Government piloting ‘long-stay’ apartments in two GLS sites

Government piloting ‘long-stay’ apartments in two GLS sites

It is vital to maintain a “healthy rental stock” for those that need to rent. For example, those waiting to pick up the keys to their homes as well those in Singapore working or studying.

The new class will cater for those looking for a longer stay. They will no longer be competing with the potential tenants of shorter-stay apartments, such as tourists and business travellers.

Market observers believe that removing renters from residential markets could also lower the rents demanded by private landlords.

To meet the demand for rentals, a brand new category of serviced apartments will be released soon. These apartments have a longer stay requirement: at least 3 months.

Serviced apartments like these will fill a void in the market. Most landlords – private or public – prefer two-year contracts.

The pilot will help the government determine market demand, before determining if it is possible to offer this service more widely.

Some Singaporeans are more open to renting than others.

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This will also affect the business models for developers. They must either manage serviced apartments or work together with an operator. Although there may not be an impact on the GLS top bid, it is still possible that there will be some.

The Government Land Sales (GLS), programme confirmed list, for private residential homes for the 2nd half of this calendar year will include two state sites that are going up for auction in early December.

On these sites, Upper Thomson Road (and Zion Road), a percentage of the gross area will be reserved for long-stay apartments. This yields a possible total of about 535 apartment units.

Like the existing serviced residences that have a 7-day minimum stay requirement, these new long-stay residences cannot be subdivided strata for sale.

The Urban Redevelopment Authority revealed that the rate of growth in private residential rental market has decreased to 0.8 percent in the 3rd quarter 2023. This is down from 2.8 percent in the prior quarter.

It was at this time that the number private homes finished reached a new high of 9 013, the highest completion rate for a quarter since Q2 2016 Cumulatively speaking, the number completed units for 2023’s first three quarters was 17,199.

URA has stated that it expects a total of approximately 20,400 homes to be completed by the end of the year. This will be the highest annual supply completion in the last three years.

Singaporean residential rents rose in the past 2 years as a result of a strong supply and tight market. Analysts, however, noted a gradual easing of the market with signs that demand has stabilized and asking prices have decreased.

SRX & flash estimates revealed that rents for private housing fell by 0.2 percent in October. Rents for the public sector fell 0.4 %, marking their first decline in 2021.

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