HDB investigates 300 cases for unauthorised subletting
Posted: 28 July 2010 1037 hrs
SINGAPORE: The Housing and Development Board (HDB) is investigating 300 cases for unauthorised subletting with four owners losing their units and six fined for illegal subletting so far.
This comes after HDB stepped up enforcement against unauthorised subletting and conducted 2,600 checks on HDB flats in the first five months of this year.
Of the 300 cases, 59 cases are suspected to have infringed the subletting rules.
Meanwhile, the four flat owners who lost their units did not occupy the flats they bought and sublet without HDB’s approval.
Of the 2,600 checks, 1860 were identified from HDB’s routine inspections while the remaining 740 were based on feedback by the public.
The checks were a four-fold increase compared with the 690 inspections carried out from August to December 2009.
Cases where flat owners lock up one room and sublet the rest of the flat without physically staying in the unit will be treated as unauthorised subletting if home owners do not meet the minimum occupation period and did not seek HDB’s approval to sublet their flats.
Flat owners are reminded to seek HDB’s approval if they intend to sublet their flats.
They must also register subtenants if they sublet rooms. - CNA/vm
Wednesday, July 28, 2010
Illegal subletting: 4 lost flats
FOUR home owners have lost their flats in five months after the Housing Board found they had illegally sublet their apartments.
Six others were fined as a results of 2,600 checks done from January to May this year - four times the number of checks in the preceding five months. Of the 300 cases still under investigations, 59 are suspected to have infringed subletting rules.
The figures was revealed in a HDB statement released on Wednesday morning. In March, the HDB said it would enforce strictly against flat owners who illegally sublet their flats.
Flat owners have to fulfil minimum occupation periods of up to five years before the
y can sublet their whole flats, and obtain approval before doing so. Those who sublet rooms must register their tenant details with the HDB within seven days. Those who flout the rules face fines and compulsory acquisition of the flats.
One of the four cases of home owners whose flats were re-possessed involved a loanshark debtor who allowed the creditor to sublet his flat in order to repay the loan. He sought HDB's help to regain access to the flat, but did not move in after that.Neither did he evict the sub-tenants despite repeated warnings.
'We wish to emphasise that HDB flats are meant for owner occupation,' said the HDB in its statement. Those who want to report suspected cases of illegal subletting can call 1800-555-6370.
Cases of unauthorised subletting
Case 1 : Blatantly flouted subletting rules
* Mr G was locked out of his own 3-room flat in the western part of Singapore, which he bought with a CPF housing grant. The locks of the main door and letter box were all changed after the flat was sublet illegally. He sought HDB's help to regain entry into his flat.
* Upon further investigation, Mr G then divulged that he had used his flat as collateral for his loan and needed to pay back the moneylender. As a result, he allowed his moneylender to sublet his flat to repay his loan.
* Despite regaining entry into his flat, Mr G did not resume occupation. He also did not evict the subtenants, despite HDB's repeated reminders and even an extension of grace period for him to do so.
* Mr G not only blatantly flouted the subletting rules, but also did not regularise the infringement despite being given various opportunities to do so. He also had no intention of staying at his flat. As such, HDB proceeded to take CA action.
* We wish to emphasize that HDB flats are meant for owner occupation. They are not meant to be used as collateral or security for repayment of debts or loans, except for financing the flat purchase.
* We would also advise residents not to enter into agreements with moneylenders to illegally sublet their flats as a form of repayment.
Case 2 : Flouted rules after one year of flat purchase
* Months of investigation showed that Miss R sublet the flat without HDB's approval a year after she purchased the flat. Miss R did not fulfill the minimum occupation period, and she also did not obtain approval from HDB to sublet her flat. HDB informed that she had to evict the subtenants and resume occupation of her flat. While the subtenants were evicted, she did not move back to her flat. As a result, HDB had no choice but to take action to CA the flat.
Case 3 : Bought flat to sublet while overseas
* Madam P jointly purchased a flat with her husband but stayed overseas all this while. She flouted the rules by subletting the flat illegally without meeting the minimum occupation period or getting approval from HDB. Interviews with the subtenants confirmed that the utilities bills were paid by them. When her marriage broke down, her foreigner ex-husband wrote in to HDB and confirmed that the flat was never intended as their matrimonial home and he has never seen the flat before.
* When Madam P returned to Singapore, she did not resume owner occupation but chose to stay with her family. In view that the flat was illegally sublet and was never intended for owner occupation, HDB proceeded to CA the flat.
Case 4 : Owner did not stay in flat at all, but sublet
* Evidence showed that Mdm C has been staying with her family elsewhere while her flat was illegally sublet to a religious group. The flat was compulsorily acquired on the grounds that the flat was sublet without HDB's approval and owner did not resume occupation.
Six others were fined as a results of 2,600 checks done from January to May this year - four times the number of checks in the preceding five months. Of the 300 cases still under investigations, 59 are suspected to have infringed subletting rules.
The figures was revealed in a HDB statement released on Wednesday morning. In March, the HDB said it would enforce strictly against flat owners who illegally sublet their flats.
Flat owners have to fulfil minimum occupation periods of up to five years before the
y can sublet their whole flats, and obtain approval before doing so. Those who sublet rooms must register their tenant details with the HDB within seven days. Those who flout the rules face fines and compulsory acquisition of the flats.
One of the four cases of home owners whose flats were re-possessed involved a loanshark debtor who allowed the creditor to sublet his flat in order to repay the loan. He sought HDB's help to regain access to the flat, but did not move in after that.Neither did he evict the sub-tenants despite repeated warnings.
'We wish to emphasise that HDB flats are meant for owner occupation,' said the HDB in its statement. Those who want to report suspected cases of illegal subletting can call 1800-555-6370.
Cases of unauthorised subletting
Case 1 : Blatantly flouted subletting rules
* Mr G was locked out of his own 3-room flat in the western part of Singapore, which he bought with a CPF housing grant. The locks of the main door and letter box were all changed after the flat was sublet illegally. He sought HDB's help to regain entry into his flat.
* Upon further investigation, Mr G then divulged that he had used his flat as collateral for his loan and needed to pay back the moneylender. As a result, he allowed his moneylender to sublet his flat to repay his loan.
* Despite regaining entry into his flat, Mr G did not resume occupation. He also did not evict the subtenants, despite HDB's repeated reminders and even an extension of grace period for him to do so.
