“Rising Tents Vexed Tenants”
In response to the artcle posted on “Rising Tents Vexed Tenants” by C S Sri Ram on 22nd Sept 2006
I would like to make a humble contribution in my capacity as a HDB Flat Owner and a Part time Housing Agent as well.
I fully agree with Vijaya Halgeri ‘s view that the rental price is fully subject to demand and supply. Fixing a rental price is fully within the discretion of the Owner and it should be allowed to do so.
The owner or the Housing agent could never force a tenant to agree for that price which the Owner intend to get for the room or the flat. Of course the Owner is engaging the agent to get a higher value for the flat as a tenant engaging an agent to get a flat within their budget. Again, when you say budget its again the whole discretion of the tenant, his financial position and his affordability for that particular type of flat. No other factor can force him to pay more.
There was a friend who posted saying that his friend took a two-bed room flat in Chinese garden for Sgd 1,100/-… and our friend said it was ridiculous. Yes you can only ridicule him. None else.
I had a 3 Room Flat at Yishun Ave 5 rented out only for Sgd 650/-. After six months, the Owner wanted to increase the Rent. Another tenant proposed for Sgd 850/- for the same and the owner had to replace with him. The Owner had to service his mortgage Loan, he would go only for more.
Also look at the demands put forth by Indian tenants when looking for flats. They want a place which is VERY near to MRT, Cooking should be allowed, Should have Broad Band, and Aircon and importantly should be within 15 minutes traveling distance to their work place. Hope you have seen similar requirements in Ezlink itself.
I myself have a common room for rental in North which is about 10 minutes walkable distance to MRT (and I walk everyday) and tenants whom visited to view complained me that its too far from MRT. After all these, I have it furnished with aircon, offered them TV with SCV, has broadband wireless and asked only sgd 350/-
JTC flats are those flats forfeited by HDB from the Owners due to non-payment of installments or surrendered by the Owners themselves for various reasons. So Govt., can do nothing to increase the JTC Flats.
That’s is the reason you do not get to choose your flats from JTC. They only notify how many rooms, sq meters, location etc. You do not even have a choice to peep inside the houses unless you sign and collect the keys.
Singapore Govt. always encourages price fixing based on demand and supply. The ample example here is COE for Motors, which you have to bid. If you want to rent a food stall in a food court you have to bid, and want to lease a Coffee shop in any location you have to bid. You bid higher only when you think you can afford and make a return on your investments. The same way is also practiced by the Owners and executed by the Agents (not always… seen my case above for a common room)
Even HDB itself do not have a fixed price for its flats. Its pricing mechanism includes demand for a particular location or particular flat. Asking HDB to fix a rental price is equivalent to asking HDB to fix the price of HDB across the Island. It can’t fix the price, but it only valuates as it provides Loan for the Buyers.
Why HDB Owners Renting out the flats/Rooms? HDB’s are mainly built to provide home for Singaporeans. Some Singaporeans who do not make their ends meet want to rent their rooms/flat. Mind you, HDB can’t always help those who can’t afford to pay. The rental income they get is used to pay the HDB Installments. If Govt intervenes and regulate here, it will be too difficult for Singaporeans to own a home. Anyway renting out their Sweet Home to others is not always good news for a Owner. Many a times it is a hard decision taken by them. A tenant can’t understand how much effort they had to put to own a home and how much they dreamt of living in their sweet home.
“Why all of a sudden it is rising”.. There is an answer in the question itself. Rising… why it is rising. Have you ever seen so many job advertisements in Ezlink before? Or have you seen such a high volume influx of foreigners to Singapore after 1997. Do you also know that after 9/11, only now Salaried Professionals are experiencing salary hikes, job switch etc. Why? The economy is doing well. New jobs are created, Consumer behavior has changed, and Prices are going up for Housing. There is a price for everything. Owners who purchased their flats before 1997 for huge amount of money are gaining their hopes only now, as they see there is a slight increase in Real Estate Index.
I seek your understanding to know about the Market situation and realize how it is like owning a Home. I also request fellow Indians to consider staying a bit away from the CBD where you will get a good deal. Do not look at Owners as someone waiting to steal your money. They had their own problems… including Foreigners taking away their job opportunities.
