Rental of both HDB and private homes declined in 2014. We all know that the 7th round of cooling measures including TDSR was introduced to cool the rising property price. And some of us might even expect the rental to rise as more people cant get loan to buy their HDB or private home. WHO, then is the murderer of the goose? I attribute the decline to the basic of economy, that is demand and supply. The demand is weakened when MOM started to tighten control immigration policy in aim to encourage local companies to improve their productivity instead of relying on foreign labor. With fewer workers on work permit, the demand for rental flat naturally reduced. On supply side, many private condo units will TOP from this year onward and this will increase the competition for tenant in all areas. And for HDBs owner who bought private condo for investment, they will continue to stay in their HDB and rent out their condo to collect passive inchannelnewsasia/news/singapore/hdb-private-homes-rental/1588876.htmlcome or service their loan. Therefore it is obvious that the rental of both HDB and private home are declining due to weak demand and over supply. And looking at these 2 variables, the supply is more or less fixed as construction will proceed once project is launched. So, the only variable we can adjust is to increase the demand. And to increase demand quickly means that we need to open our door wide open to large number of foreign workers again. Is this something that Singaporeans can accept? I will leave the answer to this question to our politician.
Posted on: Wed, 14 Jan 2015 18:25:18 +0000
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