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Expats intend to move back to Hong Kong as Singapore rentals hit record highs

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2 years ago

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Recently, a 5-room flat at 42a Margaret Drive listed for $1.5 million on property portal raised Singaporeans’ eyebrows, wondering if resale prices of HDB flats moving even closer to million dollars, surging price of overall public housing property.

It’s clear how expensive HDB resale flats are nowadays, with prices increasing for the 11th consecutive quarter (according to Q4 2022 HDB Public Housing Data statistics).

Rising costs and surging demand have also pushed residential rents to their highest on record.

The Financial Times reported that the lack of housing supply caused by delays in construction, coupled with the influx of foreigners, has pushed rental prices to the point where they have overtaken Hong Kong’s for the first time in some central areas.

Last month, the Urban Redevelopment Authority(URA) released the real estate statistics for the fourth quarter of 2022, which shows that rentals of non-landed properties increased by 7.5%, compared to the 8.3% increase in the previous quarter.

For the whole of 2022, rentals of landed properties increased by 28.1% while rentals of non-landed properties increased by 29.8%.

Even rentals are becoming unbearable for expats

Some expats, who were previously interviewed by FT and believed that Hong Kong was the most expensive city, are now considering moving out of Singapore due to the rising cost of living and high rental prices.

For example, a British mother of three arrived in Singapore from Hong Kong two years ago, hoping to find more living space for her growing family.

However, the rental for their four-bedroom flat has now risen 61%, and they have decided to move back to Hong Kong as the cost of living in Singapore continues to increase.

Another 29-year-old Indian, who works as front-of-house staff at a popular restaurant in Chinatown, is now moving to Australia with his fiancée after his S$500 rent more than doubled.

“I can’t see myself getting ahead here, I have no savings now. In Australia, you can afford a car and have a life,” he told FT.

EP and S Pass holders increased 4.5% to 338,000

Two years ago, the Ministry of Manpower (MOM) announced an increment of the minimum wages for the S Passes and E Passes, which are now pegged at S$3,000 and S$5,000, respectively.

However, the government’s measures have not deterred the influx of expats into the city-state.

According to a CNBC report in April 2022, some residents of Hong Kong have been relocating to Singapore due to strict Covid restrictions and rising rental prices in Hong Kong.

Visitor arrivals from Hong Kong to Singapore nearly doubled during that period, with some intending to settle down in Singapore and turning to co-living spaces or serviced apartments.

The FT article also mentioned that Employment Pass and S Pass holders increased 4.5% to 338,000 in the 18 months until the end of June last year.

Although Prime Minister Lee Hsien Loong once promised that the government “must address Singaporeans’ anxieties over foreign work pass holders,” it has been reported that while local IT graduates are currently having a hard time finding tech jobs, engineers are still being transferred from India to work in Singapore.

 

Unreasonable rents

Real estate agents have reported an increase in tenant complaints, with some landlords asking for unreasonable rents, with some even asking for a 60% increase in rent.

They also warn that prices could rise as much as 20% again this year, making it difficult for Singapore to become Asia’s dominant financial hub and attract the best talent, as reported by the FT article.

It is not surprising that some landlords dare to list a coffin-size room, which seems to fit only one single bed, online, and rent it out for S$750.

Some expats are willing to sign a S$7,000 a month, one-year lease for a two-bedroom privately-owned apartment close to the central business district.

As Nicholas Mak, head of research and consultancy at the ERA Realty Network, told FT, “things boil fast” when pressure is applied. It is no doubt that Singapore’s limited land size and a lack of spare capacity result in a rapid increase in property prices here.

The price surge will certainly impact the overall market, including HDB resale flats, which are moving towards million-dollar values that could hardly be affordable to ordinary Singaporeans.

While Hazel Poa, Non-constituency Member of Parliament(NCMP) from Progress Singapore Party (PSP), urged the government to increase the supply of new flats, National Development Minister Desmond Lee had defended that an oversupply could put downward pressure on the Housing and Development Board (HDB) market and incur costs from the vacant housing stock.

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Worries loom over speculative trends in HDB market as S$1M transactions dominate headlines

Four HDB flats at Bidadari’s Alkaff Vista estate recently crossed the S$1 million mark after reaching their Minimum Occupation Period (MOP). The surge in property agent visits prompted residents to put up signs to deter them. Netizens are concerned about speculative trends in the HDB resale market, particularly as properties in mature estates are viewed as lucrative investment opportunities.

Published

1 week ago

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8 October 2024

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Earlier, it was reported that four HDB flats at Bidadari’s Alkaff Vista estate recently crossed the S$1 million mark following the completion of their Minimum Occupation Period (MOP), signalling the rising demand for homes in the centrally located estate.

These high-value transactions took place between August and September 2024, with the highest being a five-room unit that sold for S$1.2 million last month.

The other three, all four-room flats located at Block 106B and Block 106A, changed hands for prices ranging from S$1.08 million to S$1.17 million.

According to HDB’s website, another unit at Block 105A, a low-floor flat, was sold for S$937,500.

Property Agents Flood Estate, Prompting Residents to Put Up Signs to Ward Them Off

In a report by Shin Min Daily News, several residents have complained about being inundated by property agents.

Some residents have reported daily visits from agents, prompting them to put up signs requesting that agents refrain from knocking on their doors, as they have no intention of selling.

At least 200 residents have reportedly placed “Do Not Disturb” signs outside their homes to ward off these unsolicited visits.

According to residents, agents typically knock on doors during weekday evenings, but since the signs were posted, many agents have taken the hint and now leave brochures instead.

Alkaff Vista is a Build-to-Order (BTO) project consisting of four blocks, was initially launched between 2015 and 2016.