* Mr G not only blatantly flouted the subletting rules, but also did not regularise the infringement despite being given various opportunities to do so. He also had no intention of staying at his flat. As such, HDB proceeded to take CA action.
* We wish to emphasize that HDB flats are meant for owner occupation. They are not meant to be used as collateral or security for repayment of debts or loans, except for financing the flat purchase.
* We would also advise residents not to enter into agreements with moneylenders to illegally sublet their flats as a form of repayment.
Case 2 : Flouted rules after one year of flat purchase
* Months of investigation showed that Miss R sublet the flat without HDB's approval a year after she purchased the flat. Miss R did not fulfill the minimum occupation period, and she also did not obtain approval from HDB to sublet her flat. HDB informed that she had to evict the subtenants and resume occupation of her flat. While the subtenants were evicted, she did not move back to her flat. As a result, HDB had no choice but to take action to CA the flat.
Case 3 : Bought flat to sublet while overseas
* Madam P jointly purchased a flat with her husband but stayed overseas all this while. She flouted the rules by subletting the flat illegally without meeting the minimum occupation period or getting approval from HDB. Interviews with the subtenants confirmed that the utilities bills were paid by them. When her marriage broke down, her foreigner ex-husband wrote in to HDB and confirmed that the flat was never intended as their matrimonial home and he has never seen the flat before.
* When Madam P returned to Singapore, she did not resume owner occupation but chose to stay with her family. In view that the flat was illegally sublet and was never intended for owner occupation, HDB proceeded to CA the flat.
Case 4 : Owner did not stay in flat at all, but sublet
* Evidence showed that Mdm C has been staying with her family elsewhere while her flat was illegally sublet to a religious group. The flat was compulsorily acquired on the grounds that the flat was sublet without HDB's approval and owner did not resume occupation.
Monday, July 26, 2010
Renting Guide
This document explains how to complete the rental process once you have found a property that you want to rent, and the landlord has verbally accepted your offer. The formal offer is done in form of a 'Letter of Intent'. The landlord officially accepts your offer by signing the 'Letter of Intent'. Your agent or the landlord's agent will typically prepare the necessary documents for the rental.
Rental Documents
Letter of IntentThe 'Letter of Intent' is a proposal from you to the landlord to lease the apartment with the conditions set by you. By signing the document the landlord accepts the conditions, which normally has been agreed verbally beforehand. The tenant typically gives the landlord one month's rental as a good faith deposit at this point.
Typically the Letter of Intent specifies the following:
Term of Lease - Usually 12 or 24 months, with optional renewal of another 12 or 24 months – not with same rent). Also the when the lease is supposed to start. Generally, landlords are reluctant to accept leases less than 12 months, and when the market is good, they actually prefer to have 24 month leases to lock in good rental rates for longer term.
Monthly rental – The 'Letter of Intent' usually only states the amount of rent to be paid.
Good faith deposit – usually one month’s rent. Once the landlord signs the Letter of Intent and accepts the deposit, the landlord promises not to lease the apartment to anybody else. When the tenancy agreement is signed, the good faith deposit will be deducted from the first rental or security deposit.
Security deposit – The amount of the security deposit is usually stated in the Letter or Intent, but not be payable until Tenancy Agreement is signed. The typical security deposit is one month's rent for every 12 months of lease. When the lease term ends, the security deposit will then be refunded without interest. However, the landlord reserves the right to deduct from the deposit all costs, damages and expenses arising from the tenant for breaching any of the covenants stated in the Tenancy Agreement.
Additional requirements – e.g. Diplomatic Clause, Furnishing. The Diplomatic clause is to safeguard the tenant in the event the tenant is no longer employed. Typically it states that you can terminate the lease after 12 months by giving 2 months notice. The 'Letter of Intent' may also state that the property is leased furnished or partially furnished. You should also state in the 'Letter of Intent' if you are planning to sublet any part of the property, or if you plan to have pets in the property. Standard tenancy agreement states that this is subject to landlord's written approval, and you may want to agree this beforehand in order to avoid problems later.
Expiry of 'Letter of Intent' – The Letter of Intent has a clause that specifies a period which within the landlord has to sign it, or it otherwise expires. In case of expiry, the landlord has to return the good faith deposit back to the prospective tenant immediately.
Tenancy AgreementThe 'Tenancy Agreement' is the binding contract to lease the property. It will be signed by both the tenant and the landlord. The 'Tenancy Agreement' will state the same things as the 'Letter of Intent', but in more detail. It is advisable to use the standard tenancy agreement provided by the agencies as a template. At this point you need to furnish the landlord with copy of your passport and employment pass or Identity Card (IC). The landlord will need to check that you are eligible to stay in Singapore as it is illegal for landlords to have illegal immigrants to stay in their property. Also, normally the security deposit and the first month’s rent is payable at this point, minus the good faith deposit given with the 'Letter of Intent'.
You should check at least the following in the Tenancy Agreement:
Tenant's full details – name, address, ID details
Landlord's full details – name, address, ID details
Payment details - including when the rent is due and how it is to be paid
Security deposit – should be 1 month’s rent for every 12 months of lease term
Utilities Deposit
Singapore Power Services (SP Services) will require you to pay a deposit before they will turn on the electricity and water, which you need before you can move in. The deposit will be reflected in your first bill. The deposit currently varies from S$40 to S$800, depending on your residency status as well as what kind of property you are renting. For a foreigner renting a private apartment, the deposit required is currently set as S$500. Please check SP Services website for more details - http://www.spservices.com.sg/
En-bloc – with Singapore's recent 'enforced block sale' fever, many Landlords are including 'en-bloc' clauses to protect them from early termination compensation. If you are renting an older block, make sure that either this clause is negotiated out or reduced otherwise you may be looking at inconvenience and additional costs of moving within the term.
Termination – Typically this includes the Diplomatic Clause on its own, or sometimes accompanied by a reimbursement clause. The latter states that if you exercise the Diplomatic Clause, you will have to reimburse part of the commission the landlord had paid to his/her agent - pro-rated to the remainder of the lease term (for example, if you leave 3 months before the end of a 24-month lease, you will pay the landlord 3/24 of the commission he/she paid to the agent). In most cases, the tenancy agreement does not include this in case the landlord sells the property during the lease period. If there is no specific condition for this, the new owner has to honour the existing tenancy agreement. The tenant will just pay the rent to the new owner.
