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Private property rental rates set to rise with the expected arrival of 80,000 foreign workers
Rental rates in the private property market are poised to rise with the expected influx of some 80,000 foreign workers this year.
Analysts said this is because of the shortage of private housing. And the supply situation may not improve this year, as only 5,000 private housing units are expected for completion by the end of the year.
The Government’s forecast on the number of foreign workers here comes on the heels of an expected boom in the job market. And as housing needs for these foreign workers increase, rental rates are likely to follow.
Mr Nicholas Mak, executive director of research and consultancy at SLP International, said: “(The influx) would actually still support the rental market in Singapore. And this could cause rentals to rise anywhere from 2 to 5 per cent for the second half of this year.”
Second quarter figures from the Urban Redevelopment Authority showed private property vacancy rates were at 5.4 per cent.
Analysts added that private residential property rental yields are currently 3 to 4 per cent. With the rise in foreign workers, they expect rental yields for non-landed properties to increase by about 1 per cent by the end of this year.
“With the inflow of foreign workers into Singapore, we expect rental yields to probably be at a steady level because of the rent take-up,” said Mr Eugene Lim, associate director of ERA Asia Pacific.
“Typically, the rental market in Singapore is pretty stable. It will only drop, for example, in times when the economy is undergoing recession. That is when big numbers of foreign workers may then leave the country,” said Mr Lim.
Source : Today – 20 Sep 2010:D :D
Geylang OKT
20-09-10, 23:44
Hello Agent :D
Private property rental rates set to rise with the expected arrival of 80,000 foreign workers
Rental rates in the private property market are poised to rise with the expected influx of some 80,000 foreign workers (CONSTRUCTION WORKERS AND MAIDS?) :) this year.
Analysts said this is because of the shortage of private housing. And the supply situation may not improve this year, as only 5,000 private housing units are expected for completion by the end of the year.
The Government’s forecast on the number of foreign workers here comes on the heels of an expected boom in the job market. And as housing needs for these foreign workers increase, rental rates are likely to follow.
Mr Nicholas Mak, executive director of research and consultancy at SLP International, said: “(The influx) would actually still support the rental market in Singapore. And this could cause rentals to rise anywhere from 2 to 5 per cent for the second half of this year.”
Second quarter figures from the Urban Redevelopment Authority showed private property vacancy rates were at 5.4 per cent.
Analysts added that private residential property rental yields are currently 3 to 4 per cent. With the rise in foreign workers, they expect rental yields for non-landed properties to increase by about 1 per cent by the end of this year.
“With the inflow of foreign workers into Singapore, we expect rental yields to probably be at a steady level because of the rent take-up,” said Mr Eugene Lim, associate director of ERA Asia Pacific.
“Typically, the rental market in Singapore is pretty stable. It will only drop, for example, in times when the economy is undergoing recession. That is when big numbers of foreign workers may then leave the country,” said Mr Lim.
Source : Today – 20 Sep 2010:D :D
Need to say something for posting.
proud owner
21-09-10, 03:36
[quote=peterng8]Private property rental rates set to rise with the expected arrival of 80,000 foreign workers
indeed MBT needs to give a breakdown of the make up of this 80k workers
all white collars ? or blue ?
white ? how many pct Directors, how many pct managers? etc etc
cos each category has different rental affordability
devilplate
21-09-10, 10:44
[quote=peterng8]Private property rental rates set to rise with the expected arrival of 80,000 foreign workers
indeed MBT needs to give a breakdown of the make up of this 80k workers
all white collars ? or blue ?
white ? how many pct Directors, how many pct managers? etc etc
cos each category has different rental affordability
how to breakdown when it is only expected?:p
assuming a normal distribution across the 80k, for the other bulk that aren't construction workers and maids but junior execs, unless these guys buy private properties, otherwise their other option is to rent from HDB or mass market, which would then be supprtive of that market segment. And they would be competing with the PRs who some are now in a situation where they can't buy a HDB resale.
devilplate
21-09-10, 10:50
just say this is the golden era for ASIA:cheers1:
on side note: rental for high end still sluggish....last time ang mor expats r loaded and now their home currency shrinks...their countries getting poorer compared to asia.....less expats coming in with whole family packages...
getting more and more 'china expats with budget 3-4k'....u guys feel the same?
proud owner
21-09-10, 11:47
just say this is the golden era for ASIA:cheers1:
on side note: rental for high end still sluggish....last time ang mor expats r loaded and now their home currency shrinks...their countries getting poorer compared to asia.....less expats coming in with whole family packages...
getting more and more 'china expats with budget 3-4k'....u guys feel the same?
