Decline in Singapore rents blamed on fewer banking expats
Decline in Singapore rents blamed on fewer banking expats
With fewer bankers and oilmen coming in the country, Singapore rents have been on a downward spiral
More foreign workers are trickling into Singapore than ever and yet residential rents are still taking the plunge.
Citing data from the Singaporean Ministry of Manpower, CNBC reports that the number of foreign workers in the city-state rose by more than 22,000 in 2015. This figure excludes domestic helpers.
However, data from the Singaporean government also shows that the rental price index has plummeted by 10 percent since 2013.
Four Seasons Park, a condominium in District 10, saw a 2,200-2,300 sq-foot unit leased for only SGD7,800 Singapore dollars a month in April, dramatically down from SGD10,000 in 2013, per CNBC.
A dearth of aliens coming into the lucrative finance and oil sectors apparently reconciles this disconnect.
Bankers, highly sought after by landlords for their generous housing allowances, are leaving the city-state or not coming altogether.
More: Alternative short-term rentals gaining popularity in Singapore
“There’s almost like zero relocation here (among bankers),” Kelly Tang Robinson, an agent with Land Vista Property Network, was quoted by CNBC.
In addition, the financial sector has been under pressure by the Singaporean government to hire locals over foreigners even as the oil price slump is deterring more foreign hires, according to corporate service provider Rikvin.
“With the banking economy not doing so well, it’s better to use locals as they have to pay more for foreigners,” Rikvin chief operations officer Satish Bakhda explained to CNBC.
Singapore’s pharmaceutical and chemical industries are hiring more workers today, Robinson said..
Hong Kong has been mirroring the Singapore situation awhile. The city has recently seen a decline in corporate packages among banking expats, leaving an increasing number of luxury apartments untouched.
Read next: 5-room HDB flat shatters Singapore real estate record
Source: Property Report