You should also change the standard Tenancy Agreement if you are planning to sublet any part of the property, or if you plan to have pets in the property. The standard tenancy agreement states that this is subject to landlord's written approval, and you may want to change this at the time of signing in order to avoid problems later.
In any case, you should not be afraid of the legalities and your agent can help you to explain all this and negotiate on your behalf. It is still useful to understand the basic responsibilities, especially as the Singapore law can be considered landlord friendly. For example, if the tenant fails on his/her rental payments, the landlord can get a court order to re-possess the property as well as seize and sell the goods inside the property to recover any rent and legal costs from the tenant. This is contrary to many other countries where it may take years to get rid of uncooperative tenants – if ever.
Inventory of Contents 'Inventory of Contents' is supplementary to the Tenancy Agreement. It lists all the fittings and furniture that is rented as part of the apartment, as well as their present condition. You will need to sign it when you move in. The contents of the property will then be checked against it when you move out. Your agent can help you with checking the inventory and will help you on dealing with the landlord to fix any problems.
Moving In
When you move in, you need to inspect the property against the Tenancy Agreement and the Inventory of Contents provided by the landlord. You will then need to sign the Inventory after the inspection. We would advise you to either take photos of every detail that you think is not in order, or ask the landlord to fix them immediately. This can potentially avoid a lot of problems when you are moving out.
Also, one of the first things that you need to do is to connect the electricity and water – these are not typically provided by the landlord. You need to call SP Services to get them turned on, and you should do this already before moving in as it can take a couple of days.
Moving Out
You should go through the 'Inventory of Contents' and check that everything is as when you were moving in. Normal wear and tear is acceptable, but any breakages or lost items during the tenancy are payable by the tenant. Also, typically the 'Tenancy Agreement' states that when moving out, the apartment is clean and all air conditioning units has been serviced.
Remember that the landlord has every right to deduct any of the expenses from your deposit – and they may seem sometimes arbitrary. Therefore, we really do recommend that when you move in, you do a proper inspection and take photographs for evidence to avoid any misunderstanding. Also, it is usually cheaper for you to fix the problems than what the landlord might quote (e.g. you may not want to pay for getting an electrician to change a light bulb).
Rental Documents
Letter of IntentThe 'Letter of Intent' is a proposal from you to the landlord to lease the apartment with the conditions set by you. By signing the document the landlord accepts the conditions, which normally has been agreed verbally beforehand. The tenant typically gives the landlord one month's rental as a good faith deposit at this point.
Typically the Letter of Intent specifies the following:
Term of Lease - Usually 12 or 24 months, with optional renewal of another 12 or 24 months – not with same rent). Also the when the lease is supposed to start. Generally, landlords are reluctant to accept leases less than 12 months, and when the market is good, they actually prefer to have 24 month leases to lock in good rental rates for longer term.
Monthly rental – The 'Letter of Intent' usually only states the amount of rent to be paid.
Good faith deposit – usually one month’s rent. Once the landlord signs the Letter of Intent and accepts the deposit, the landlord promises not to lease the apartment to anybody else. When the tenancy agreement is signed, the good faith deposit will be deducted from the first rental or security deposit.
Security deposit – The amount of the security deposit is usually stated in the Letter or Intent, but not be payable until Tenancy Agreement is signed. The typical security deposit is one month's rent for every 12 months of lease. When the lease term ends, the security deposit will then be refunded without interest. However, the landlord reserves the right to deduct from the deposit all costs, damages and expenses arising from the tenant for breaching any of the covenants stated in the Tenancy Agreement.
Additional requirements – e.g. Diplomatic Clause, Furnishing. The Diplomatic clause is to safeguard the tenant in the event the tenant is no longer employed. Typically it states that you can terminate the lease after 12 months by giving 2 months notice. The 'Letter of Intent' may also state that the property is leased furnished or partially furnished. You should also state in the 'Letter of Intent' if you are planning to sublet any part of the property, or if you plan to have pets in the property. Standard tenancy agreement states that this is subject to landlord's written approval, and you may want to agree this beforehand in order to avoid problems later.
Expiry of 'Letter of Intent' – The Letter of Intent has a clause that specifies a period which within the landlord has to sign it, or it otherwise expires. In case of expiry, the landlord has to return the good faith deposit back to the prospective tenant immediately.
Tenancy AgreementThe 'Tenancy Agreement' is the binding contract to lease the property. It will be signed by both the tenant and the landlord. The 'Tenancy Agreement' will state the same things as the 'Letter of Intent', but in more detail. It is advisable to use the standard tenancy agreement provided by the agencies as a template. At this point you need to furnish the landlord with copy of your passport and employment pass or Identity Card (IC). The landlord will need to check that you are eligible to stay in Singapore as it is illegal for landlords to have illegal immigrants to stay in their property. Also, normally the security deposit and the first month’s rent is payable at this point, minus the good faith deposit given with the 'Letter of Intent'.
You should check at least the following in the Tenancy Agreement:
Tenant's full details – name, address, ID details
Landlord's full details – name, address, ID details
Payment details - including when the rent is due and how it is to be paid
Security deposit – should be 1 month’s rent for every 12 months of lease term
Utilities Deposit
Singapore Power Services (SP Services) will require you to pay a deposit before they will turn on the electricity and water, which you need before you can move in. The deposit will be reflected in your first bill. The deposit currently varies from S$40 to S$800, depending on your residency status as well as what kind of property you are renting. For a foreigner renting a private apartment, the deposit required is currently set as S$500. Please check SP Services website for more details - http://www.spservices.com.sg/
En-bloc – with Singapore's recent 'enforced block sale' fever, many Landlords are including 'en-bloc' clauses to protect them from early termination compensation. If you are renting an older block, make sure that either this clause is negotiated out or reduced otherwise you may be looking at inconvenience and additional costs of moving within the term.
Termination – Typically this includes the Diplomatic Clause on its own, or sometimes accompanied by a reimbursement clause. The latter states that if you exercise the Diplomatic Clause, you will have to reimburse part of the commission the landlord had paid to his/her agent - pro-rated to the remainder of the lease term (for example, if you leave 3 months before the end of a 24-month lease, you will pay the landlord 3/24 of the commission he/she paid to the agent). In most cases, the tenancy agreement does not include this in case the landlord sells the property during the lease period. If there is no specific condition for this, the new owner has to honour the existing tenancy agreement. The tenant will just pay the rent to the new owner.
