Sparked by the death of an Indian worker hit by a private bus, the riot in Little India on Sunday night saw hundreds of foreign workers attacking police and burning vehicles, making it the first major riot in Singapore in more than 40 years.
While it stunned many, analysts believe the riot is unlikely to have any major impact on property owners or renters in the area.
Shawn Tan, CEO and Key Executive Officer of property agency M.O.R.E., said: “There are not many public and private homes there and usually the location caters to a specific group of property seekers who may have their businesses in that area or the preference to stay within their own community.”
Alan Cheong, Research Head at Savills Singapore, noted that renters may use the situation to depress rents, but it is still “up to the landlords holding power to be able to ward off such opportunists”.
“Potential buyers will also use the excuse of rioting to get a better deal,” he added.
One landlord who owns an apartment in Little India told PropertyGuru that his tenant had already requested to revise the contract from two years to one year and reduce the monthly rent from S$2,500 to S$2,300.
Meanwhile, analysts reckon that commercial rents may be affected in the short term.
However, given the scarcity of available units, “demand will not decline as there will still be a specific group of people who will want to rent at those areas”, Tan explained.
In other news, National Development Minister Khaw Boon Wan said the government is open to the idea of housing a number of foreign workers on nearby offshore islands.
In a written response to a query made in Parliament, the Minister also said not all offshore islands are suitable, due to the lack of supporting infrastructure such as sewers and other planning considerations.
Mr Khaw added that the government will continue to house foreign workers properly, without causing inconvenience either to them or to Singaporeans.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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