.
I fully agree with Vijaya Halgeri ‘s view that the rental price is fully subject to demand and supply. Fixing a rental price is fully within the discretion of the Owner and it should be allowed to do so.
The owner or the Housing agent could never force a tenant to agree for that price which the Owner intend to get for the room or the flat. Of course the Owner is engaging the agent to get a higher value for the flat as a tenant engaging an agent to get a flat within their budget. Again, when you say budget its again the whole discretion of the tenant, his financial position and his affordability for that particular type of flat. No other factor can force him to pay more.
There was a friend who posted saying that his friend took a two-bed room flat in Chinese garden for Sgd 1,100/-… and our friend said it was ridiculous. Yes you can only ridicule him. None else.
I had a 3 Room Flat at Yishun Ave 5 rented out only for Sgd 650/-. After six months, the Owner wanted to increase the Rent. Another tenant proposed for Sgd 850/- for the same and the owner had to replace with him. The Owner had to service his mortgage Loan, he would go only for more.
Also look at the demands put forth by Indian tenants when looking for flats. They want a place which is VERY near to MRT, Cooking should be allowed, Should have Broad Band, and Aircon and importantly should be within 15 minutes traveling distance to their work place. Hope you have seen similar requirements in Ezlink itself.
I myself have a common room for rental in North which is about 10 minutes walkable distance to MRT (and I walk everyday) and tenants whom visited to view complained me that its too far from MRT. After all these, I have it furnished with aircon, offered them TV with SCV, has broadband wireless and asked only sgd 350/-
JTC flats are those flats forfeited by HDB from the Owners due to non-payment of installments or surrendered by the Owners themselves for various reasons. So Govt., can do nothing to increase the JTC Flats.
That’s is the reason you do not get to choose your flats from JTC. They only notify how many rooms, sq meters, location etc. You do not even have a choice to peep inside the houses unless you sign and collect the keys.
Singapore Govt. always encourages price fixing based on demand and supply. The ample example here is COE for Motors, which you have to bid. If you want to rent a food stall in a food court you have to bid, and want to lease a Coffee shop in any location you have to bid. You bid higher only when you think you can afford and make a return on your investments. The same way is also practiced by the Owners and executed by the Agents (not always… seen my case above for a common room)
Even HDB itself do not have a fixed price for its flats. Its pricing mechanism includes demand for a particular location or particular flat. Asking HDB to fix a rental price is equivalent to asking HDB to fix the price of HDB across the Island. It can’t fix the price, but it only valuates as it provides Loan for the Buyers.
Why HDB Owners Renting out the flats/Rooms? HDB’s are mainly built to provide home for Singaporeans. Some Singaporeans who do not make their ends meet want to rent their rooms/flat. Mind you, HDB can’t always help those who can’t afford to pay. The rental income they get is used to pay the HDB Installments. If Govt intervenes and regulate here, it will be too difficult for Singaporeans to own a home. Anyway renting out their Sweet Home to others is not always good news for a Owner. Many a times it is a hard decision taken by them. A tenant can’t understand how much effort they had to put to own a home and how much they dreamt of living in their sweet home.
“Why all of a sudden it is rising”.. There is an answer in the question itself. Rising… why it is rising. Have you ever seen so many job advertisements in Ezlink before? Or have you seen such a high volume influx of foreigners to Singapore after 1997. Do you also know that after 9/11, only now Salaried Professionals are experiencing salary hikes, job switch etc. Why? The economy is doing well. New jobs are created, Consumer behavior has changed, and Prices are going up for Housing. There is a price for everything. Owners who purchased their flats before 1997 for huge amount of money are gaining their hopes only now, as they see there is a slight increase in Real Estate Index.
I seek your understanding to know about the Market situation and realize how it is like owning a Home. I also request fellow Indians to consider staying a bit away from the CBD where you will get a good deal. Do not look at Owners as someone waiting to steal your money. They had their own problems… including Foreigners taking away their job opportunities.
.
Comments