You should also change the standard Tenancy Agreement if you are planning to sublet any part of the property, or if you plan to have pets in the property. The standard tenancy agreement states that this is subject to landlord's written approval, and you may want to change this at the time of signing in order to avoid problems later.
In any case, you should not be afraid of the legalities and your agent can help you to explain all this and negotiate on your behalf. It is still useful to understand the basic responsibilities, especially as the Singapore law can be considered landlord friendly. For example, if the tenant fails on his/her rental payments, the landlord can get a court order to re-possess the property as well as seize and sell the goods inside the property to recover any rent and legal costs from the tenant. This is contrary to many other countries where it may take years to get rid of uncooperative tenants – if ever.
Inventory of Contents 'Inventory of Contents' is supplementary to the Tenancy Agreement. It lists all the fittings and furniture that is rented as part of the apartment, as well as their present condition. You will need to sign it when you move in. The contents of the property will then be checked against it when you move out. Your agent can help you with checking the inventory and will help you on dealing with the landlord to fix any problems.
Moving In
When you move in, you need to inspect the property against the Tenancy Agreement and the Inventory of Contents provided by the landlord. You will then need to sign the Inventory after the inspection. We would advise you to either take photos of every detail that you think is not in order, or ask the landlord to fix them immediately. This can potentially avoid a lot of problems when you are moving out.
Also, one of the first things that you need to do is to connect the electricity and water – these are not typically provided by the landlord. You need to call SP Services to get them turned on, and you should do this already before moving in as it can take a couple of days.
Moving Out
You should go through the 'Inventory of Contents' and check that everything is as when you were moving in. Normal wear and tear is acceptable, but any breakages or lost items during the tenancy are payable by the tenant. Also, typically the 'Tenancy Agreement' states that when moving out, the apartment is clean and all air conditioning units has been serviced.
Remember that the landlord has every right to deduct any of the expenses from your deposit – and they may seem sometimes arbitrary. Therefore, we really do recommend that when you move in, you do a proper inspection and take photographs for evidence to avoid any misunderstanding. Also, it is usually cheaper for you to fix the problems than what the landlord might quote (e.g. you may not want to pay for getting an electrician to change a light bulb).
Sunday, July 25, 2010
Average Rental Rates in different parts of Singapore
Average Rental Rates in different parts of Singapore
Ever wondered how much to pay for rental property? Are you thinking you are paying too much and want to look at other options?
Location: HDB Whole Unit/ Private Condo/ Master Room/ Common Room
Admiralty 1975 3925 758 476
Alexandra ---- 3900 ---- ----
Aljunied ---- 3533 1025 654
Ang Mo Kio 2071 3300 723 593
Ayer Rajah ---- 2800 ---- ----
Balestier Road ---- 2940 1050 780
Bedok 1875 3250 783 550
Bedok Reservoir ---- 3500 666 550
Bishan 2033 3533 726 576
Boon Lay ---- 3200 800 591
Buangkok 2000 ---- 1200 660
Bugis ---- 4725 ---- 933
Bukit Batok 2050 3057 710 570
Bukit Gombak 2000 ---- 700 557
Bukit Ho Swee ---- ---- ---- 650
Bukit Merah ---- ---- 1000 703
Bukit Panjang 1733 ---- 733 505
Bukit Timah ---- 3100 1200 800
Buona Vista ---- 3000 1000 680
Central Area 2200 3925 926 758
Chai Chee ---- ---- 700 550
Changi ---- ---- 1125 776
Changi East ---- 2400 1400 800
Changi Village ---- ---- ---- 500
Chinatown ---- ---- ---- 516
Choa Chu Kang 1955 2825 753 534
Clementi 2300 2300 835 599
Commonwealth ---- 4200 875 714
Dhoby Ghaut ---- 6166 1175 1000
Dover ---- 4000 800 658
East Coast ---- 4479 1200 794
Eunos ---- 3500 1133 562
Farrer Park ---- 3583 912 355
Geylang ---- 2300 1125 693
HarbourFront ---- 5750 950 ----
Hillview ---- 2700 1200 850
Holland Village ---- 5260 1700 742
Hougang 1750 2800 687 547
Jalan Besar ---- ---- 1500 502
Jalan Kayu ---- ---- ---- 600
Joo Chiat ---- 2900 733 900
Jurong 2100 3387 806 553
Kallang 2500 ---- 850 571
Katong ---- 3096 ---- 700
Kembangan 2300 3180 1100 780
Kim Seng ---- ---- ---- 650
Little India ---- 2800 1000 ----
Lorong Chuan ---- 3500 ---- ----
Loyang ---- 3500 800 ----
MacPherson ---- 2500 ---- 816
Marina Bay ---- 3750 ---- ----
Marine Parade 2500 2550 ---- 624
Marsiling 1700 ---- 575 511
Marymount ---- ---- 1000 600
Mountbatten ---- 3500 900 515
Newton ---- 3366 1500 ----
Novena ---- 3644 1200 705
Orchard Road ---- 4626 1462 821
Outram ---- 2950 1300 625
Pandan 2000 ---- ---- 450
Pasir Panjang ---- 3000 1175 ----
Pasir Ris 1866 3137 730 559
Paya Lebar ---- 2766 1025 750
Pioneer 2200 ---- 600 525
Potong Pasir ---- 3100 1200 ----
Punggol 2040 ---- 750 564
Queenstown 2350 5250 1000 822
Raffles Place ---- 3800 650 ----
Sembawang 1866 ---- 830 497
Sengkang 1800 3425 871 878
Serangoon 2200 2900 1062 588
Serangoon North 1926 4450 680 607
Siglap ---- 2500 ---- ----
Simei 1966 3296 880 575
Singapore River ---- 4900 ---- ----
St Michaels ---- 2800 ---- ----
Taman Jurong ---- ---- ---- 766
Tampines 1966 2720 766 556
Tanah Merah 1800 3850 ---- 750
Tanglin ---- ---- ---- 650
Tanjong Pagar ---- 3433 1025 740
Tanjong Rhu ---- 4500 ---- ----
Teban Gardens 2000 ---- 800 ----
Telok Blangah 2400 5500 1000 675
Thomson ---- 3500 ---- 650
Tiong Bahru 2566 5100 1220 686
Toa Payoh ---- 3387 897 594
Toh Tuck ---- 4500 1000 ----
Ubi ---- ---- 650 550
West Coast 2300 3533 ---- 587
Whampoa ---- ---- 650 525
Woodlands 1933 2633 710 525
Yew Tee ---- ---- 700 517
Yio Chu Kang ---- 2800 1075 674
Yishun 1766 2566 677 527
Ever wondered how much to pay for rental property? Are you thinking you are paying too much and want to look at other options?
