She's angry because property market is soft, yet...

[Spurman]

http://newpaper.asia1.com.sg/news/story/0,...,185089,00.html?

 

TENANTS can afford to be picky these days as the property market turns sluggish, and recession fears abound.

 

 

But not if the lease is in Chip Bee Gardens near Holland Village, with its popular black and white inter-terrace houses.

 

Instead of cutting rents, the landlord - JTC Corporation - has raised them. And for some tenants, by as much as 90 per cent.

 

JTC's justification is that the tenancy agreements had to be revised to reflect rising rental market in the last two years.

 

But some of the tenants are angry with what they see as an ill-timed increase, given the economic climate. About 40 tenants have two-year leases which will end in the next three months.

 

JTC's 349 state-owned three-bedroom terraces have an area of 1,356 sq ft each.

 

After the hike, the rents range from $3,400 to $3,900 a month, according to the location and condition of the units.

 

 

HIKE: Despite the economic gloom, the rents for these terrace units at Chip Bee Gardens have been increased this year. TNP PICTURES: KUA CHEE SIONG

One tenant, visual artist Ketna Patel, 39, saw her rent jump by more than 50 per cent this month.

 

The Uganda-born Singapore PR, who is married to a musician, has been living in the estate for 13 years.

 

The couple have been renting two terrace units alongside each other, paying $2,500 each for them. One is their home, while the other functions as a studio.

 

They spent $50,000 to renovate the two units four years ago.

 

The couple said they received a letter from JTC about two weeks ago, saying the rent would go up to $3,800 each for the two units.

 

Said Ms Patel: 'That is unreasonable in this market. We can't afford it and, with the new rates, we definitely can't afford to rent here any more.'

 

The couple have until the end of this month to decide whether to stay put and pay the higher rent, or move out.

 

They are considering leaving the country altogether if they can't find cheaper accommodation in the area.

 

Ms Patel said the rent was $2,500 when they moved into the estate in 1995. At that time, they were renting only one unit.

 

Though the rent was revised whenever their two-year lease expired, they had never paid more than $2,500.

 

Ms Patel also felt it was high-handed of the landlord to give them such a short notice period and no room to negotiate.

 

Physiotherapist Surendra Ratnam, 38, said the rent for his family home has increased 90 per cent - from $2,000 to $3,800.

 

His 68-year-old mother has been renting the same unit in the estate since 1991. The family paid $1,600 in rent back then.

 

Mr Ratnam, who works in India, flies back to Singapore every few months.

 

He said: 'Naturally, my mother is very upset about the whole thing. She has been here for such a long time.

 

'She has always paid her rent on time and has even done up the place. JTC has not been flexible at all.'

 

He said they were informed about the increase only two weeks ago and they have to move out by the end of the month.

 

This short notice does not give them much time to consider other options.

 

Added Mr Ratnam: 'We're angry at the manner that this has been dealt with. They (JTC) are short-sighted because they don't see that this will mean an exodus of artists.'

 

He said his mother has been offered a smaller loft unit in the area by JTC, at $2,800 a month.

 

They're also looking to buy a five-room HDB flat in Toa Payoh.

 

The quirky neighbourhood attracts a motley mix of expatriates and locals setting up homes or studios there. They include painters, photographers, architects, actors. There are also some doctors.

 

Holland Village and the surrounding offbeat area was cited as one of Singapore's little Bohemias by then Prime Minister Goh Chok Tong in his National Day Rally speech back in 2002.

 

Bohemian

 

But Ms Patel fears this bohemian aspect will be lost to the high rents as more artists leave.

 

'Without Chip Bee Gardens, there's no point for us to stay here,' she said. 'They (JTC) keep saying the increase is due to market forces.

 

'But this is not just about money. That is so short-sighted. They (JTC) don't understand the consequence that more artists will leave this community.'

 

When contacted, JTC explained that the estate is managed on a commercial basis and so the rental rates are determined based on market comparables.

 

Added a JTC spokesman: 'In the last two years, real estate market rentals have moved up significantly as a result of the property boom and inflow of foreign talent.

 

'So, Chip Bee Gardens' rentals have also been adjusted in line with market movements.'

 

JTC said the market rent of the terraces there ranges from $3,500 to $4,000 per month, according to external valuers.

 

JTC had also received as many as 80 rental enquiries in the last two months, and had a list of potential tenants waiting to take up any vacant unit at the prevailing rent.

 

The estate is now at full occupancy. The spokesman said JTC would continue to monitor the market closely and adjust the rents, if necessary, to ensure that they are in line with market rates.

 

 

 

--------------------------------------------------------------------------------

 

 

JTC: Rent is reasonable

 

ARE JTC's rents pegged too high?

 

Mr Eric Cheng, executive director of HSR Property Group, said JTC's asking rent of about $3,600 is reasonable.

 

For example, monthly rents for inter-terrace houses in the Holland Village area were about $4,500 last year.

 

They have dropped this year and are in the region of $3,200 to $3,800 now, depending on the unit's condition.

 

He said: 'Their (JTC's) pricing is right. The property market may be weak, but don't forget that there is still demand for those units.'

 

Mr Cheng advised the existing tenants to take the opportunity to secure the lease because they've enjoyed fairly low rent for the last two years.

 

If these tenants average their rent out over the four years, their rent per month will work out to about $3,000.

 

He said: 'I don't think some tenants leaving because of higher rents will affect the culture of the estate much, or the demographics.

 

'There's still demand for those houses. If a group of artists move, a different group will take over.'

[Shull]

again..greed rear it's ugly head..

 

but 3.9k for a terrace house IMO is considered cheap..

 

my parents rent out their 3+1 condo at Jurong for $2500p/m..

[Tanlee]

did not realise how cheap the rent is?

