View Full Version : 'Rents may drop' with foreign tenant quotas
princess_morbucks
18-01-14, 11:49
http://www.straitstimes.com/breaking-news/singapore/story/rents-may-drop-foreign-tenant-quotas-20140118
Agents say this will result from rush to secure tenants before caps are hit
Rents in areas popular with foreigners could fall significantly because of new quotas which cap how many public flats can be sublet to non-citizens, according to property agents.
"If your price is too high, then others who are renting out might get in there first," said Dennis Wee Realty's Mr Jimmy Chua, pointing out that landlords may scramble to secure tenants before the quotas are reached by cutting rents.
On Thursday, it was announced that no more than 11 per cent of units in any single block can be rented out to foreigners to prevent enclaves forming. The limit is 8 per cent for each Housing Board (HDB) neighbourhood.
Only 1 per cent of such neighbourhoods and blocks have so far hit the caps. These areas are in central, Jurong West, Queenstown, Sengkang and Clementi, where rents are some of the highest among Singapore's neighbourhoods. According to Singapore
Rents in other HDB areas might go up? Those which haven't reached the quota?
I would think that rent will go UP instead at places that is popular with foreigners. Reason being there are limites units, hence it will be rented to the highest payer, as long as the rate is still cheaper than renting nearby condo.
I am curious how rental renewal is handled under this new scheme. Every renewal is considered as a new case?
So if tenant wants to renew and extend the lease, got to recheck the quota or no? If not, then it's unfair to other owners cos the same flat can rent out perpetually... tenant can even rent out his name to use perpetually. If recheck quota, then every tenant got to merry go round after every lease. There are implications both ways and rental price can both go up or down accordingly.
All depends who blink 1st
All depends who blink 1st
Quite true also cos on the landlord side if they wait for high offer, end up others rented out liao and no more quota. u are sharp man.
Quite true also cos on the landlord side if they wait for high offer, end up others rented out liao and no more quota. u are sharp man.
It depends on how the game is play. If we need to get a tenant before we can apply for rental to foriegner, then it will drop. If we need to get approval then find tenant, it will raise
princess_morbucks
18-01-14, 19:00
I am curious how rental renewal is handled under this new scheme. Every renewal is considered as a new case?
So if tenant wants to renew and extend the lease, got to recheck the quota or no? ...........
Yes, each time wanna renew lease, it will be subjected to HDB approval based on prevailing quota.
http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/51A6512F14F32CC848257C6200226A1E?OpenDocument
Tenants with agents are smart to exploit the system.
It depends on how the game is play. If we need to get a tenant before we can apply for rental to foriegner, then it will drop. If we need to get approval then find tenant, it will raise
princess_morbucks
18-01-14, 19:21
It depends on how the game is play. If we need to get a tenant before we can apply for rental to foriegner, then it will drop. If we need to get approval then find tenant, it will raise
According to the flow chart, you need to get approval first before finding tenant.
There is another problem.
If for eg if one spouse is SC/Malaysian, and the other is a NC, then the NC quota applies to this family.
According to the flow chart, you need to get approval first before finding tenant.
There is another problem.
If for eg if one spouse is SC/Malaysian, and the other is a NC, then the NC quota applies to this family.
If need to get approval first, I believe the rental will go up. As you have not choice but to rent from those who have the approval...
It really depends on who is more desperate. There is a biz opportunity here with this new requirement.
If need to get approval first, I believe the rental will go up. As you have not choice but to rent from those who have the approval...
princess_morbucks
18-01-14, 19:39
I post the flow chart again.
I assume that as long as the subletting quota allows NC to rent the whole flat, HDB will approve.
Once HDB approves, the tenant must shift in within 1 month of approval.
http://forums.condosingapore.com/attachment.php?attachmentid=7869&d=1390046415
End of the day The main factory is how much the tenant "afford to pay". Or how much money the can spend for the rent. One extreme example is if the Gov put cooling measure by putting BSD 30% for Foreigner and PR, I sure the property price in Singapore will be "very cool"
It looks like the quota data are revised monthly rather than being updated in real time. That's why the tenant has a deadline to move in before they update.
princess_morbucks
18-01-14, 21:43
It looks like the quota data are revised monthly rather than being updated in real time. That's why the tenant has a deadline to move in before they update.
