Due to lower requirements due to stricter policies for overseas workers and a large source of new houses, the Singaporean home rental market is expected to face difficulties in 2014. Rentals are forecast to stagnate or even fall, which are the first decrease seen in four decades. The Urban Redevelopment Authority’s Personal Residential Rental Indicator, which measures home rentals, grew 1.35% during the first three quarters of 2013, while the estimated growth for the whole year is 1.45%, a fall from the 2.1% recorded the previous year.
The next years are expected to bring an upsurge in lease Alternatives For Singaporean tenants, which will cause them to rent closer to the city centre or the MRT stations. This increase in decisions is very likely to damage the rental returns of jobs which are not well positioned, which means competition from the Pasir Ris 8 Condo home rental market might just harden, with rental prices possibly dropping by up to 5 percent in 2014. This scenario is expected to favour flats that are larger and better located. As a result of this, demand for shoebox units is expected to decrease in 2014, meaning this sort of condo units will be hampered from the leasing market trends.
With about 16,000 new houses completed in 2013 and accessible at the Beginning of 2014, and yet another about 19,000 new homes to be finished in the end of 2014, the distribution is very likely to surpass demand. Additionally, the tighter foreign worker policies will also weaken demand for flats for rent. In 2014, the volume of leasing transactions is expected to remain high, as more units are always entering the marketplace.
Because tenants normally prefer new flats, the chance of them terminating their prior leases and receiving new landlords is extremely high. Bear in mind that as the property owner, you are responsible for upkeep and workability of your house and you therefore should make sure that you get the property at the best possible condition or when you are fully aware of the extra costs it will attract and you are comfortable with it.
Furthermore, a surge of new workers signing a shorter lease is anticipated to be brought about by the trend they are placed on contract basis. The shorter lease is typically less than a year, suggesting a potentially substantial volume of rentals, and the willingness to pay a greater rent. In contrast, occupancy rates are forecast to continue their reduction the vacancy rate of 6.1 percent in September 2013 is predicted to rise to up to 8 percent in 2014.