Overall median monthly rentals inched up in the second quarter, helped by the demand from those fleeing from high private property rents. Foreigners and locals who have sold their homes in a hot market are among those boosting HDB rents, experts say.

Overall, median rentals for two- and three-room flats were flat at $1,200 and $1,500 respectively. But four-room, five-room and executive flats saw median rental increases of between $50 and $100 a month from the previous quarter.

Four-room flat monthly rentals rose to $1,800 from $1,750, five-room flat rentals were $2,000 from $1,900 and executive flat rentals climbed to $2,100 from $2,000 in the previous quarter.

Median rentals for executive flats in Queenstown also passed the $3,000 mark for the first time since the fourth quarter of 2008, rising to $3,200. There were, however, fewer than 10 of such sublets.

Five-room flats median monthly rentals in the central region also hovered over the $3,000 benchmark for the second consecutive quarter at $3,150.

Executive flats in Jurong East saw one of the largest jumps, of $300, from $2,100 to $2,400, while areas such as Bukit Batok and Sengkang generally saw higher rentals across all flat types.

Property experts say these second quarter median rentals have hit the peak previously achieved in the second half of 2008. They expect further rise and new benchmarks to be set later this year.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said as private rentals rose steadily, some tenants were likely to look for cheaper alternatives.

‘The rate of rental increase might have outpaced the rental budget and so some tenants might prefer an HDB flat in a better location,’ he said.

HSR executive director (agency) Jeffrey Hong said that the strong demand is partly due to an influx of foreigners this year into sectors such as information technology, as companies have started hiring again.

Some Singaporeans who sold their property to cash in on high property prices have also decided to rent temporarily instead of buying immediately, he said.

Ms Hwa Hui-en, 24, a social worker, has been renting a four-room flat with four others near Ghim Moh for $2,000 a month since November last year.

She is worried her rent might rise when her lease ends in November as some of her friends have had to move out of rented homes due to higher asking rents.

‘Rentals are quite costly… We’re splitting the rent among five people and are sharing rooms now. If we don’t, it will probably take up a huge portion of our salary, maybe even one quarter of it.’

HDB said subletting deals rose about 15 per cent from 6,606 in the first quarter to 7,595 in the second – taking total approved sublet units to 30,500.

Source: Straits Times, 24 Jul 2010

For subletting that started from that date or later, registration must be done within seven days from when the subletting began.

This requirement is in line with ongoing efforts by the Ministry of Home Affairs (MHA) to eradicate loan-sharking activities and help protect HDB residents from being victimised by such activities.

When some people borrow money from loan sharks, they move to a new location but give the loan sharks their previous addresses. This way, if they fall behind on payments, those living at their former addresses will be the ones harassed by the loan sharks.

The new rule enables HDB to capture the particulars of those who rent rooms in HDB flats and allows MHA to trace the movement of borrowers.

HDB may impose a penalty on those who fail to register their subletting. The penalty could involve a fine of up to $3,000, and for recalcitrant cases, HDB could take back the flat.

For further information or inquiries, the public can call HDB’s toll-free Subletting of Flat & Rooms Enquiry Line on 1800-555-6370.

Source: Straits Times, 16 Jul 2010

HDB has also issued a reminder to those whose tenancies started before February, that their six months grace period for registration will end at the end of this month.

Those who sublet from February 1 are required to register with HDB within seven days from the start date of the subletting.

Flat owners are also required to notify HDB when they renew or terminate their subletting contracts, and when there are changes to their subtenants’ particulars.

There’s however no need to seek prior approval for subletting of rooms.

HDB says this requirement supports the Home Affairs Ministry’s ongoing efforts to eradicate loansharking activities, and to better protect residents.

The housing board says it may impose a penalty on those who flout the rule.

The penalty may involve a fine of up to $3,000 or for recalcitrant cases, compulsory acquisition of their flats.

Source: Channel News Asia, 15 Jul 2010

Rental rates for residential units have tracked the dizzying rise in private property prices, with rents for condominiums posting a significant increase of 5.8 per cent over the first five months of this year.

Based on data from the Urban Redevelopment Authority (URA), median rentals of non-landed residential properties in January amount to $30.54 per square metre (psm) but were propelled higher to $32.41 psm in May.

Rentals for units in the central region are even higher at $36.89 psm in May.

The maximum rental per month for non-landed residential properties in the central region amounts to $114.58 psm, while minimum rental amounts to $11.64 psm.

Condominiums in the east and west recorded median rents of $27.68 psm and $27 psm, respectively, for the same period.

Meanwhile, rentals in the north-east region hit $26.39 psm, while north region rentals stand at $24.47 psm.

As for the rest of the country, maximum rentals range from $33.65 psm to $60.87 psm, while minimum rentals range from $10.18 psm to $14.36 psm.

