caps.

The interseting thing is that its often not the poor that enjoy the benefits - there are plenty of millionaires who stay in rent controlled NY apartaments. I'm not sure of current status of B&W housing in Singapore but 10 years ago I met a high profile banker than was paying 1,500 p.m. for one and his salary would conservatively have been over 500,000 a year...

This is getting to be a real emotive issue isnt it ?? I am what you may call an expat - but not quite one. I get paid by my firm and with that pay I need to find my own apartment , transport, kids education whatever...expat is when a lot of these are taken care of by the firm. Now, that was a pretty workable ( except for occassions when landlrds refused to lease on a personal lease ) for me for the past 4 odd years. I had moved from another city, where rents were unaffordable so the firm had provided housing. Here, for me, the city life meant staying in the ost central & metropolitan location - and I did - Dist 9, no less- large apartment - 3000 sqf t no less - but guess what thats the kind of apartment I lived in in my previous location and the one prior etc. So it want that I was "living it up " . I ensured I was walking distance from MRT so that saved me $2000 odd per month for not gettin a car, and i recycled that money into my rental. All fine and dandy. Now I have to move out due to enbloc and am facing a 60% incr in rental, for a smaller place, in Dst 10. SO by implication my "lifestyle" takes a dip as does my wallet ! Would I move further out - well I did consider it , but the economics were clear - net out $ 2000 for a car and see if you can get a place similar size farther out - didnt do too well with that either.
So net net -story is you can say that expat can do this or do that but remember a lot of the people are not really "upgrading"their lifestyles - just maintaning it - and if that ends up giving a huge knock to the wallet then people [ employees ] are in pain.
I think this is going to continue as there will be more enblocks and there will be a supply crunch till the new ones TOP by 2009 but thereafter there will be a correction.
As for someone else's comment on moving jobs away - yes it is true - is happening in a small way right now . May gather momentum - who knows - if neighbouring govts are smart they will ake it easier for EP's to be given for foreigners.


I never thought of buying a car............ I prefer Taxi.

There are a few type of Expats in Singapore, just like Singaporeans. Some are rich, some not that rich and the "so call poor".

I know a "not that rich" expats whom earn $30k a month in Singapore. Before he was posted here his salary is only US$12k. This expat is benefiting from Singapore.

A lot of big firms and Banks are now tripping over each other to open new head office or new branch in Singapore. (Singapore is going to become playground of the rich.)

To cap the rental here first have to cap the rental of Office which is expected to hit $16-$22 psf in Year 2010.

When The Sail TOP in 2009, a 600 sq ft studio may fetch $4000-5000. ($7-9 psf rental) Is that expensive? A office of 600 sq ft by then would be renting for $10,000.:)

I dont think you guys get it do you ? ..of course taxi is better choice - thats what I do . Of course there will be those who earn 2hatever , but the fact they agreed to move here & relocate would be because they would be better off. At the end of the day what are the complaints about - its "oh we had estimated a cost of living of X and now that estimate is totally fallen of bed at X +50% " Enough said .
And by the way, if I am not mistaken Office rental is already @ $ 15 psf - try Republic Plaza .
Of course banks will trip over each other, as you said to cater to the rich. Its a short term adjustment process, which takes place when new hires all neet to be at current market pricing of living here, and slowly someof the others get marked to market. We have seen that happen in other cities. Take Mumbai - rentals both commercial & residential have increased similarly inthe past 12 mths. People have increased salaries by 30-50% across the board. Its a function of demand & supply as all of you have said .....let free market forces play - however, sounds a bit one sided because there are a host of other regulations that are stacked against the foreigner which make it appear not a free market .

I dont think you guys get it do you ? ..of course taxi is better choice - thats what I do . Of course there will be those who earn 2hatever , but the fact they agreed to move here & relocate would be because they would be better off. At the end of the day what are the complaints about - its "oh we had estimated a cost of living of X and now that estimate is totally fallen of bed at X +50% " Enough said .
And by the way, if I am not mistaken Office rental is already @ $ 15 psf - try Republic Plaza .
Of course banks will trip over each other, as you said to cater to the rich. Its a short term adjustment process, which takes place when new hires all neet to be at current market pricing of living here, and slowly someof the others get marked to market. We have seen that happen in other cities. Take Mumbai - rentals both commercial & residential have increased similarly inthe past 12 mths. People have increased salaries by 30-50% across the board. Its a function of demand & supply as all of you have said .....let free market forces play - however, sounds a bit one sided because there are a host of other regulations that are stacked against the foreigner which make it appear not a free market .

Now I get it. Thank you.

http://www.time.com/time/magazine/article/0,9171,1624897-1,00.html

Nice article.

Imagine Singapore growing to become a new playground for the rich by 2010.
Imagine Prices of everything here go up.
Imagine Price of houses shoot thru the roof.
Imagine a studio for $2 million as a good deal.
Imagine people winning and losing millions in Casino everyday.
Imagine people changing Casino chip using $10,000 Singapore note as it they are $10 bill.

With just a bit of Imagination, it will become a vision.
With this Vision you will gain an inside to Property Investment in Singapore.

Should reach out now while you still can before thing go beyond reach.

People here keep saying - what about place X, or place Y, they don't have rent control.

The point I made earlier - and am making again - is that rental control is not the answer. But expats have a real and serious concern because the rental rise is sudden and massive.

So one could not plan for it, nor did one take a decision to move to Singapore knowing that this would happen within the last 9 months.

I'm very happy for Singapore that its booming and eventually that's good for everyone in Asia and the world. However, to allow a supply crunch to be created via en blocing, and to therefore allow rents to increase like this -- is less than pleasant for those that live here.