also
for expats from USA...housing allowance is now part of the pay package .. so they get taxed both in spore .. and in USA ..
devilplate
21-09-10, 11:58
also
for expats from USA...housing allowance is now part of the pay package .. so they get taxed both in spore .. and in USA ..
very few USA expats liao....mostly germans/french nowadays
USA sux thumb la:p
assuming a normal distribution across the 80k, for the other bulk that aren't construction workers and maids but junior execs, unless these guys buy private properties, otherwise their other option is to rent from HDB or mass market, which would then be supprtive of that market segment. And they would be competing with the PRs who some are now in a situation where they can't buy a HDB resale.
he he, keep this article and when rental contract expires, show it to the tenant or potential tenant to increase the rate for renewal or new lease .:D :D
Hello Agent :D
I love your avatar....:D I love to attack fish ball ...
devilplate
21-09-10, 12:30
he he, keep this article and when rental contract expires, show it to the tenant or potential tenant to increase the rate for renewal or new lease .:D :D
haha....ask ur agents to show instead...
will u buy/rent a house if u noe the owner is an agent himself?
i come across a buyer(lawyer) who insist to have his drafted OTP...whr got time?:D
haha....ask ur agents to show instead...
will u buy/rent a house if u noe the owner is an agent himself?
i come across a buyer(lawyer) who insist to have his drafted OTP...whr got time?:D
why ask agent? I set my criteria and ask agent to show me shortlisted tenants profile and I do the selection myself..I dont trust agent one...they are the group of people who aim for commission only...if u are agent...pm me if renewal you charge no fee...
Wild Falcon
21-09-10, 13:52
I read in a research report that the median expat package is 6-7k per month. Therefore, assuming 1/3 - 1/2 spent on accomodation, therefore most rental budget would be between $2 - $3.5k. I believe the median expat package will be trending downwards. So strong demand should be on suburban and HDB flats.
Also, for those expats that are keen to stay for the long term, buying is definitely a better option as rental is 100% cash-out, while some part of the mortgage payments can be serviced through the CPF. So buying is actually less taxing on their cash flows part of the mortgage goes into home equity and not dead rent.
Close to 40% of SG population today are foreigners. They are VERY significant. While Singaporeans can stay with daddy/mummy, these foreigners definitely need to either rent or buy.
just say this is the golden era for ASIA:cheers1:
on side note: rental for high end still sluggish....last time ang mor expats r loaded and now their home currency shrinks...their countries getting poorer compared to asia.....less expats coming in with whole family packages...
getting more and more 'china expats with budget 3-4k'....u guys feel the same?
rattydrama
21-09-10, 17:34
I read from URA website rental report for actual rental and compared against property guru and streetsine. No time for compilation but generally the asking is around 1.5 - 2K (HDB) to 3K to 3.5K (condo). It used to be at min of 2.8K for condo 2 months ago.
devilplate
21-09-10, 18:37
I read in a research report that the median expat package is 6-7k per month. Therefore, assuming 1/3 - 1/2 spent on accomodation, therefore most rental budget would be between $2 - $3.5k. I believe the median expat package will be trending downwards. So strong demand should be on suburban and HDB flats.
Also, for those expats that are keen to stay for the long term, buying is definitely a better option as rental is 100% cash-out, while some part of the mortgage payments can be serviced through the CPF. So buying is actually less taxing on their cash flows part of the mortgage goes into home equity and not dead rent.
Close to 40% of SG population today are foreigners. They are VERY significant. While Singaporeans can stay with daddy/mummy, these foreigners definitely need to either rent or buy.
few of my ex-tenants told me tat they 'cannot' buy a ppty in SG....if they buy, their housing allowance no more....so they rather rent....
mabe u r refering to those PRs with local package....i will buy instead of rent if i were them:D
Actually if the rental is higher, then they can switch to hiring a local and save the $3k+ rental + airfare + hardship allowances.
devilplate
21-09-10, 18:55
Actually if the rental is higher, then they can switch to hiring a local and save the $3k+ rental + airfare + hardship allowances.
foreign companies always prefer to bring in 'own' ppl one la for snr post
proud owner
21-09-10, 21:28
foreign companies always prefer to bring in 'own' ppl one la for snr post
Correct
and how many senior posts in any one company ? out of the whole spore operation ?
thats what i always trying to say ...
10000 workers in IR and 10000 workers in aerohub
how many are foreign senior positions ? and how many are local , which includes malaysians who travels in and out everyday ..
how many of these 10000 workers will be given 3k a mth for rental ?
seriously people .. if you employ 10000 workers ..will you employ all foreigners ? which increases your cost , which is NOT in line with our govt's plan to create jobs for the PEOPLE ( Singaporeans) ..
