moneyspinner
22-06-07, 18:20
Landlords cut lease period up rentals http://www2.nationproperty.com.sg/npp2/images/spacer.gif
22 June
The usual three-year lease plus three-year option is a thing of the past, for now. A one-year lease is becoming the norm in this hot rental property market. And the heat is getting more intense each day.
Many tenants have their rude awakening recently when their current leases expire. With more expatriates arriving and the economy charging forward, more landlords are upping the ante, especially so in the residential market.
This is because home prices are continually rising and landlords would not want to lose out by signing a long lease. Short-term leases are the way to go for landlords to stay competitive and to constantly update rents.
For example 1,000 sq ft two-bedroom apartment in River Valley Road is now going for $5,000 a month for a one-year deal. With the prospect of home prices looking very rosy, no landlord will be willing to sign any deal beyond one year.
Likewise, retailers are feeling the heat. The typical three-plus-three year leases are now being replaced by a simple three-year lease in many shopping malls.
While private landlords openly admitting that they are milking the situation, developers however claim that they keep leases short to ensure vibrancy in their malls.
Only office tenants are spared the anxiety. Major developers in the Central Business District are staying with standard lease terms of about two to three years. This trend is expected to last until the opening of the casino in 2009. :scared-2:
Source: Nationproperty.com
22 June
The usual three-year lease plus three-year option is a thing of the past, for now. A one-year lease is becoming the norm in this hot rental property market. And the heat is getting more intense each day.
Many tenants have their rude awakening recently when their current leases expire. With more expatriates arriving and the economy charging forward, more landlords are upping the ante, especially so in the residential market.
This is because home prices are continually rising and landlords would not want to lose out by signing a long lease. Short-term leases are the way to go for landlords to stay competitive and to constantly update rents.
For example 1,000 sq ft two-bedroom apartment in River Valley Road is now going for $5,000 a month for a one-year deal. With the prospect of home prices looking very rosy, no landlord will be willing to sign any deal beyond one year.
Likewise, retailers are feeling the heat. The typical three-plus-three year leases are now being replaced by a simple three-year lease in many shopping malls.
While private landlords openly admitting that they are milking the situation, developers however claim that they keep leases short to ensure vibrancy in their malls.
Only office tenants are spared the anxiety. Major developers in the Central Business District are staying with standard lease terms of about two to three years. This trend is expected to last until the opening of the casino in 2009. :scared-2:
Source: Nationproperty.com