Location: HDB Whole Unit/ Private Condo/ Master Room/ Common Room
Admiralty 1975 3925 758 476
Alexandra ---- 3900 ---- ----
Aljunied ---- 3533 1025 654
Ang Mo Kio 2071 3300 723 593
Ayer Rajah ---- 2800 ---- ----
Balestier Road ---- 2940 1050 780
Bedok 1875 3250 783 550
Bedok Reservoir ---- 3500 666 550
Bishan 2033 3533 726 576
Boon Lay ---- 3200 800 591
Buangkok 2000 ---- 1200 660
Bugis ---- 4725 ---- 933
Bukit Batok 2050 3057 710 570
Bukit Gombak 2000 ---- 700 557
Bukit Ho Swee ---- ---- ---- 650
Bukit Merah ---- ---- 1000 703
Bukit Panjang 1733 ---- 733 505
Bukit Timah ---- 3100 1200 800
Buona Vista ---- 3000 1000 680
Central Area 2200 3925 926 758
Chai Chee ---- ---- 700 550
Changi ---- ---- 1125 776
Changi East ---- 2400 1400 800
Changi Village ---- ---- ---- 500
Chinatown ---- ---- ---- 516
Choa Chu Kang 1955 2825 753 534
Clementi 2300 2300 835 599
Commonwealth ---- 4200 875 714
Dhoby Ghaut ---- 6166 1175 1000
Dover ---- 4000 800 658
East Coast ---- 4479 1200 794
Eunos ---- 3500 1133 562
Farrer Park ---- 3583 912 355
Geylang ---- 2300 1125 693
HarbourFront ---- 5750 950 ----
Hillview ---- 2700 1200 850
Holland Village ---- 5260 1700 742
Hougang 1750 2800 687 547
Jalan Besar ---- ---- 1500 502
Jalan Kayu ---- ---- ---- 600
Joo Chiat ---- 2900 733 900
Jurong 2100 3387 806 553
Kallang 2500 ---- 850 571
Katong ---- 3096 ---- 700
Kembangan 2300 3180 1100 780
Kim Seng ---- ---- ---- 650
Little India ---- 2800 1000 ----
Lorong Chuan ---- 3500 ---- ----
Loyang ---- 3500 800 ----
MacPherson ---- 2500 ---- 816
Marina Bay ---- 3750 ---- ----
Marine Parade 2500 2550 ---- 624
Marsiling 1700 ---- 575 511
Marymount ---- ---- 1000 600
Mountbatten ---- 3500 900 515
Newton ---- 3366 1500 ----
Novena ---- 3644 1200 705
Orchard Road ---- 4626 1462 821
Outram ---- 2950 1300 625
Pandan 2000 ---- ---- 450
Pasir Panjang ---- 3000 1175 ----
Pasir Ris 1866 3137 730 559
Paya Lebar ---- 2766 1025 750
Pioneer 2200 ---- 600 525
Potong Pasir ---- 3100 1200 ----
Punggol 2040 ---- 750 564
Queenstown 2350 5250 1000 822
Raffles Place ---- 3800 650 ----
Sembawang 1866 ---- 830 497
Sengkang 1800 3425 871 878
Serangoon 2200 2900 1062 588
Serangoon North 1926 4450 680 607
Siglap ---- 2500 ---- ----
Simei 1966 3296 880 575
Singapore River ---- 4900 ---- ----
St Michaels ---- 2800 ---- ----
Taman Jurong ---- ---- ---- 766
Tampines 1966 2720 766 556
Tanah Merah 1800 3850 ---- 750
Tanglin ---- ---- ---- 650
Tanjong Pagar ---- 3433 1025 740
Tanjong Rhu ---- 4500 ---- ----
Teban Gardens 2000 ---- 800 ----
Telok Blangah 2400 5500 1000 675
Thomson ---- 3500 ---- 650
Tiong Bahru 2566 5100 1220 686
Toa Payoh ---- 3387 897 594
Toh Tuck ---- 4500 1000 ----
Ubi ---- ---- 650 550
West Coast 2300 3533 ---- 587
Whampoa ---- ---- 650 525
Woodlands 1933 2633 710 525
Yew Tee ---- ---- 700 517
Yio Chu Kang ---- 2800 1075 674
Yishun 1766 2566 677 527
Friday, July 23, 2010
Rental Agent Commission
Singapore Real Estate Agents Commission
This commission guide is for those who wish to engage the professional service of Singapore real estate agent to assist in selling, buying, renting, etc of Singapore properties. One should note that it is by no means rigid, standardised in all cases, and it depends on the service level provided by the agents. It is also subject to change from time to time depending on the market condition.
Private Properties Rental - Singapore
Landlord : 1 month's gross rental (1 month's gross rental for lease between 12months to 24months, plus additional 1/2 month for every subsequent 12months' lease. 1/2 month's gross rental for lease less than 12months.)
Tenant : 1/2 month's gross rental (as service fee)(applicable for rental 2,500 & below per month)
1. Payment upon execution of tenancy agreement. 2. For Co-broke transaction ($2500 & below ) : landlord's agent collect commission from landlord and tenant's agent from tenant. If rent is above $2500, landlord's agent shall pay 1/2 to co-broking agent.
No commission shall be collected by one agency from both landlord & tenant in the same transaction without prior knowledge or written consent of the landlord & tenant, if the gross rental is above $2500 per month.
Singapore HDB Flat / Room Rental
Landlord : 1 month's gross rental (1 month's gross rental for lease between 12months to 24months, plus additional 1/2 month for every subsequent 12months' lease. 1/2 month's gross rental for lease less than 12months.)
Tenant : 1/2-1 month's gross rental (as service fee)(1 month's gross rental for lease between 12months to 24months, and 1/2 month's gross rental for lease less than 12months.)
1. Payment upon execution of tenancy agreement. 2. For Co-broke transaction : landlord's agent collect commission from landlord and tenant's agent from tenant.
No commission shall be collected by one agency from both landlord & tenant in the same transaction without prior knowledge or written consent of the landlord & tenant.
