There is good news for people looking for rental accommodation in Singapore. The minimum duration for renting a property is now three months. Earlier this was six months. The change in the minimum duration stay was brought in by the Urban Development Authority due to an increase in demand from people like students and academics visiting Singapore universities and institutions for higher learning as well as professionals coming to Singapore for short work assignments.
The shorter lease duration will facilitate students with more flexible accommodation arrangements and also help property owners earn more income. The people requesting for the shorter minimum duration of 3 months prefer private residential properties due to their affordability over serviced apartments and hotels. Private residential properties also offer a greater choice of locations and range in unit sizes.
The decision of URA to shorten the minimum duration stay to 3 months was based on a survey taken in 2015 where the majority of respondents wanted the minimum stay of 6 months reduced. The Authority is closely monitoring the rental market and will assess whether the recent decision taken needs further review.
According to the latest data collected by the Singapore Tourism Board (STB), around 60% of people visiting Singapore in 2015 stayed in hotels while 20% stayed with their relatives and friends. The remaining 20% stayed in service apartments, hostels, or other types of accommodations available at their preferred location.
Despite the new change brought in, homeowners who use home sharing platforms like Roomorama or Airbnb are not allowing minimum duration stay of 3 months. The new minimum stay duration is only applicable to private homes which have been approved for residential use.
If you look at the data, you can see that 260,000 tourists have used the Airbnb board to find accommodation when visiting Singapore. According to latest data, Singaporeans rent their space for average 41 nights in a year and earn an income of S$5,100. Even now you can see around 300 listings for renting accommodation on the Airbnb website.
The new change in rental accommodation is not limited to shorter minimum duration alone. According to the new law enacted in February, authorities have right to barge into residential properties to find out if the residents are renting the space illegally. Despite the new law, the malpractice of illegally renting out space has not stopped completely.
CEO of PropNex Realty Ismail Gafoo has said the shorter minimum duration is a welcoming change that will boost the real estate market. The flexibility regarding leasing is beneficial to both parties; landlords and tenants. The rental market is sluggish in Singapore and the shorter minimum period will enable the landlords to increase the rentals by 20% in comparison to longer leases. Having said that a large number of landlords prefer the earlier longer duration lease as searching for new tenants every now and then and flushing out the older one can be hectic for everyone.
If you prefer buying a condo instead of renting one, head to Modern Martin project by Guocoland coming up in the mainland to view the show suites. The project offers a diverse range of choices in terms of residential units in the form of 2 Bedroom, 3 Bedroom, and 4 Bedroom luxury apartments. Estimated prices for each unit can be found by contacting a real estate agent.