As more companies in Singapore focus on controlling costs to beat inflation, a growing number of expatriates are seeing their housing allowances being cut resulting in them moving out of pricey homes in the city centre to budget-friendly locations in the city fringe and suburbs, according to a PropertyGuru report.
Expat nationals typically form the bulk of renters, and with prices in the mid-range market anywhere from $4,000 to $7,000 per month, leases are likely to be signed under the tenants name rather than the company, noted the report.
Hence, those with a limited budget of $2,500 to $4,000 per month are likely to consider the suburban market.
“It seems that many expat professionals with families who are based in the CBD are focused on reducing household expenses and deciding it would make better financial sense to live within the suburbs,” PropertyGuru said.
At the same time, with more offices shifting their operations out of the city to suburban areas, expats are choosing to rent homes close to their workplace.
For instance, many expats who work in Changi Business Park rent condos and HDB flats in surrounding estates like Bedok, Simei, Tampines and Tanah Merah, the report stated.
Overall rents of private units fell by 3.0 percent in 2014 compared to a 0.9 percent increase in the year before, revealed recent data from the Urban Redevelopment Authority (URA).
Specifically, rents for suburban units dropped the most by 6.4 percent in the year.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