Correct
and how many senior posts in any one company ? out of the whole spore operation ?
thats what i always trying to say ...
10000 workers in IR and 10000 workers in aerohub
how many are foreign senior positions ? and how many are local , which includes malaysians who travels in and out everyday ..
how many of these 10000 workers will be given 3k a mth for rental ?
seriously people .. if you employ 10000 workers ..will you employ all foreigners ? which increases your cost , which is NOT in line with our govt's plan to create jobs for the PEOPLE ( Singaporeans) ..
Looks like proud_owner is quite bearish on the rental outlook, or should I say the effects of influx in foreign workers on the rental market is overrated & overestimated. Can you imagine construction workers living in condos and landed properties? I can't even imagine them living in HDBs. Their construction companies probably "house" them in "luxurious GCBs" with huge empty land plots. Well, not all workers are involved in the constructions but you get the picture. I would say that 80% of these FTs earn less than 2k/mth and given "privileged" housing.
proud owner
22-09-10, 02:51
Looks like proud_owner is quite bearish on the rental outlook, or should I say the effects of influx in foreign workers on the rental market is overrated & overestimated. Can you imagine construction workers living in condos and landed properties? I can't even imagine them living in HDBs. Their construction companies probably "house" them in "luxurious GCBs" with huge empty land plots. Well, not all workers are involved in the constructions but you get the picture. I would say that 80% of these FTs earn less than 2k/mth and given "privileged" housing.
i sure kana humtum
but seriously ..
ask those who bought MM unit, in anticipation of renting to IRs workers ..
be honest people ..
HOW MANY OF YOU MM OWNERS TRULY END UP RENTING TO IR WORKER?
similarly ..those who bought seletar MM, being lured by 10000 potential work force at aerohub ... will face the same situation ..
devilplate
22-09-10, 10:39
i sure kana humtum
but seriously ..
ask those who bought MM unit, in anticipation of renting to IRs workers ..
be honest people ..
HOW MANY OF YOU MM OWNERS TRULY END UP RENTING TO IR WORKER?
similarly ..those who bought seletar MM, being lured by 10000 potential work force at aerohub ... will face the same situation ..
den ur bigger units partition up and sublet out as many rooms?
Not that bad lah. 20% of those can afford $3k rental out of 100k newcomers means 20k can afford means need 20k rental houses for them (on top of those already here). 20k of private homes is 10% of existing private homes! (but vacancy rate currently only about 5% (but about 3-5% not available for rent because owners choose to leave them vacant!)! Homes not enough! No wonder property prices cheong!). :p
Looks like proud_owner is quite bearish on the rental outlook, or should I say the effects of influx in foreign workers on the rental market is overrated & overestimated. Can you imagine construction workers living in condos and landed properties? I can't even imagine them living in HDBs. Their construction companies probably "house" them in "luxurious GCBs" with huge empty land plots. Well, not all workers are involved in the constructions but you get the picture. I would say that 80% of these FTs earn less than 2k/mth and given "privileged" housing.
Wild Falcon
22-09-10, 21:33
The "new" type of foreigners are the filipinos singles in the service industry and PRCs. 4-5 of them could share a $2500 - $3000 per month condo, with budget of $500 - $800 each. I do have a 3-bedder unit rented out to a 4 Filipinos working at Marina Bay Sands. And many of them prefer condos with facilities so that they can invite their friends over. And they're very house-proud and will renovate the place and keep it clean. When I went to the place to "spot-check", I was pleasantly surprised they have added carpets and other furniture to the place and makes it very cosy.
So what I'm trying to say is, with the internet, it's no longer difficult to find housemates from the same country. Assuming these filipinos, indians working in the service industry, call centers, IR earns between 3.5-5k, each of them could allocate $500-$800 to rental per month to share a good-size condo with facilities in the suburbs.
den bigger units partition up and sublet out as many rooms?
rattydrama
22-09-10, 22:19
Apartments are sizing down, future maybe maids will need to rent a place to stay just like in Hong Kong. More transient workers should continue to be around. This group unlikely to buy Property in SG
Not that bad lah. 20% of those can afford $3k rental out of 100k newcomers means 20k can afford means need 20k rental houses for them (on top of those already here). 20k of private homes is 10% of existing private homes! (but vacancy rate currently only about 5% (but about 3-5% not available for rent because owners choose to leave them vacant!)! Homes not enough! No wonder property prices cheong!). :p
Got to divide that by 4 since the "new FTs" like to "share" a condo
lol
devilplate
23-09-10, 09:44
Got to divide that by 4 since the "new FTs" like to "share" a condo
lol
tats y ppl like proud_owner prefers to buy big units?
