GLS sites will test ‘long-stay apartments’ on two locations
According to data from the Urban Redevelopment Authority, the growth of rental prices in the private housing market has slowed down in the third quarter 2023 from 2.8% to only 0.8%.
In Q2 2016, the number of private houses completed had reached its highest level ever. The cumulative number of completed homes for the first three-quarters of 2023 reached 17,199. This is three times more than the same period in 2016.
URA estimates that a total of 20,400 private houses will be completed in 2018, the highest number of homes ever.
It will also be easier for those looking to stay longer to find a serviced apartment, since they don’t need to compete with tourists and business travelers who might prefer shorter stays.
Market watchers believed that by removing these tenants from the rental market, they could help reduce the asking rents for private landlords.
The pilot allows the government gauge market demand prior to a more extensive study of whether this category could be offered.
Although the vast majority Singaporeans aspire to be homeowners, we have heard from some that they would consider renting.
In order to ensure that those who require rental accommodation, including those waiting for their keys, and those studying or working in Singapore, can find a place to live, it is essential to keep a healthy supply.
SRX and 99.co released estimates that showed rents on the private market fell by 0.2 percent during October. Rents at public housing dipped by 0.4 per cent, the first decrease since 2021.
The serviced apartment market will fill in a gap on the market as the majority of landlords, whether they are in private or public housing, prefer a lease term of two years.
It may also change the business models of developers who are looking to build or sell. They will be required to either manage or work with a serviced apartment operator. There may be no impact on the highest bid for GLS sites.
Singapore residential rents have been on the rise in recent years, due to tight supply coupled with strong demand. Analysts have noted that there are signs of stabilisation, as well as lower prices and a decrease in the demand.
In order to meet the growing demand for rental apartments, a new serviced apartment class with a three-month minimum stay will be launched soon.
In the Government Land Sales Programme’s (GLS) confirmed list for residential private housing, for the second-half of this year, the government will pilot a new category at two state land plots that are up for sale early in December.
The sites on Upper Thomson Road and Zion Road are slated to have serviced apartments for long-term stays. This could yield a total of approximately 535 units.
As with existing serviced flats, which require a stay of at least seven days, the new apartments for long-term stays cannot be subdivided into smaller units.