This commission guide is for those who wish to engage the professional service of Singapore real estate agent to assist in selling, buying, renting, etc of Singapore properties. One should note that it is by no means rigid, standardised in all cases, and it depends on the service level provided by the agents. It is also subject to change from time to time depending on the market condition.
Private Properties Rental - Singapore
Landlord : 1 month's gross rental (1 month's gross rental for lease between 12months to 24months, plus additional 1/2 month for every subsequent 12months' lease. 1/2 month's gross rental for lease less than 12months.)
Tenant : 1/2 month's gross rental (as service fee)(applicable for rental 2,500 & below per month)
1. Payment upon execution of tenancy agreement. 2. For Co-broke transaction ($2500 & below ) : landlord's agent collect commission from landlord and tenant's agent from tenant. If rent is above $2500, landlord's agent shall pay 1/2 to co-broking agent.
No commission shall be collected by one agency from both landlord & tenant in the same transaction without prior knowledge or written consent of the landlord & tenant, if the gross rental is above $2500 per month.
Singapore HDB Flat / Room Rental
Landlord : 1 month's gross rental (1 month's gross rental for lease between 12months to 24months, plus additional 1/2 month for every subsequent 12months' lease. 1/2 month's gross rental for lease less than 12months.)
Tenant : 1/2-1 month's gross rental (as service fee)(1 month's gross rental for lease between 12months to 24months, and 1/2 month's gross rental for lease less than 12months.)
1. Payment upon execution of tenancy agreement. 2. For Co-broke transaction : landlord's agent collect commission from landlord and tenant's agent from tenant.
No commission shall be collected by one agency from both landlord & tenant in the same transaction without prior knowledge or written consent of the landlord & tenant.
Thursday, July 22, 2010
Renting a place in Singapore
So you're planning to relocate to Singapore or have just arrived in this tropical island. You will not find white sands and swaying palm trees but a modern city whose people speak the English language in a way which takes you a couple of seconds before you fully understand what they are saying.
The hotel you've been put up at is nice, but at $200 a night, you know you've got to find a new place, and quick. Your stuff from home will be arriving by air or by ship soon. And a hotel just doesn't feel 'homely'.
While Singapore is a modern western society populated by largely English-speaking ethnic Chinese, the similarity to the west does not extend fully into real estate. A country the size of San Diego County, its lack of land translates into a hefty rental for real estate - a bracket that while most Manhattanites and Londoners find reasonable, the rest of us find outrageous.
Rental for an apartment in the heart of downtown Orchard Road, the shopping district, can cost as much as $4 per square foot per month, or about $5,000 for a cosy 1,300 sq ft 3-bdrm apartment. Rentals for bigger apartments, of, say 2,000 to 3,000 sq ft, may cost some $8,000 to $15,000. While senior level expatriates may not have to worry about the rent, more and more expatriates are coming here and getting jobs on local terms and salaries, and rent is usually the biggest component of one's expenses.
What then should one do if after careful calculation, you've figured that you can spare no more than $2,500 (or even less) on getting a place? The first factor in determining the rental of a place here is of course, location. Imagine a Aladdin's magic lamp, which has a similar shape to the island of Singapore. A little above where the lamp's body is joined to its base, imagine a spot no larger than the size of half a penny.
Orchard Road, Bukit Timah & River Valley
Geographically, the area to the south-central of the island, is the Orchard Road / Lower Bukit Timah area which commands the premium rental. A little to the southwest is the River Valley area, a hop away from Orchard Road. Here too the rent is dear, with a new 3-bedroom condo going for around $5,000 to $9,000.
East Coast
With the spout of Aladdin's lamp pointing to your right, run your finger to the base of the spout and up just a tad. Anything eastwards of that would be the East Coast area, a 8-km strip that runs east-west along the southeastern coast of the country that in the last 10 years, have been dotted with new high rise condominiums planted along the entire stretch. Rental here is about $3,500 recently (assuming the same new 1,100sq ft 3-bdrm condo). The area has also become a favorite among expatriates, with its proximity to the airport (about 10 mins away) and the East Coast Park where one can rollerblade or ride a bike for 11 uninterrupted kilometres. You may also want to simply laze on the smouldering beach or enjoy the loads of restaurants offering a variety matched only by the Orchard Road district.
West Coast
Now go to the other end of the island, where the lower handle joins the lamp: the West Coast. Expatriates choosing this area include those who work in or near the Jurong Industrial Town. Rentals in the west coast, like anything away from the prime district, is more affordable, with condos going for about $1,800 for places in Clementi, Buona Vista and Queenstown.
Holland Village
Those who work at the local universities, or those who wish to enroll their children at a popular international school (Tanglin Trust School), and many others who wish to be just outside the Holland Village area, an expatriate-infested enclave with a high density of Starbuck-ish coffee places and even higher density of restaurants offering cuisine from Mexican burritos to Indian curries. Holland Village, located just one kilometre north of Buona Vista and separating it from the prime Bukit Timah area. Rentals there start at $4,000 for a new condo but can be as little as $2,500 for a 10-yr-old unit. Despite its price tag, it remains a favourite with expatriates because of its slight bohemian appeal and high concentration of fellow expats. It is the one place in the country (besides pubs in Clarke Quay - Boat Quay in the evenings) where locals might find themselves equaled in numbers by expats.
Ang Mo Kio, Toa Payoh, Woodlands & Yishun
To the north of the country are several other towns where comfortable housing is available at decent rates. Housing in Ang Mo Kio, Toa Payoh, and Yishun, though far from the city centre (far in Singapore means anything more than a 10-min drive), is easily accessible by the mass rapid transit. The Orchard Road station is all but a quick train ride away from these residential townships, all sitting on the north-south lines, and all well-served by their own train stations. Rental for a condo here go for $1,500 and up. Woodlands, the northernmost town is now a favourite among American expatriates who wish to reside near the Singapore American School, the largest international school in the country. Woodlands is also situated near the Malaysia border and residents in the area frequently commute across the border to purchase commodities and household items at cheaper prices. Rental here can be as low as $1,800 or even lower should you choose to rent a public housing flat (HDB flat).
Housing and Development Board (HDB)
The Housing and Development Board (HDB) was set up as a statutory board to build homes for the people. About 85% of the population live in HDB flats. And approximately 15% in private homes, including condominiums, walkups, landed houses and shophouses.