Market watchers said the significant increase in residential rents is due to an improving economy and a robust property market.

Donald Han, managing director of Cushman and Wakefield, attributed the rise to landlords looking to pocket higher returns from the bullish growth by increasing rents.

“Businesses have started to relocate to Singapore and are bringing in a lot of foreign workers, which have increased demand for residential housing, as compared to the first half of last year, when companies were shedding staff,” said Mr Han.

However, Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said the rental increase is due to a sharp drop in housing supply.

In the fourth quarter of last year, the number of demolitions jumped to 1,441 – more than the 1,400 units available.

Mr Tan attributes this to an increased number of collective sales, which resulted in more units being demolished during that period.

Unable to make up for the drastic loss, the first quarter of this year, only saw 1,407 units available for occupancy.

“The higher number of demolitions is probably a one-off effect. The numbers of demolished units returned to about 400 units-odd in the first quarter of this year,” added Mr Tan.

With a lot fewer units available and the ongoing high demand for residential properties, rentals hence saw a considerable increase.

Barring drastic changes, he expects rentals to stabilise in the coming months.

“Once the effect of the sharp reduction in housing stock wears off, the rise in rentals will stabilise and may even correct in the coming quarters unless demand is ramped up suddenly but that does not seem to be the case,” he said.

Mr Han expects rentals to increase to about 5 per cent to 8 per cent by the end of this year, in line with the bright outlook for Singapore’s growth.

With growing yields, it is also an ideal time for home owners looking to lease out their properties to hedge against inflation and volatile markets.

“Yields have risen slightly to 3 per cent to 3.8 per cent and are likely to go up over 4 per cent at end of the year. With the low interest rate of 1 per cent to 1.2 per cent, this is a good time for residential yields,” said Mr Han.

Source: Today, 9 Jul 2010

On Jan 12 this year, HDB announced that with effect from Feb 1, 2010, flat owners who sublet rooms in their HDB flats will have to register with HDB within seven days of doing so. They are also required to notify HDB when they renew or terminate their subletting contracts, and when there are changes to their subtenant’s particulars.

This rule applied to all and existing cases of rooms sublets.

For new cases of subletting from Feb 1, 2010, owners are required to register with the HDB within seven days from the start date of subletting.

For subletting tenancies that commenced before Feb 1, 2010, owners are given a six-month grace period from Feb 1, 2010 to register their subletting with HDB.

HDB may impose a penalty on those who flout the rule. The penalty may involve a fine of up to $3,000 or, for recalcitrant cases, compulsory acquisition of their flats.

Source: Business Times, 4 Jun 2010

All flat owners are now required to register the sub-letting arrangements, under a new rule introduced earlier this year.

From Feb 1, anyone sub-letting a room has been given seven days to register, but a six-month grace period expiring July 31 was granted for those who had sub-let before the beginning of February.

In all, 20,258 flat owners had registered their subletting of rooms with the HDB, as of April 30.

That figure includes flat owners with sub-letting tenancies commencing both before and from Feb 1, the board said.

Part of the reason the new rule was introduced was to try to curb the worsening activities of loan sharks.

Some people who borrow from loan sharks and who rent rooms in HDB flats have been known to use their former addresses when borrowing.

That leaves a flat’s new occupants to face possible harassment from the illegal moneylenders.

The rule was implemented to track those who borrow from loan sharks.

‘There is no need to seek prior approval for subletting of rooms,’ the HDB said.

However, flat owners are required to notify the HDB when they renew or terminate their sub-letting contracts, as well as when a new sub-let starts.

Registration can be done online or at any HDB branch office.

The board said that those who flout the rule may be fined up to $3,000. For recalcitrant cases, compulsory acquisition of their flats could be carried out.

Source: Straits Times, 4 Jun 2010

The reason? More Singaporean renters are clamouring for lower energy costs and an eco-friendly lifestyle.

Despite the higher cost of energy-efficient appliances, landlords are moving towards investing in energy-saving air-conditioning units, for example, as a green apartment can command rents which are up to 10 per cent above the market rate, said estate agents.

Five agents my paper spoke to reported seeing more clients with a preference for energy-efficient household appliances.

According to them, this trend started a couple of years ago and has been picking up in the last half a year.

These days, about three out of 10 clients ask about the energy efficiency of appliances, compared to almost none three years ago, they said.

One of the estate agents, Mr Michael Lim, 43, said that, thanks to campaigns by environmental advocates, people now know that energy-efficient appliances – though usually pricier – will help them save on their utility bills in the long run. People are also more aware of the benefits of going green.

“Landlords are willing to invest in these appliances because they become a bargaining tool,” said Mr Lim.

Estate agent Susan Lim, 37, said: “People want to do their part for the environment.

They’re willing to pay more rent not just because of the money they will save from electricity bills, but also because they want to lead an eco-friendly lifestyle.”

