Rental Rate to go up

**peterng8** · 20-09-10, 20:13

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

**Geylang OKT** · 20-09-10, 23:44

Hello Agent

**Condorich** · 21-09-10, 03:10

Originally Posted by peterng8

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

Need to say something for posting.

**Condorich** · 21-09-10, 03:10

duplicated

**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=proud owner]

Originally Posted by 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?

**kane** · 21-09-10, 10:45

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

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

Originally Posted by devilplate

just say this is the golden era for ASIA

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

Originally Posted by proud owner

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

**peterng8** · 21-09-10, 12:25

Originally Posted by kane

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 .

**peterng8** · 21-09-10, 12:27

Originally Posted by Geylang OKT

Hello Agent

I love your avatar....

I love to attack fish ball ...

**devilplate** · 21-09-10, 12:30

Originally Posted by peterng8

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 .

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?

**peterng8** · 21-09-10, 12:52

Originally Posted by devilplate

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?

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.

Originally Posted by devilplate

just say this is the golden era for ASIA

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

Originally Posted by Wild Falcon

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

**hyenergix** · 21-09-10, 18:51

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

Originally Posted by hyenergix

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

Originally Posted by devilplate

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) ..

**pmet** · 22-09-10, 02:34

Originally Posted by proud owner

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

Originally Posted by pmet

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

Originally Posted by proud owner

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?

**teddybear** · 22-09-10, 11:12

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!).

Originally Posted by pmet

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.

Originally Posted by devilplate

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

**pmet** · 23-09-10, 04:22

Originally Posted by teddybear

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!).

Got to divide that by 4 since the "new FTs" like to "share" a condo

lol

**devilplate** · 23-09-10, 09:44

Originally Posted by pmet

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?

**DC33_2008** · 23-09-10, 10:58

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

Originally Posted by DC33_2008

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

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