Renting a Housing and Development Board's (HDB) flat in Singapore is a lot cheaper but these public housing dwellings were built primarily for housing the local masses and do not offer amenities like swimming pools or tennis courts or gyms like condos do (although a sub-genre called HDB Executive Condos do have some facilities). These flats are referred to by the total number of rooms, that is, a 3-bdrm condo would be equivalent to a 5-room flat (add a living room and a dining room to the 3 bedrooms). While it is illegal to rent out the entire HDB flat (remember they are built to house the masses, not allow them to enjoy rental revenue), renting out parts of it is allowed. So many Singaporeans rent out the entire flat while keeping one room locked up. The idea here is owners of these HDB flats will claim that that one locked room is where they are staying, and therefore, they are not renting out the entire flat.
Should you choose to rent a HDB flat, you will find that the going rate starts from $800 for a 5-room flat in the outlying areas (eg Jurong, Pasir Ris) and about $1,100 for one closer to town. Downgrade to a 3-room (a puny 500 sq ft) or 4-room (800 sq ft), and you can find yourself paying as little as $700. But that is really scraping the bottom of the barrel.
What then should you do if the condos cost a tad too much and the HDB sounds too basic and primitive? You can always forego a new condo and go for an older one, which means anything built more than 8 years ago. For the same 3-bdrm condo, you can get one that is about 30% cheaper than the new ones. Go for an even older one, something over 20 years old, and you can find yourself paying close to half what the new ones command. Or if you have a larger household, go for houses.
Housing Grant from HDB
Applicants who have bought their flats directly from HDB or who have used the Housing Grant for the purchase of resale flats from the resale market will be treated as having enjoyed a housing subsidy.
To qualify for the Housing Grant, applicants must be first time applicants and meet the eligibility similar to those for the purchase of a flat directly from HDB.
If you bought your flat from HDB or from the resale market under the Housing Grant Scheme, you can only dispose off your flat after you have owned and occupied it for a period of five years.
If you bought a HDB resale unit without applying for the Housing Grant, you can only sell it after occupation for two and a half years.
A Singapore citizen may only apply to buy a second flat directly from HDB after 10 years from the purchase of the first flat. The sale of this first flat is subject to a graded resale levy imposed by HDB. This resale levy is not applicable to owners of resale flats who did not get the Housing Grant.
As an HDB flat-owner, if you work overseas, you may apply to sublet your flat for the period when you are away.
The period of subletting is not counted as part of the requisite occupation period or time bar to determine your eligibility to:
Resell the flat in the open market;
Invest in a private residential property;
Apply for another flat direct from HDB.
Home Ownership Scheme
A returning Singapore citizen or Permanent Resident can buy an HDB flat under the HDB Home Ownership Scheme.
The scheme allows you to use your CPF savings for the 10% downpayment and monthly repayment of the mortgage loan.
The income ceiling is S$8,000 for a nuclear family and S$12,000 for an extended family. Before a mortgage loan is granted, the buyer will be subjected to a credit assessment and all available CPF savings in the Ordinary Account has to be utilized.
This mortgage loan can be repaid over a period computed on 65 years minus the age of the youngest joint-applicant. It may vary from one year to a maximum of 30 years.
For more information, please contact: Housing and Development BoardHDB HUB480 Lorong 6 Toa Payoh, Singapore 310460Tel : (65) 6490 1111 Tel : (65) 6397 2477 Email: hdbmailbox@hdb.gov.sg
Landed Houses
Houses in Singapore command a disproportionately lower rental so one may pay less for a huge house than for a medium sized condo in the same area. Rentals for houses are more dependant upon the condition of these houses rather than their location. The reasons for these are (a) there are very few new houses for rent - it is the Singaporean dream to live in their own house rather than renting it out. (b) most expats prefer condos as these often come with amenities for their families.
If you prefer more space and privacy, and enjoy the garden and the outdoors, you may choose to live in a house. You will probably have a car and are more mobile. Going further out and away from the central prime districts, one can pay about $4,000 for a 2,500 sq ft 15-yr-old terrace house (like a town house) outside the city when that same rent can only get you a medium sized condo in the same area. It would be almost impossible to locate a decent abode in the central areas for this same budget
The hotel you've been put up at is nice, but at $200 a night, you know you've got to find a new place, and quick. Your stuff from home will be arriving by air or by ship soon. And a hotel just doesn't feel 'homely'.
While Singapore is a modern western society populated by largely English-speaking ethnic Chinese, the similarity to the west does not extend fully into real estate. A country the size of San Diego County, its lack of land translates into a hefty rental for real estate - a bracket that while most Manhattanites and Londoners find reasonable, the rest of us find outrageous.
Rental for an apartment in the heart of downtown Orchard Road, the shopping district, can cost as much as $4 per square foot per month, or about $5,000 for a cosy 1,300 sq ft 3-bdrm apartment. Rentals for bigger apartments, of, say 2,000 to 3,000 sq ft, may cost some $8,000 to $15,000. While senior level expatriates may not have to worry about the rent, more and more expatriates are coming here and getting jobs on local terms and salaries, and rent is usually the biggest component of one's expenses.
What then should one do if after careful calculation, you've figured that you can spare no more than $2,500 (or even less) on getting a place? The first factor in determining the rental of a place here is of course, location. Imagine a Aladdin's magic lamp, which has a similar shape to the island of Singapore. A little above where the lamp's body is joined to its base, imagine a spot no larger than the size of half a penny.
Orchard Road, Bukit Timah & River Valley
Geographically, the area to the south-central of the island, is the Orchard Road / Lower Bukit Timah area which commands the premium rental. A little to the southwest is the River Valley area, a hop away from Orchard Road. Here too the rent is dear, with a new 3-bedroom condo going for around $5,000 to $9,000.
East Coast
With the spout of Aladdin's lamp pointing to your right, run your finger to the base of the spout and up just a tad. Anything eastwards of that would be the East Coast area, a 8-km strip that runs east-west along the southeastern coast of the country that in the last 10 years, have been dotted with new high rise condominiums planted along the entire stretch. Rental here is about $3,500 recently (assuming the same new 1,100sq ft 3-bdrm condo). The area has also become a favorite among expatriates, with its proximity to the airport (about 10 mins away) and the East Coast Park where one can rollerblade or ride a bike for 11 uninterrupted kilometres. You may also want to simply laze on the smouldering beach or enjoy the loads of restaurants offering a variety matched only by the Orchard Road district.