Is that so hard to follow? Why start taking about more expensive cities? If I move to NYC (which is where I live), I know what the rent is (its high) and that it increases (approx 5% per anum) and I can factor that in to my decisions.

Now if I wake up tomorrow and the rent has gone up 50% because the Govt decides to implode half the buildings in the city, is it too much to express unhappiness?

And as for the competitiveness point, if you think Singapore is as important to corporations as New York and London... you really need to re-think your assumptions. So no point comparing the expensiveness of the locations.

At the end of the day what are the complaints about - its "oh we had estimated a cost of living of X and now that estimate is totally fallen of bed at X +50% ".

I can see why tenants are unhappy, both for those who have just arrived and found their previous estimations of housing costs have changed, as well as those who are already here and have had to, or anticipate that they will have to, pay a lot more when their lease is up. On the flip side, however, there are buyers of properties that have geared up to buy property and taken a 30 year loan on certain expectations of rental returns and increasing rents. Given that many landlords have not been and are still not even getting enough returns to cover interest on capital and other costs, I say this is the reality that both landlords and tenants have to deal with and the free market should decide in the private property market. The government has already helped by making it easier for HDB flats to be rented out, thereby increasing the supply of basic housing. There is little justification for relatively well-off tenants of private housing to be subsidized by anyone.

I have a place in Pasir Ris which use to rent for $1200 now I have agent with ready tennant offering $2500.

Maybe is the Tennants that are pushing up the rent.

Even at $2500 it still will not cover the mortgage I am paying monthly.

But , presume you wuld be sitting on a healthy capital gain? I really like this ding dong battle going n here between the ayes and the nays. I really think nobody actually disputes the call for a free market & what the traffic can bear type of arguments...the only thing that people are stung with is the sheer pace of the rise - whether its to buy or to rent - worse still if its to rent. Because when would you ever factor in a 50% increase in an item of expense which is about a third of your annual take home ?

Saigalt - exactly!

Agree! We don't have the culture and the intention to bash expats. The Core is expensive to both the residents and the expats. There is no discrimination here.

If the Core is so cheap to rent, many residents would have rented an apartment in the Core in the first place. There will not be enough apartment for rental then. Yes, moderation is needed - not in the form of mandating what the rental price should be but in the form of manipulating the supply.

So high demand but low supply will push up rents... NO?


I dont think you guys get it do you ? ..of course taxi is better choice - thats what I do. Of course there will be those who earn 2hatever, but the fact they agreed to move here & relocate would be because they would be better off. At the end of the day what are the complaints about - its "oh we had estimated a cost of living of X and now that estimate is totally fallen of bed at X +50% " Enough said.

And by the way, if I am not mistaken Office rental is already @ $ 15 psf - try Republic Plaza. Of course banks will trip over each other, as you said to cater to the rich. Its a short term adjustment process, which takes place when new hires all neet to be at current market pricing of living here, and slowly someof the others get marked to market. We have seen that happen in other cities.

Take Mumbai - rentals both commercial & residential have increased similarly inthe past 12 mths. People have increased salaries by 30-50% across the board. Its a function of demand & supply as all of you have said .....let free market forces play - however, sounds a bit one sided because there are a host of other regulations that are stacked against the foreigner which make it appear not a free market .

Then u(& banks) should buy before the price rise... NO? But you want to buy a landed isit?... Yet rules & regulations here pique your interest.... Safe, clean, green, high standard of living / education / etc. There is a Cantonese saying:

Eat salt, withstand thirst!

Many an expat had it good when rents were cheap $2000 (say or X) and laughed when landlords have to pay $6000 mortgages (so NEVER buy they exclaim! Cos 3X, purposely didnt use 2X ie too-ex)


Imagine Singapore growing to become a new playground for the rich by 2010.
Imagine Prices of everything here go up.
Imagine Price of houses shoot thru the roof.
Imagine a studio for $2 million as a good deal.
Imagine people winning and losing millions in Casino everyday.
Imagine people changing Casino chip using $10,000 Singapore note as it they are $10 bill.

With just a bit of Imagination, it will become a vision.
With this Vision you will gain an inside to Property Investment in Singapore.

Should reach out now while you still can before thing go beyond reach.

Exactly... NO?

On the other hand, e.g. 3000sf apt that Saigalt lived in, Most Core(or Sentosa/Shenton/Orchard) would probably be in the region of $6M? Mortgage will be at least $25K... what do you want to pay for it anyone? Consider Economic life of Landlord/apt?

And if you did buy it... Someday u retire... u still have 10yrs mortgage to pay say still $25K... will u still rent it to me at your tenant friendly rents that u wanted to pay?

What! You won't buy in the 1st place???!!! Then... pay rent lor... There is a Cantonese saying:

Eat salt, withstand thirst!

wah piang ... now the rental so high high ... thinking of migrating liao ...

That's inflation !

I'm not surprise if we continue to have bull run up to at least 2010, may be you can't even find a $1000psf private apartment anywhere in the island.

Beginning of 2006, Orchard's most expensive apartment was around $2000+psf, and that's where the richest own or stay.

Now new apartment launch at City fringe easily hit close to or more than 2000+psf.

So, there is a shift of paradigm among the rich in Singapore, i.e., the older generation local rich has been forced to move out of the most prime after an enbloc.

Similarly happened to city fringe where previous local mid-high end rich had been forced furthur down to suburban after enbloc.

Those younger graduates in future will find themselves very hard to own private property unless their rich parents had the foresight and had bought for them.

However, for rental it may depends on supply & demand. If supply exceed demand by a lot, then rental may get cheap but owners may suffer having to rent out at below their mortgage payout. Remember mortgage quantum will be bigger when price psf was higher when they purchased the house.