Singapore's soaring rents are becoming a political problem
https://www.afr.com/property/reside...-becoming-a-political-problem-20230508-p5d6oo
Expats aren’t the only ones feeling the pinch of rents in Singapore rising at the fastest pace in the world.
The pain is trickling down to young singles like Sonam who are largely shut out of the nation’s subsidized housing program and starting to question the government’s resolve to tackle the problem. The 33-year-old tech worker, a life-long supporter of the ruling People’s Action Party, moved to Thailand after her landlord raised her rent by 70% for a two-year lease. She plans to support the opposition in the next election.
Last month the government announced a bold move to double the stamp duty to 60% for foreigners buying homes. “To have such steep increases for foreigners certainly point towards the ruling party starting to build its narrative” for the vote, said Nydia Ngiow, a managing director at BowerGroupAsia, a policy advisory firm. “This adds to the speculation that the elections could be held earlier than 2025.”
In a national address last week, Finance Minister Lawrence Wong — who is positioned to succeed Lee — acknowledged that prices have soared, but said incomes have kept pace. “In Singapore, the prime minister has to be a real estate agent,” he said. “So I’m learning and brushing up my skills.”
Singapore has largely defied a global property slowdown as an influx of wealth from China and other countries fans the market. Home prices have jumped for 12 straight quarters, even as they decline in cities from Hong Kong to London.
With so many people priced out of the market, demand for rentals has soared. Rents for private apartments and public housing surged about 32% and 27% respectively in March from a year earlier, though landlords often demand more. Singapore has topped New York with the world’s fastest pace of rental growth for high-end properties.
While the rental hikes have impacted expats more acutely since they are less likely to own homes, a survey last year showed that two in three Singaporeans between the ages of 22 to 29 are choosing to rent due to insufficient savings. Belle, a Singaporean content creator renting a shared flat, would like to see a cap on rent increases. She too is considering voting for an opposition party after previously supporting the PAP.
A new pilot program offering hostel-like public housing for low-income singles was meanwhile likened on social media to prisons.
https://www.afr.com/property/reside...-becoming-a-political-problem-20230508-p5d6oo
Expats aren’t the only ones feeling the pinch of rents in Singapore rising at the fastest pace in the world.
The pain is trickling down to young singles like Sonam who are largely shut out of the nation’s subsidized housing program and starting to question the government’s resolve to tackle the problem. The 33-year-old tech worker, a life-long supporter of the ruling People’s Action Party, moved to Thailand after her landlord raised her rent by 70% for a two-year lease. She plans to support the opposition in the next election.
Last month the government announced a bold move to double the stamp duty to 60% for foreigners buying homes. “To have such steep increases for foreigners certainly point towards the ruling party starting to build its narrative” for the vote, said Nydia Ngiow, a managing director at BowerGroupAsia, a policy advisory firm. “This adds to the speculation that the elections could be held earlier than 2025.”
In a national address last week, Finance Minister Lawrence Wong — who is positioned to succeed Lee — acknowledged that prices have soared, but said incomes have kept pace. “In Singapore, the prime minister has to be a real estate agent,” he said. “So I’m learning and brushing up my skills.”
Singapore has largely defied a global property slowdown as an influx of wealth from China and other countries fans the market. Home prices have jumped for 12 straight quarters, even as they decline in cities from Hong Kong to London.
With so many people priced out of the market, demand for rentals has soared. Rents for private apartments and public housing surged about 32% and 27% respectively in March from a year earlier, though landlords often demand more. Singapore has topped New York with the world’s fastest pace of rental growth for high-end properties.
While the rental hikes have impacted expats more acutely since they are less likely to own homes, a survey last year showed that two in three Singaporeans between the ages of 22 to 29 are choosing to rent due to insufficient savings. Belle, a Singaporean content creator renting a shared flat, would like to see a cap on rent increases. She too is considering voting for an opposition party after previously supporting the PAP.
A new pilot program offering hostel-like public housing for low-income singles was meanwhile likened on social media to prisons.