West Coast
Now go to the other end of the island, where the lower handle joins the lamp: the West Coast. Expatriates choosing this area include those who work in or near the Jurong Industrial Town. Rentals in the west coast, like anything away from the prime district, is more affordable, with condos going for about $1,800 for places in Clementi, Buona Vista and Queenstown.
Holland Village
Those who work at the local universities, or those who wish to enroll their children at a popular international school (Tanglin Trust School), and many others who wish to be just outside the Holland Village area, an expatriate-infested enclave with a high density of Starbuck-ish coffee places and even higher density of restaurants offering cuisine from Mexican burritos to Indian curries. Holland Village, located just one kilometre north of Buona Vista and separating it from the prime Bukit Timah area. Rentals there start at $4,000 for a new condo but can be as little as $2,500 for a 10-yr-old unit. Despite its price tag, it remains a favourite with expatriates because of its slight bohemian appeal and high concentration of fellow expats. It is the one place in the country (besides pubs in Clarke Quay - Boat Quay in the evenings) where locals might find themselves equaled in numbers by expats.
Ang Mo Kio, Toa Payoh, Woodlands & Yishun
To the north of the country are several other towns where comfortable housing is available at decent rates. Housing in Ang Mo Kio, Toa Payoh, and Yishun, though far from the city centre (far in Singapore means anything more than a 10-min drive), is easily accessible by the mass rapid transit. The Orchard Road station is all but a quick train ride away from these residential townships, all sitting on the north-south lines, and all well-served by their own train stations. Rental for a condo here go for $1,500 and up. Woodlands, the northernmost town is now a favourite among American expatriates who wish to reside near the Singapore American School, the largest international school in the country. Woodlands is also situated near the Malaysia border and residents in the area frequently commute across the border to purchase commodities and household items at cheaper prices. Rental here can be as low as $1,800 or even lower should you choose to rent a public housing flat (HDB flat).
Housing and Development Board (HDB)
The Housing and Development Board (HDB) was set up as a statutory board to build homes for the people. About 85% of the population live in HDB flats. And approximately 15% in private homes, including condominiums, walkups, landed houses and shophouses.
Renting a Housing and Development Board's (HDB) flat in Singapore is a lot cheaper but these public housing dwellings were built primarily for housing the local masses and do not offer amenities like swimming pools or tennis courts or gyms like condos do (although a sub-genre called HDB Executive Condos do have some facilities). These flats are referred to by the total number of rooms, that is, a 3-bdrm condo would be equivalent to a 5-room flat (add a living room and a dining room to the 3 bedrooms). While it is illegal to rent out the entire HDB flat (remember they are built to house the masses, not allow them to enjoy rental revenue), renting out parts of it is allowed. So many Singaporeans rent out the entire flat while keeping one room locked up. The idea here is owners of these HDB flats will claim that that one locked room is where they are staying, and therefore, they are not renting out the entire flat.
Should you choose to rent a HDB flat, you will find that the going rate starts from $800 for a 5-room flat in the outlying areas (eg Jurong, Pasir Ris) and about $1,100 for one closer to town. Downgrade to a 3-room (a puny 500 sq ft) or 4-room (800 sq ft), and you can find yourself paying as little as $700. But that is really scraping the bottom of the barrel.
What then should you do if the condos cost a tad too much and the HDB sounds too basic and primitive? You can always forego a new condo and go for an older one, which means anything built more than 8 years ago. For the same 3-bdrm condo, you can get one that is about 30% cheaper than the new ones. Go for an even older one, something over 20 years old, and you can find yourself paying close to half what the new ones command. Or if you have a larger household, go for houses.
Housing Grant from HDB
Applicants who have bought their flats directly from HDB or who have used the Housing Grant for the purchase of resale flats from the resale market will be treated as having enjoyed a housing subsidy.
To qualify for the Housing Grant, applicants must be first time applicants and meet the eligibility similar to those for the purchase of a flat directly from HDB.
If you bought your flat from HDB or from the resale market under the Housing Grant Scheme, you can only dispose off your flat after you have owned and occupied it for a period of five years.
If you bought a HDB resale unit without applying for the Housing Grant, you can only sell it after occupation for two and a half years.
A Singapore citizen may only apply to buy a second flat directly from HDB after 10 years from the purchase of the first flat. The sale of this first flat is subject to a graded resale levy imposed by HDB. This resale levy is not applicable to owners of resale flats who did not get the Housing Grant.
As an HDB flat-owner, if you work overseas, you may apply to sublet your flat for the period when you are away.
The period of subletting is not counted as part of the requisite occupation period or time bar to determine your eligibility to:
Resell the flat in the open market;
Invest in a private residential property;
Apply for another flat direct from HDB.
Home Ownership Scheme
A returning Singapore citizen or Permanent Resident can buy an HDB flat under the HDB Home Ownership Scheme.
The scheme allows you to use your CPF savings for the 10% downpayment and monthly repayment of the mortgage loan.
The income ceiling is S$8,000 for a nuclear family and S$12,000 for an extended family. Before a mortgage loan is granted, the buyer will be subjected to a credit assessment and all available CPF savings in the Ordinary Account has to be utilized.
This mortgage loan can be repaid over a period computed on 65 years minus the age of the youngest joint-applicant. It may vary from one year to a maximum of 30 years.
For more information, please contact: Housing and Development BoardHDB HUB480 Lorong 6 Toa Payoh, Singapore 310460Tel : (65) 6490 1111 Tel : (65) 6397 2477 Email: hdbmailbox@hdb.gov.sg
Landed Houses
Houses in Singapore command a disproportionately lower rental so one may pay less for a huge house than for a medium sized condo in the same area. Rentals for houses are more dependant upon the condition of these houses rather than their location. The reasons for these are (a) there are very few new houses for rent - it is the Singaporean dream to live in their own house rather than renting it out. (b) most expats prefer condos as these often come with amenities for their families.
If you prefer more space and privacy, and enjoy the garden and the outdoors, you may choose to live in a house. You will probably have a car and are more mobile. Going further out and away from the central prime districts, one can pay about $4,000 for a 2,500 sq ft 15-yr-old terrace house (like a town house) outside the city when that same rent can only get you a medium sized condo in the same area. It would be almost impossible to locate a decent abode in the central areas for this same budget
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