{"id":40512,"date":"2021-05-26T08:00:59","date_gmt":"2021-05-26T00:00:59","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=40512"},"modified":"2022-06-13T17:27:16","modified_gmt":"2022-06-13T09:27:16","slug":"latest-movement-curbs-wont-affect-rental-market","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/latest-movement-curbs-wont-affect-rental-market\/","title":{"rendered":"The latest movement curbs won\u2019t put a dent on the rental market. Here\u2019s why."},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p><span style=\"font-weight: 400;\">The rental market has been pretty robust for the past several months. <\/span><a href=\"https:\/\/www.srx.com.sg\/research\/61091\/both-condo-and-hdb-rents-increase-13-on-lower-volumes-in-april-2021\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Rents for condo and HDB flats rose by 1.3% in April<\/span><\/a><span style=\"font-weight: 400;\"> even as volumes decreased. In fact, condo rents have been increasing for four straight months. In the meantime, HDB rents have gone up for the tenth consecutive month.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But with<\/span> <span style=\"font-weight: 400;\">Phase 2 (Heightened Alert) happening, there\u2019s some concern that it will affect the rental market. Despite the latest movement restrictions until 13 June (fingers crossed), we think it\u2019s not going to slow down the rental market. Here\u2019s why.\u00a0<\/span><\/p>\n<h2><b>Construction delays\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One main cause of the recent rental surge is that buyers are expecting longer delays in the completion of their homes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In early April, the <\/span><a href=\"https:\/\/www.mnd.gov.sg\/newsroom\/parliament-matters\/q-as\/view\/written-answer-by-ministry-of-national-development-on-managing-the-construction-backlog-of-bto-flats-that-have-been-delayed-due-to-the-covid-19-pandemic\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Ministry of National Development (MND) announced that 85% of 89 BTO projects have been delayed for up to six to nine months<\/span><\/a><span style=\"font-weight: 400;\"> due to labour and supply shortages.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And it\u2019s not just BTO projects that are facing delays. Various construction projects including private residential, commercial and industrial projects are facing the same issue too.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then came the restrictions on visitors and long-term pass holders coming from <\/span><a href=\"https:\/\/www.channelnewsasia.com\/news\/singapore\/covid-19-travel-history-to-india-cannot-enter-singapore-14672986\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">India<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.channelnewsasia.com\/news\/singapore\/bangladesh-nepal-pakistan-sri-lanka-travel-visitors-covid-19-14719842\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Bangladesh, Nepal, Pakistan and Sri Lanka<\/span><\/a><span style=\"font-weight: 400;\">. India and Bangladesh are also where most of the construction workers are from. So buyers will have to expect an <\/span><a href=\"https:\/\/www.channelnewsasia.com\/news\/singapore\/hdb-bto-flat-sale-exercise-may-launch-covid-19-delay-14880694\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">additional waiting time of three months for their homes<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<figure id=\"attachment_40510\" aria-describedby=\"caption-attachment-40510\" style=\"width: 600px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/05\/rental-surge-construction.jpg\" class=\"img-link media-img img-link media-img\"><img decoding=\"async\" class=\"wp-image-40510\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/05\/rental-surge-construction.jpg\" alt=\"Condo under construction\" width=\"600\" height=\"392\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/05\/rental-surge-construction.jpg 1000w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/05\/rental-surge-construction-150x98.jpg 150w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a><figcaption id=\"caption-attachment-40510\" class=\"wp-caption-text\">The recent ban on workers from South Asian countries has exacerbated the construction delays.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">The longer delays will drive more people to go for rental housing, especially for those who can no longer live with their families and need an alternative accommodation.\u00a0<\/span><\/p>\n<h2><b>Low supply of interim rental housing<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">For those currently waiting for their BTO and face difficulties finding an alternative accommodation, they can apply for interim rental housing such as the <\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/parenthood-provisional-housing-scheme\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Parenthood Provisional Housing Scheme (PPHS)<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, supply for PPHS flats is limited, with <\/span><a href=\"https:\/\/www.mnd.gov.sg\/newsroom\/parliament-matters\/q-as\/view\/written-answer-by-mnd-on-whether-there-is-an-oversubscription-of-hdb-flats-under-the-parenthood-provisional-housing-scheme-in-light-of-the-projected-bto-construction-delays-coupled-with-increased-prices-in-the-property-market-due-to-the-pandemic\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">HDB offering only 160 flats under the scheme last year<\/span><\/a><span style=\"font-weight: 400;\">. Due to the construction delays, HDB saw demand for the flats nearly double as it received 2,350 applications in 2020. This was nearly twice of the 1,370 applications received in 2019.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since the success rate of applying for interim rental housing with HDB is very low, we can expect more people turning to the open rental market while they wait for their BTO to be completed.\u00a0<\/span><\/p>\n<h2><b>More people moving out due to WFH<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Now that work-from-home is the default again, people are spending more time at home. And for some, it can be a challenge when there\u2019s more than one person in the household working from home.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">(Like whenever your father\/mother\/brother\/sister\/spouse\/partner has a scheduled call at the same time as you, isn\u2019t it frustrating when you\u2019re already comfortable in your spot, but have to carry your laptop and relocate to another room for the call? And if you\u2019re required to switch on your camera during the call, you still have to do some setting up to <\/span><\/i><i><span style=\"font-weight: 400;\">hide your messy house or room<\/span><\/i><i><span style=\"font-weight: 400;\"> to get a decent background.)\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">As people crave for more space and privacy, the stay-home arrangement may prompt more to move out.