Prices for four-room flats ranged from S$433,000 to S$682,000 during that period, depending on factors such as floor level and location, according to PropertyNets.SG.

Social Media Users Fear Rising Housing Costs May Impact Future Generations

Public reaction to these million-dollar flat sales has been mixed, with many expressing concerns on social media about the rising costs of public housing.

Some worry that the trend of million-dollar flats making headlines could make it more difficult for future generations to afford homes.

One comment recalled that the government had previously stated only about 2% of transactions would exceed S$1 million.

He expressed concern for future generations, stating that even with grants, they may still need to pay more than S$500,000 for a new flat.

He questioned how Singaporeans can increase the birth rate while also ensuring sufficient retirement savings.

The comment referred to a recent statement from HDB asserting that public housing in Singapore remains affordable and attainable for citizens.

It noted that million-dollar flats made up only 2 percent of total resale transactions in the past 1½ years.

HDB also pointed out that these high-value flats primarily consist of maisonettes, executive apartments, jumbo flats, and five-room units with desirable features, such as prime locations.

Netizens Voice Concerns Over Speculative Trends in HDB Resale Market

A netizen even questioned whether the current HDB resale market has “become a lottery”, with some hoping to secure en bloc or BTO units in high-demand areas. “This island is one big casino!” he remarked.

Another echoed this sentiment, noting that those who pay over S$1 million for an HDB flat are often individuals who have sold their landed properties and downsized to single-storey flats for retirement, freeing up cash in the process.

Another netizen pointed out that some view properties in mature estates as profitable investment opportunities.

The comment suggesting that buyers are rushing to purchase properties there, hoping to cash in once they are eligible to sell after the five-year mark, potentially earning a fortune for the first owner.

He suggested that if the government sells flats to citizens who no longer need them, it should take the flats back at a reasonable price and resell them to those in need.

He emphasised that these flats should not be placed on the open market, as they must adhere to HDB regulations, noting that HDB properties are not private assets to begin with.

A comment expressed frustration and concern over the government’s allowance of high-value HDB flat sales, which they believe contradicts the purpose of subsidised housing meant for poor and middle-income citizens.

He highlighted perceived loopholes in the system, as rising prices make it difficult for some citizens to afford homes, even with CPF (Central Provident Fund) assistance.

One netizen propose implementing an income ceiling for resale flat buyers and recalling subsidies for those who profit from selling their flats.

The comment also expresses dissatisfaction with the current Minimum Occupation Period (MOP), suggesting that it is ineffective in curbing speculative trends.

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Housing

Four Bidadari flats sold for over S$1 Million after reaching MOP

Bidadari’s Alkaff Vista estate has witnessed a surge in million-dollar HDB resale flat sales, with four units surpassing S$1 million after meeting their Minimum Occupation Period (MOP). A five-room flat fetched S$1.2 million in September. Meanwhile, some residents have resorted to placing signs on their doors to deter persistent property agents.

Published

2 weeks ago

on

7 October 2024

By

SINGAPORE: Bidadari’s Alkaff Vista estate has seen a surge in million-dollar Housing and Development Board (HDB) resale flat transactions, with four units crossing the S$1 million mark following the completion of their Minimum Occupation Period (MOP).

These high-value sales took place between August and September, showcasing the rising appeal of the centrally located estate.

Alkaff Vista, a Build-to-Order (BTO) project consisting of four blocks, was initially launched between 2015 and 2016.

Prices for four-room flats ranged from S$433,000 to S$682,000 during that period, depending on factors such as floor level and location, according to PropertyNets.SG.

Now, four out of the five resale flats in the estate have fetched prices exceeding S$1 million.

A check on HDB website indicated that the highest resale transaction recorded so far is a five-room flat at Block 106A Bidadari Park Drive, which sold for a staggering S$1.2 million in September.

This unit, located mid-level in the 17-storey block, is classified as an “improved” flat model.

Other significant transactions include:

  • A high-floor unit at Block 106B, sold for S$1.17 million.
  • A flat at Block 106A, between the 13th and 15th floors, sold for S$1.13 million.
  • A unit at Block 106B, between the 10th and 12th floors, sold for S$1.08 million.

Meanwhile, the only unit sold below S$1 million was a low-floor flat at Block 105A, which changed hands for S$937,500.

Demand Fueled by Strategic Location and Design

Alkaff Vista’s strategic location plays a pivotal role in the skyrocketing prices.

Situated within a five-minute walk from Potong Pasir MRT Station and a 13-minute walk from Woodleigh MRT, the estate offers residents easy access to Singapore’s public transport network.

Both stations lie on the North-East Line (NEL), providing seamless connectivity to key destinations like Dhoby Ghaut and HarbourFront.

Bidadari, part of the mature estate of Toa Payoh, has been designed as a “community in a garden,” featuring vast green spaces, parks, and walkable areas.

The 10-hectare Bidadari Park adds to the estate’s appeal, offering residents a serene environment amidst urban living.

Additionally, the estate is located near well-regarded schools such as Cedar Primary and Secondary, Maris Stella High School, and Stamford American International School, making it a prime choice for families.

PropertyNets.SG also attributes the rise in prices to the estate’s well-thought-out housing layouts and proximity to these public transport hubs, which significantly increase its attractiveness to potential buyers.

Residents at Alkaff Vista Urge Property Agents to ‘Stop Knocking on Our Doors’

While some homeowners have benefited from the lucrative resale market, not all are pleased with the increased attention.

According to Shin Min Daily News, several residents have reported being bombarded by property agents who visit their homes nearly every day, prompting some to place signs outside their doors, requesting that agents refrain from knocking as they have no intention to sell.

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