Property Trends 2021
Real estate company Knight Frank helps people with their Singapore home search – including newly arrived expats from the UK, Europe, USA, Australia and other parts of the world. We asked the team for some updates on the market.
How has COVID-19 been affecting rentals in Singapore?
Clearly, a lot of expats left Singapore after lockdown ended. Some were retrenched, but many wanted to be with elderly parents back home or to have more opportunity to travel. As a result, we thought there would be a lot of property coming onto the market but, in reality, many overseas Singaporeans returned to the safety of Singapore and took back their properties; also, many people have been moving here from Hong Kong, and there are new expats coming in, too.
All of this means there’s a shortage of good inventory, and rental prices are holding or even increasing. Managing clients’ expectations is key now because so many people think they’ll find a bargain and can make lowball offers. But it simply isn’t the case.
After lockdown, did you see any changes in people’s property requirements?
Yes, many clients wanted to move out of their small apartments in the CBD and instead have an apartment with an extra bedroom as their home office as well as balconies. A lot of families are continuing to move to landed properties with gardens or to be by the beach, too, because they went stir-crazy during lockdown while cooped up in an apartment. We have never known Sentosa to be so full!
What areas are popular right now?
Staples like Bukit Timah and the East Coast are always sought-after due to their proximity to the Botanic Gardens and East Coast Park. Where expat families live is usually determined by the international schools their children attend. And, as mentioned earlier, we have seen Sentosa go from quiet to super popular because, with the travel restrictions in place, resort-style island living has enormous appeal.
What’s one tricky thing about renting in Singapore that’s worth nothing for newcomers?
Sometimes the “nickel-and-diming” over the return of security deposits can be arduous. We have a 100 percent success rate in getting security deposits paid back in full because we conduct a thorough check-in inventory and condition report with photos so there’s clear evidence of damage. We also ensure that clients do a professional clean, curtain clean and air-con clean before leaving so they don’t get deductions for this. We fight out clients’ corner.
Why do we need our own agent when looking for a home?
If you find a property directly through a landlord’s agent, you need to understand that that agent will always be protecting the landlord’s interests and taking their side in any disputes. It’s their duty to their client. Having your own agent means you have someone representing your interests, taking your side, sorting out issues. This is particularly important when it comes to ongoing repairs and maintenance and the return of your security deposit; having your own agent can make a big difference.
What do I pay for having my own agent?
Engaging an agent to represent you doesn’t cost you anything if your lease is for two years or more and your budget is a minimum of S$3,000. Therefore, it makes total sense to have your own representative in your corner.
What changes would you like to see in the property industry in Singapore?
We would like mandatory electrics and gas safety certificates issued before the start of every tenancy and renewal. Currently, no safety checks are conducted, which is an accident waiting to happen. We would like to see a security deposit scheme managed by a third party to ensure fair return – also, for landlords to pay a monthly management charge, as agents currently handle all the ongoing queries, repairs coordination and issues for free; this is timeconsuming and it means we work for free a lot.