Chief Editor March 30 2022

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Singapore rental market outlook 2022

From 1 April 2022, a fully vaccinated traveller will be allowed to make trips between Singapore and Malaysia without the need for quarantine or COVID-19 testing. The Government will do away with the pre-departure and on-arrival tests. 

Both Singapore and Malaysia Prime Ministers made the announcements on 24 March and it applies to all modes of transport including air and land.

Malaysians who work in Singapore will be able to travel back and forth without restrictions, so they may give up their rental units when their contract is due for renewal and the landlord does not budge in the asking rent. Most of the Malaysians work permit holders rent a 3-room or 4-room HDB flat together with their friends. Each HDB flat can accomodate up to six tenants with a minimum six months lease. Should some of them decide to return to Malaysia, it would not make economic sense for two persons to continue renting the entire flat. 

However, there is a minority group of Malaysians whom are used to living in Singapore and they do not want to spend a few hours everyday to travel across the border considering that the petrol price has went up substantially. 

ERA Realty associate division director Andy Chia JT predicts that HDB rental price will be curbed in the second half of this year as the border reopens. Whereas the private residential rental will remain strong as the expatriates return to Singapore. There will be a surge in employment pass (EP) holders as most companies will resume hiring.

ERA Realty's head of research and consultancy Nicholas Mak said that tenants will lose their security deposit if they terminate the contract prematurely. As per standard tenancy agreement, tenants are required to pay one month rent as a security deposit for one year lease.