Know a foreign talent who invested in an apartment and divide the room internally into small cubicle and rent out to foreign students. Not bad total rental although it is illegal. I doubt there is any contract with them.
devilplate
23-09-10, 11:24
Know a foreign talent who invested in an apartment and divide the room internally into small cubicle and rent out to foreign students. Not bad total rental although it is illegal. I doubt there is any contract with them.
dangerous act....cheapskate
just like those landed partitioned into small domitories:tsk-tsk:
Some PRs are exploiting the system. Just learn from someone who has been a PR did got the PR renewal application rejected recently. Garment must be reviewing the PRs. What if they own a flat and now got PR status rejected? Can they still own a flat? Is that the reason why PRs are getting resale flats and cause the surge in HDB resale prices?
proud owner
23-09-10, 12:14
tats y ppl like proud_owner prefers to buy big units?
becos i like space ... and i feel big units will be in demand
my 2 bedroom apt in manhattan is 1500 sqft .. no bay window,,,no balcony pure living space ..
sorry i am just a sucker for space
devilplate
23-09-10, 12:16
Some PRs are exploiting the system. Just learn from someone who has been a PR did got the PR renewal application rejected recently. Garment must be reviewing the PRs. What if they own a flat and now got PR status rejected? Can they still own a flat? Is that the reason why PRs are getting resale flats and cause the surge in HDB resale prices?
is tat PR whom got PR renewal application rejected, granted an option to take up citizenship instead?
devilplate
23-09-10, 12:17
becos i like space ... and i feel big units will be in demand
my 2 bedroom apt in manhattan is 1500 sqft .. no bay window,,,no balcony pure living space ..
sorry i am just a sucker for space
for own stay and can afford....of coz can justify la...hehe
but how about for rental?
proud owner
23-09-10, 12:20
for own stay and can afford....of coz can justify la...hehe
but how about for rental?
rent to those with family lor
I think PRs have to renew once every 5 years.
is tat PR whom got PR renewal application rejected, granted an option to take up citizenship instead?
rattydrama
23-09-10, 13:22
I think PRs have to renew once every 5 years.
once you finish 2 rounds of 5 year renewal, 3rd application for ask for 10 years.
Wild Falcon
23-09-10, 13:38
I heard of some foreigners - 3 person squeeze into an MM unit :)
Why is it illegal? I thought as long as no overcrowding should be fine?
From my observation in my firm and similar industry, the "expats package" expatriates that come with big family with fat housing allowances and children's international school fees are stagnant, i.e. not increasing significantly. With so many new to-be-completed high-end condos catering to this bunch, I wonder whether those units can be filled up. A lot of new foreigners are the middle managment type who will go for more mid/mass housing.
Know a foreign talent who invested in an apartment and divide the room internally into small cubicle and rent out to foreign students. Not bad total rental although it is illegal. I doubt there is any contract with them.
devilplate
23-09-10, 13:42
I heard of some foreigners - 3 person squeeze into an MM unit :)
Why is it illegal? I thought as long as no overcrowding should be fine?
unauthorised partitioning is illegal...
I'm seeing more expatriates taking SBS, staying at HDB, eating at hawker centers, going Sheng Shiong...
Simply means that those are not real "expats". :D
I'm seeing more expatriates taking SBS, staying at HDB, eating at hawker centers, going Sheng Shiong...
agree with bear...not all foreigners are well to do..some ppl still hv the colonial mentality...stop polluting the young ones.
if whole world population speak their own mother tongue with one able to understanding the other...we all be no. 1
Guess which is higher % hsehld to asians population vs % hsehld to westerners populations with lots of $$$$.
unauthorised partitioning is illegal...
can use office styled partitions. No issue right? Say convert living into another bed room.
If want to add a bath room, buy one that is self enclosed and mask it up with black film. That would do it. Most probably you have to place it in the Kitchen.
For tiolet issues, have to pee in shower or shit elsewhere unless the other tiolet is available.
As long as there's no overcrowding and not a public nuisance, no much of an issue.
Some PRs are exploiting the system. Just learn from someone who has been a PR did got the PR renewal application rejected recently. Garment must be reviewing the PRs. What if they own a flat and now got PR status rejected? Can they still own a flat? Is that the reason why PRs are getting resale flats and cause the surge in HDB resale prices?
very highly possible obvious case...alot of FT buying hdb as an insurance policy ready to cash out when earn enough in singapore...of course they have pty back at home...that is why garmen new policy is to stop this goup of FT to mess around...FT buy HDB make sure pty at home is disposed off 6 months later...:2cents: :2cents:
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