Long-time residents of Chip Bee Gardens (pictured) near Holland Village were displeased when they found out they can no longer lease the residential properties there for an indefinite period, according to media reports.
Based on rules imposed by the Singapore Land Authority (SLA) in 2012, government-owned landed homes, like the terraced houses in Chip Bee, can no longer be rented out for an unspecified period.
The residents only became aware of the new rule when they went to renew their leasing agreements, and they were given a final two-year term, which is only offered to those nearing the nine-year tenure limit.
When the two-year period has passed, the properties will be rented out via a bidding exercise. But if there is no third party who wants to lease the premises, the existing tenant will be given another term of up to nine years.
Before the new rule was introduced, some tenants had occupied government properties for many consecutive terms, SLA explained. Furthermore, the new policy “allows for greater transparency and ensures that anyone who is interested in renting these properties has an equal opportunity”. Some of these properties are also needed by agencies for other uses and developments.
Chip Bee comprises 20 retail shops, 40 apartments and 349 terraced houses, 90 percent of which are occupied. Residents currently pay a monthly rent of between $3,000 and $5,800, while its strata commercial units are leased out for $6,700 to $12,000 per month, added SLA which manages the properties there.
Photo by Terence; Wikimedia Commons
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