Yes it is according to the HDB website :
http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/51A6512F14F32CC848257C6200226A1E?OpenDocument
"7A new e-Service (http://www.hdb.gov.sg/subletting-quota) is available on the HDB InfoWEB for members of public to check if a flat can be sublet to NCs (please see Annex A (http://www.hdb.gov.sg/fi10/fi10297p.nsf/ImageView/CORPORATE_PR_16012014_Annex%20A/$file/NC+subletting+quota-Annex+A.pdf) http://www.hdb.gov.sg/fi10/fi10297p.nsf/ImageView/INFOWEBICON/$file/icon-pdf.gif;wa2812f9586cf6e5f1 (PDF 177KB) for the revised application process). The information will be updated on a monthly basis on the first day of the month, and is valid for the whole calendar month. "
Since there is a limited supply of flats eligible to be rented out to NCs, I doubt if rents will go down. Unless the number of foreigners employed in Singapore declines drastically.
Gov only change the distribution not the Total ratio. So my take is there will not be drastic price change for renting market
It has happened to those in the region of $2500-3500 region.
Since there is a limited supply of flats eligible to be rented out to NCs, I doubt if rents will go down. Unless the number of foreigners employed in Singapore declines drastically.
matrix0405
19-01-14, 08:13
http://www.straitstimes.com/breaking-news/singapore/story/rents-may-drop-foreign-tenant-quotas-20140118
Only 1 per cent of such neighbourhoods and blocks have so far hit the caps. These areas are in central, Jurong West, Queenstown, Sengkang and Clementi, where rents are some of the highest among Singapore's neighbourhoods. According to Singapore
Why is Sengkang so hot for rent? Is the rent there cheaper, since no industry nearby?
It has happened to those in the region of $2500-3500 region.
In that region, it may be possible to find old private condos to rent. Condo rents have been softening lately.
princess_morbucks
19-01-14, 09:53
http://www.straitstimes.com/breaking-news/singapore/story/rents-may-drop-foreign-tenant-quotas-20140118
......................................................
Only 1 per cent of such neighbourhoods and blocks have so far hit the caps. These areas are in central, Jurong West, Queenstown, Sengkang and Clementi, where rents are some of the highest among Singapore's neighbourhoods. According to Singapore
Why is Sengkang so hot for rent? Is the rent there cheaper, since no industry nearby?
Mabbe the owners of Sengkang and the other estates mentioned above, prefer to rent out their flats more than owners of other region?
That's possible. A lot of Sengkang HDB owners seem to be using their flats rental to subsidize their 2nd property. And preferring to stay in the PC which probably is more centrally located or has better ambience. Oh well... that's puts a dampener on SK flat owners' plans.
PC will go up ard those areas where quota are met.
proud owner
19-01-14, 11:13
tenants may avoid HDB totally
imagine you manage to rent one, but landlord unable to secure a renewal ... tenants will have to move out after 12mth ..its a lot of cost involved in moving ..
If u go hdb website to check on the quota very few will hit. This rule is just to calm the complainers.
princess_morbucks
19-01-14, 11:29
If u go hdb website to check on the quota very few will hit. This rule is just to calm the complainers.
Yes, very few are affected.
The report says : Only 1 per cent of such neighbourhoods and blocks have so far hit the caps.
I am not sure what is the real reason behind this policy, on surface they are saying they want to avoid foreign cluster forming in Singapore, however I am not sure if this is just a cover to prevent Singaporeans from using HDB as a source of income to retire in Malaysia.
With this new policy, I think many people retirement dream might have to put on hold.
princess_morbucks
20-01-14, 12:49
I am not sure what is the real reason behind this policy, on surface they are saying they want to avoid foreign cluster forming in Singapore, however I am not sure if this is just a cover to prevent Singaporeans from using HDB as a source of income to retire in Malaysia.
With this new policy, I think many people retirement dream might have to put on hold.
If only 1% is affected by the new rule, that means less than 1% of the group that you mentioned above are affected.
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