'Rents may drop' with foreign tenant quotas
Agents say this will result from rush to secure tenants before caps are hit
Published on Jan 18, 2014 9:03 AM
Rents in areas popular with foreigners could fall significantly because of new quotas which cap how many public flats can be sublet to non-citizens, according to property agents.
"If your price is too high, then others who are renting out might get in there first," said Dennis Wee Realty's Mr Jimmy Chua, pointing out that landlords may scramble to secure tenants before the quotas are reached by cutting rents.
On Thursday, it was announced that no more than 11 per cent of units in any single block can be rented out to foreigners to prevent enclaves forming. The limit is 8 per cent for each Housing Board (HDB) neighbourhood.
Only 1 per cent of such neighbourhoods and blocks have so far hit the caps. These areas are in central, Jurong West, Queenstown, Sengkang and Clementi, where rents are some of the highest among Singapore's neighbourhoods. According to Singapore
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!