Rent increase in SG

Majority of the Filipinos here are renting, thus it is no surprise that we are really affected by the increasing rental fees. Expatriates from other countries also feel the impact:

* Singapore Expats
When landlords were asked to give their opinions about this trend in property rentals, they replied in The Straits Times:
"...expatriates had been enjoying extremely low rents since 2003 and owners were 'subsidising' tenants before the increase in rents."
"It's not a matter of raising prices because we're greedy. We get whatever the property will fetch in the market. I wouldn't dare ask for $16,000 if the market rent is $10,000."

The article said that rents have soared by 31.2% over the past year. Thus if the average rent in Aston Mansion is used to be $1700, then it is now around $2230. A previous issue of the newspaper featured a family whose rent rose from $2,400 to $7,200.

Is Singapore becoming an expensive country to live in? What are the alternatives for us? Downgrade from condo to HDB. If you’re renting a unit all by yourself, ask your landlord if it’s OK to invite others to rent vacant rooms. Move from an expensive area to more affordable ones, let's say from Tiong Bahru to Sengkang.
Luckily for me and my husband, we bought our flat before the interest rate hike. Whew! My computation said that we must stay in our flat for 4 years to take back the cash that we spent in down payment and fees. We are now in our 2nd year.
But I don’t think that buying a unit is a good move right now since as I’ve said, loan interest rates have also increased. Anyway, if you really really really can afford it, you’ll be here longer (years), and you think it’s worth it, by all means by your own property. What do I mean by “it’s worth it”? If you’re tired of packing and unpacking your things every year, it is worth it. If you have kids affected by the constant move, buying a property is worth it.


  1. This comment has been removed by a blog administrator.