Appliances have to be awarded three ticks and above under the National Environment Agency’s (NEA) labelling scheme to qualify as energy-efficient. The highest number of ticks which can be awarded is four.

NEA recently released figures which showed that sales of energy-efficient appliances have increased. It said that sales of energy- efficient air-conditioners went up by more than 20 per cent from last October to March, compared to the three months prior to the period.

Mr Kelvin Ng, 42, who just moved to his second home, decided to furnish his first one with energy-efficient appliances.

The graphic designer said: “Buying energy-efficient appliances is a good investment, as the tenants and I would benefit.” Mr Ng’s four-room Housing Board flat in Bedok is being rented out for $2,500 a month, $100 above his expectations.

In this case, the estimated savings from just three energy- efficient appliances, not counting lights, is over $300 per year.

Source: my paper, 4 Jun 2010

Ivan Tey, who is 35, owns a four-room flat in Jurong West.

Although he had rented the flat to other tenants, he approached different housing agents in October and November last year to look for prospective tenants to rent the flat to.

He found four different tenants and collected rental deposits from them.

The tenants later realised Tey had signed tenancy agreements with other tenants and found other tenants living in the flat.

They then separately made police reports.

Tey’s lawyer, Mr Joseph Chen, told the court that Tey committed the offences as he was in financial difficulty and had to support two young children.

He said Tey’s father is receiving treatment for cancer and urged the court to impose a shorter jail sentence.

Source: Channel News Asia, 24 May 2010

They should also avoid making large payments in cash, its spokesman said.

When it comes to dealing with property agents, the Consumers Association of Singapore (Case) said that tenants should use accredited agents and check with the property firms to ensure that these are bona fide agents, before engaging their services.

Dr Tan Tee Khoon, chief of Singapore Accredited Estate Agencies, said tenants could do an online check on the Inland Revenue Authority of Singapore’s website, to make sure landlords are the genuine homeowners before they sign tenancy agreements or make any payments.

‘Online scams are dangerous because one can easily conceal his identity and it’ll be hard to trace the crime back to him and if he works fast enough, he can fleece people just like that,’ said Dr Tan.

Source: Straits Times, 14 May 2010

AS THE expatriate population grows, con men have started trawling Singapore-based rental websites, targeting foreigners who are looking to rent properties here.

Posing as owners of choice properties such as condominiums in District 10, they give potential tenants fake addresses and even pictures of well-furnished homes to trick unsuspecting foreigners into wiring down payments to them.

The police did not give details on how many people have been cheated in online property rental scams.

However, its statistics showed that one person fell victim to a property rental scam nearly every day for the past two years.

Police figures showed that there were 324 reports lodged last year from victims who claimed they were cheated in rental scams. In 2008, the figure was 355.

The number includes those who were fleeced after responding to advertisements and paying the down payments, only to find out that their landlords did not even own the properties.

Property experts told The Straits Times they are aware of such online rental scams, and have told their expatriate clients they should check with their companies’ human resources departments to help them find apartments.

When The Straits Times recently posted a notice on some of these locally based property websites, posing as an expatriate looking for an apartment, three people claiming to be Singaporeans living overseas responded the same night.

Giving the excuse that they were not in Singapore, they said they could not arrange for any viewing of the apartments.

Instead, they sent images of well-renovated and well-furnished rooms, purportedly taken from inside the units.

However, a check showed that two addresses led to shops in Far East Plaza, and the other to a condominium in Mount Elizabeth Road which has not even been built yet.

When pressed for a viewing or for the unit number of the apartment, all three broke off contact.

An American expatriate working in the food and beverage industry here fell victim to a ruse earlier this year and lost $1,500 to a con man.

The man, who gave his name only as Marcus, was approached after he posted on a website here that he was looking for rental accommodation.

The con man e-mailed him photographs he claimed were of an apartment in South Bridge Road, and asked for $1,500 as rental and a deposit for the unit.

The con man even sent him a contract, and Marcus paid up because ‘the apartment looks pretty good in the photos’.

But the moment the money was wired to a London bank account, the ‘landlord’ said the room had been rented out and promised to send the money back.

After a week, the ‘landlord’ stopped replying. ‘That was when I knew I had been scammed,’ said Marcus, who filed a police report in the United States.

Filipino system analyst Manuel Nacionales, 44, almost became another victim when he went apartment-hunting online in February this year.

He had posted a notice on a website after his rental lease in a Hougang flat expired. Within a day, a man claiming to be a Singaporean working in Britain e-mailed him, saying that he had an apartment in town for rent.

Said Mr Nacionales, who eventually backed out of the deal: ‘He wanted me to wire $1,100 and said he would send the keys only after he got the money. Thankfully my colleagues cautioned me against it.’

Source: Straits Times, 14 May 2010