\u00a0<\/span><\/p>\n<h2><b>High property prices<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">We\u2019re not just seeing a surge in rents, but also property prices for both resale HDB flats and condos. In fact, <\/span><a href=\"https:\/\/www.srx.com.sg\/research\/61031\/hdb-resale-prices-continue-rising-for-ten-straight-months-in-april-2021-year-on-year-prices-increase-108\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">HDB resale flat prices have been on the rise for the tenth consecutive month<\/span><\/a><span style=\"font-weight: 400;\">. Likewise, <\/span><a href=\"https:\/\/www.srx.com.sg\/research\/61061\/condo-resale-prices-grow-15-in-april-2021-volumes-estimated-to-hit-11-year-high\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">prices of resale condos have been steadily increasing for several months<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With <\/span><a href=\"https:\/\/www.todayonline.com\/singapore\/cash-over-valuation-back-spotlight-rising-property-demand-drives-resale-prices\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">more flats being sold above valuation<\/span><\/a><span style=\"font-weight: 400;\">, the cost of buying a resale flat now can be too high for some. For those who can\u2019t wait any longer, instead of buying resale, they turn to the rental market while they wait for the price to drop.\u00a0<\/span><\/p>\n<h2><b>People are still arriving from overseas\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Currently, Singapore is <\/span><a href=\"https:\/\/www.channelnewsasia.com\/news\/singapore\/work-pass-holders-entry-curbs-singapore-stops-new-applications-14764108\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">not accepting new entry applications for work pass holders from higher-risk countries<\/span><\/a><span style=\"font-weight: 400;\"> to curb the spread of Covid-19.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite the various border restrictions in place, citizens, PRs, long-term pass holders and students are still arriving. There are also professionals and dependents, especially from the lower-risk countries, that are coming in.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This group of people may look for rental housing first as they settle down, propping up the rental market.\u00a0<\/span><\/p>\n<h2><b>Low rental supply<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Right now, there\u2019s a high occupancy rate as people renew their leases. This can be due to their houses being still under construction. Foreign professionals may also be extending their stay here due to the travel restrictions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On top of that, construction delays have reduced the number of new homes available for rent.\u00a0<\/span><\/p>\n<h2><b>Availability of digital house viewing<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The latest restrictions may have decreased the number of physical house viewings that agents can conduct. But it may not necessarily cause a dent in the rental market.\u00a0<\/span><\/p>\n<figure id=\"attachment_40513\" aria-describedby=\"caption-attachment-40513\" style=\"width: 600px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/05\/rental-surge-digital-house-viewing.jpg\" class=\"img-link media-img img-link media-img\"><img decoding=\"async\" class=\"wp-image-40513\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/05\/rental-surge-digital-house-viewing.jpg\" alt=\"Woman doing remote house viewing on her laptop. \" width=\"600\" height=\"400\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/05\/rental-surge-digital-house-viewing.jpg 1280w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/05\/rental-surge-digital-house-viewing-150x100.jpg 150w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a><figcaption id=\"caption-attachment-40513\" class=\"wp-caption-text\">Can&#8217;t view the house physically? Now more properties can be viewed remotely.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Driven by the restrictions during CB last year, the property sector has been transitioning to new technologies. Whether it\u2019s through Zoom or video, more properties on the market can now be viewed remotely.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This makes it easier for potential tenants to view properties without having to go for physical viewings. Compared to last year, agents, landlords and tenants are now more prepared to close deals remotely.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ultimately, all these mean that the rental market may not be affected substantially by the latest movement curbs. So it\u2019s good news for landlords. But for potential tenants looking to rent, you\u2019ll have to be prepared to fork a higher rent.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you found this article helpful, 99.co recommends <\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/tenant-tips-negotiating-your-rent-in-singapore\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Tenants, here\u2019s an effective 7-step plan to negotiate rent in SG<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/property-investors-landlords-survive-2020-recession\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">7 things Singapore landlords MUST DO to survive 2021<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Looking for a property to buy or rent? Find your dream home on<\/span><a href=\"http:\/\/99.co\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> Singapore\u2019s largest property portal 99.co<\/span><\/a><span style=\"font-weight: 400;\">!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The rental market has been pretty robust for the past several months. Rents for condo and HDB flats rose by 1.3% in April even as volumes decreased. In fact, condo rents have been increasing for four straight months. In the meantime, HDB rents have gone up for the tenth consecutive month.\u00a0 But with Phase 2&hellip;<\/p>\n","protected":false},"author":111,"featured_media":40511,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"no","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[57131,53590],"tags":[56366,56171,54782,56367,56368],"persona":[],"class_list":{"2":"type-post","14":"entry","15":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The latest movement curbs won\u2019t put a dent on the rental market. Here\u2019s why. - 99.co<\/title>\n<meta name=\"description\" content=\"Rents for both condo units and HDB flats have been rising for some time now. And the surge is probably not going to slow down despite the latest restrictions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.99.co\/singapore\/insider\/latest-movement-curbs-wont-affect-rental-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The latest movement curbs won\u2019t put a dent on the rental market. Here\u2019s why.\" \/>\n<meta property=\"og:description\" content=\"Rents for both condo units and HDB flats have been rising for some time now. And the surge is probably not going to slow down despite the latest restrictions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.99.co\/singapore\/insider\/latest-movement-curbs-wont-affect-rental-market\/\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/99dotco\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-05-26T00:00:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-13T09:27:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2021\/05\/rental-surge-couple-stressed-e1652167404201.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"667\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Virginia Tanggono\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@99dotco\" \/>\n<meta name=\"twitter:site\" content=\"@99dotco\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Virginia Tanggono\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/latest-movement-curbs-wont-affect-rental-market\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/latest-movement-curbs-wont-affect-rental-market\/\"},\"author\":{\"name\":\"Virginia Tanggono\",\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/#\/schema\/person\/0955a51981be4227cfc74bd63e9c428b\"},\"headline\":\"The latest movement curbs won\u2019t put a dent on the rental market. 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