{"id":71432,"date":"2023-12-04T17:22:16","date_gmt":"2023-12-04T09:22:16","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=71432"},"modified":"2023-12-04T17:22:16","modified_gmt":"2023-12-04T09:22:16","slug":"singapores-new-pilot-for-long-stay-serviced-apartments","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/singapores-new-pilot-for-long-stay-serviced-apartments\/","title":{"rendered":"Singapore’s new pilot for ‘long-stay’ serviced apartments"},"content":{"rendered":"
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In a significant move to address the increasing rental demand, the Singapore government has announced the launch of a new category of serviced apartments<\/a>. These apartments, featuring a minimum three-month stay requirement, represent a shift from traditional short-term accommodations. Minister for National Development Desmond Lee<\/a> unveiled this initiative, highlighting its potential to better meet the diverse rental needs in Singapore.<\/p>\r\n

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The pilot project<\/h2>\r\n\r\n\r\n\r\n

The pilot project, part of the Government Land Sales (GLS) program<\/a>, will introduce these new long-stay serviced apartments at two state land sites. Located at Upper Thomson Road<\/a> and Zion Road<\/a>, these sites are set to yield approximately 535 units. This initiative marks a strategic approach to address the evolving housing preferences in the city-state.<\/p>\r\n

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Characteristics of the new serviced apartments<\/h2>\r\n
\"long-stay<\/a>
(Image credit: Max Oh on Unsplash)<\/figcaption><\/figure>\r\n

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Unlike the existing serviced apartments, which require a minimum stay of seven days, these new units cater to longer-term residents. A key feature of this initiative is the prohibition of strata subdivision for sale, emphasising the focus on rental rather than ownership.<\/p>\r\n

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Context and rationale<\/h3>\r\n

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This pilot recognises the varied housing preferences across Singapore’s population. Desmond Lee stressed the importance of a robust rental supply, especially for individuals awaiting their new homes and those in Singapore for work or education. The introduction of these apartments aims to provide more options for these groups.<\/p>\r\n

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Market implications<\/h3>\r\n

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The new serviced apartments are expected to ease competition in the rental market, particularly for those seeking longer stays. Market experts predict that this could lead to a moderation in the asking rents by private landlords. Insights from industry professionals like Desmond Sim of Edmund Tie and Lee Sze Teck of Huttons highlight the potential market shifts due to this initiative.<\/p>\r\n

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Developers’ perspective<\/h3>\r\n

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The pilot presents new challenges and opportunities for developers. Those without prior experience in the hospitality sector may find this a unique venture. Seasoned developers might have an edge, but the project demands a specific skill set in managing serviced apartments.<\/p>\r\n

Read more: <\/strong>HDB rental prices drop for the first time since October 2021<\/a><\/em><\/p>\r\n

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