| Singapore Rental Market |
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The luxury end of the Singapore rental market is driven strongly by demand from professionals, including expatriates living in Singapore. While vacancy rates have been low and construction has slowed, demand within the Singapore rental market will be adversely affected by the global financial crisis and slowing economy, resulting in lower rental costs. Following are points related to the Singapore rental market and services offered by Healy Consultants: | |||||
1.
| According to the Global Property Guide, the Singapore rental market favours landlords. Positive aspects of the Singapore rental market for investors include: |
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i) |
There are no laws governing the control of rent. This was abolished in 2001 so prices within the Singapore rental market are open to negotiations between landlord and tenant. |
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ii) |
It is difficult for tenants to break a lease, unless there is a clause in the contract between landlord and tenant. This usually requires fulfillment of the lease or finding a replacement tenant, agreement from landlord is required. |
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iii) |
Tenants pay rent in advance. |
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iv) |
Tenants pay one month security deposit for every year of the lease. This is returned at end of lease dependent on deductions for required repairs. |
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v) |
Leases in the Singapore rental market are usually one to two years, with most agents pushing for the longer term leases. Upon renewal the rent will be based on the current market prices. |
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vi) |
Subleasing without permission from the landlord is illegal in the Singapore rental market. |
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2.
| Property agent CB Richard Ellis believe the office sector of the Singapore rental market witness an increase in leasing activities in 2010. |
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3.
| The Urban Redevelopment Authorities (URA) commercial property rental index shows slight decline in prices within both office and retail sectors of the Singapore rental market during the third quarter of 2008. |
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4.
| The worsening economic environment has led to other analysts lowering their forecasts for the Singapore rental market. Credit Suisse believe demand for Singapore offices is likely to fall to recession-level lows during 2009 and 2010, resulting in an excessive supply of office space. |
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5.
| Healy Consultants assists investors to manage the process of finding tenants for newly acquired residential and commercial property. This process includes i) appointing a reliable agent, ii) determining the optimal rental for the property, iii) interviewing potential tenants and supervising negotiation of contracts iv) arranging necessary requirements for collection of rental payments v) efficient resolution of tenant issues. |
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| Contact Us | |||||
For further information on Singapore rental market, please call our Singapore office at (+65) 67350120 or contact email@healyconsultants.com
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