 

i am sure, if they move out, someone will still move in... demand and supply...

[Silver_blade]

While it's true that the rental is cheap.....timing and the amount to raise are important. If they had increased the rent at a reasonable rate over time (for the existing tenant. New tenant pay a new revised rate)....people will not complaint so much. Raising such huge amount at one go, especially in bad times, is really as good as telling the tenants to leave. Typically hand-handed way to deal with issues....just like the public transport co...and some others.

[Espire]

datz pretty cheap too..

 

a 4-room HDB flat in jurong rent for 2K-2.5K...

[Sabian]

That's something the tenants need to factor in when their rental lease is going to be up. Still expect to pay rent at prices 2 years ago? Living in la la land??

 

Cannot rent Chip Bee Gdns means must leave country? Time to wake up and do some cutback on expenses...like what everyone is doing.

[Sony]

I wonder what the outcome will be if it's not govt related landlord

[Modykoh]

or din realise how much the rental had increase over the pass years?

[Kelpie]

datz pretty cheap too..

 

a 4-room HDB flat in jurong rent for 2K-2.5K...

 

It is consider reasonable pricing. Just take it that they have been given discounted rental all this while, for some even 13 years. I mean if you want to live in a rental terrace in a choice location, be prepared to pay more. Govt not that naive.

 

Regards,

[Chrispie]

This is singapore inc. and JTC is stat board (right?) leh..

 

Money of coz comes first.. who cares a damn about artists here esp in Singapore.. Our so called cultural is typically 'purchased', 'superficial' and for show type.

 

If the tenants are owners of MNC who threaten to shift their operations from singapore, see if JTC will barge.

[Spas]

Recent news about property price reductions are more of a macro-level analysis.

 

But in the end it's still about demand and supply. Singapore is not a communist country. If the rent's too high, lowered demand will suppress the price eventually. Fact of the matter is many will still pay the increased rents. Though it's a begrudging acceptance, it's still considered "demand" in an economics stand.

 

So, really, I'm not placing blame on anyone. But I'm questioning the need to even kpkb about it in a forum letter in print. What does she expect? The government to step in and tell tenants they cannot increase rents?

 

Maybe it's greed on the landlord's part? But if any landlord knew that there's more to be had from richer folks willing to pay, would anyone blame them for raising rates, esp in the current economic climate? Besides, I really feel the rates charged are pretty okay leh.

 

I'd do it. It's not like I'm taking money from the poor. I'd take these folks' money and redistribute it even.

 

Jeez. Just move out, stop paying them the exorbitant rents and hope no one else moves in. Let economics do the dirty work. I have a feeling after the complaints, she'll still capitulate and pay to stay. Cos she knows deep down inside that there'll be others eager to take her place.

 

Pretty sure she's thinks she and her family's too blue-blooded to live anywhere of "lower" value.

Edited November 30, 2008 by Spas

[Throttle2]

clear case of demand supply forces.

tenants got nothing to debate about.

 

and since when as it not about the money in Singapore?........

[Boyboy]

i think i'd be pissed because they have been getting an unfairly good deal all this while

 

cannot afford, go rent some HDB from open market lah. or buy a resale HDB to stay until they want to move out from SGP lor

 

pple who wanna stay in landed in this little country and wanna complain rental too high, are like those pple driving ferrari and complaining abt petrol prices (hypothetical group/cases, so, ferrari owners here pls dun take offence )

 

if pple stay in HDB and complain the prices of the flats are too expensive, that is an entirely different story

[Genie47]

I believe the issue here is not the rent rate.

 

Seletar also experienced this. I know some people who are living in Chip Bee Gardens. They are pretty pissed that the rents went up so fast and they are given only two weeks notice. They are pretty much braced for the fact that the 3.5k rent is a reality.

 

In other words, they aren't treated like people. Rather like some money making cog. Way back in the Asian Financial Crisis, Premas who managed Chip Bee Gardens before the screwed JTC took over (for the stupid mega project One North), reduced rents by 10%.

 

From the statement above, JTC wants a knee jerk reaction for these tenants to move out so that bigger cash cows who want these units to move in.

 

Evil. Purely evil.

[Genie47]

Don't believe the press. Its not that they cannot afford the rent at Chip Bee Gardens. The article is written with some nice propaganda cosmetics. People are complaining because they are given 2 weeks and treated like cogs in a money making machine. It is designed to produce the reaction you are giving in your post. People move out so that bigger cash cows waiting for these units to move in.

 

Its all about JTC's money.

Edited December 2, 2008 by Genie47

[Boyboy]

and get the public to wow at why they are complaining. wa lao i kena snook yet again

 

but seriously, can't run away from the fact that the rental rates were really good before it was increased

 

but the thing is, JTC wants them to move out, but if the rentals are still at market rate thereabouts, the tenants just suck it up what... short notice doesn't really do much to force pple to move out, unless all along they can't really afford to pay the market rate anyway.

 

it's like malaysia raising the petrol rates suddenly. different motive, but pple have been enjoying a cheap lunch all these years

Edited December 2, 2008 by Boyboy

[Genie47]

The rental rates are actually good. The nice brick and white colonial naval officers houses at Sembawang are owned by Pidemco Land and you can rent them for a cool 4k. Not bad for such a big house.

 

Well, it doesn't force many out but you will indeed be mad for being treated like a nobody.

[Metalslug]

again..greed rear it's ugly head..

 

but 3.9k for a terrace house IMO is considered cheap..

 

my parents rent out their 3+1 condo at Jurong for $2500p/m..

 

indeed, its very very cheap there to rent at the rate. its a terrace.

 

ask them go buy the 3 room hdb flat, can be up at $300+k i checked.

 

5 room, its $600k plus