Singapore Housing Affordability "Troubles" in the News
Singapore rental prices have been in the news for some time, and the city is not new to the list of most expensive places for expats. Recently however, the news have been about local Singaporeans
For months now, since the end of 2021 when Singapore reopened its borders to foreigners post COVID-19, the country’s rental prices have made news. And it’s not surprising, since the city has been at the top of the global list of most expensive places for expats to live for many years. However two things recently changed which may spell trouble for the city-state:
First, companies started to complain about the cost of living for their expat employees based in Singapore
Second, more recently, local Singaporeans have also been affected
Here is how the tone has changed, in seven articles from major global and local news outlets.
Companies Are Finding Singapore Too Expensive…
Earlier this year in February, the Financial Times published an article entitled Singapore’s soaring expat rents undermine bid to oust Hong Kong as finance hub, in which they started to talk of how “higher rental prices could undermine Singapore’s attempts to become Asia’s dominant financial hub and attract the best talent” While the article was still similar to many other articles about the high cost of rent for expats here in Singapore, it was the first time that I saw an article about businesses leaving, or “flow back into other markets, especially smaller players” as the FT put it.
Then, in March, the Singapore Straits Times published an article (Rising rents hit European businesses in Singapore, cause anxiety among employees) on findings from the European Chamber of Commerce in Singapore (EuroCham). According to the EuroCham’s survey of 268 businesses, “70 per cent of businesses surveyed are facing increasing difficulty in maintaining operations in Singapore due to rising rental and operational costs.”
In April, the coverage of rents affecting businesses in Singapore picked up, locally and globally. Vulcan Post published The rising rental prices in S’pore is causing a potential expats exodus – how will this impact us? and CNBC Singapore rent prices are still sky-high. Long-time expats are having to consider drastic changes, both in line with previous articles, where expats who found rents too high were looking at other options, including leaving the country.
…and Locals Too!
Then, May came! On the same day, the Japan Times published Singapore’s soaring rents are becoming a political problem and Channel News Asia (CNA) published 'Way over budget': Why some young adults have given up on renting as prices rise. Both articles about single Singaporeans, below 35 year old (the age when singles are eligible for public housing here), being affected by the high rents. In the Japan Times article, the subjects of the story picked up and left the country, rather than move back home with their parents. In the CNA article, they moved back home with their families, unhappily.
The last article of the series came out early this week, from BBC News. In 'Doomsday': Singapore renters sound the alarm as prices surge, the BBC talks to local Singaporeans, who left their families for various reasons and are not happy with the current supply-demand situation resulting in them spending 60% more than two years ago. The BBC article ends with some hope from the upcoming supply "As the supply comes onstream, Singaporeans who are temporarily renting while waiting for the completion of their new homes will vacate their rental units, and help ease the rental market," HDB and URA adds.” and with some other vague statement on how "The government will continue to monitor the property market closely and adjust our policies as necessary." I guess there is light at the end of the tunnel for local Singaporeans.
Light at the End of the Tunnel?
What about expats? Rents have stabilized in the last couple of months. I do not think they will go down significantly, but I am also confident that they won’t continue to grow, as I wrote in March. And in the meantime, three days ago the president of the EuroCham (the same that in March published a survey of its members finding it “increasing difficulty in maintaining operations in Singapore due to rising rental and operational costs”) went on to say that “companies have never chosen Singapore because it was a cheap destination” So, i guess that settles it? Expats, suck it up, your employers were never here because this was a cheap place. :/