Property Agents Should be Happy As More HDB Rental Transactions Occurred Due to M’sia Workers Coming Back to Work

The border restrictions in both Singapore and Malaysia have greatly affected Malaysians working here.

According to SCMP, a total of 300,000 Malaysians used to enter Singapore for work or school on a daily basis before the pandemic.

Then, all of a sudden, they were told to either live in Singapore for an extended period of time or head back to Malaysia and risk losing their jobs.

Months later, the Covid-19 situation in both countries improved, and some Malaysians were allowed to enter for business, official, and work purposes.

It turns out that this was not only good news for those workers, but property agents in Singapore too.

Surge in HDB Rental Transactions

Property agents are reaping the rewards of Singapore’s border reopening, as the number of rental transactions spiked in September.

According to data from real estate portal SRX Property, August marked the lowest point in the property rental market in 12 months.

In August, only 1,076 HDB units were rented out.

September saw a 49.7% surge in HDB rental volume, as an estimated 1,611 units were leased.

Rental volumes for condominiums also increased by 49.1% in September. An estimated 4,252 units were rented in September, up from 2,852 units in August.

Overall HDB rents went up by 0.4% from August, while condo and private apartment rents rose by 0.2%, according to The Straits Times.

Due to Malaysian Workers Coming Back to Work

This jump in rental volume is likely due to an influx of Malaysian employees returning to Singapore for work.

On 17 Aug, Singapore partially reopened its border with Malaysia for essential travel under two schemes:

• the reciprocal green lane (RGL)
• the periodic commuting arrangement (PCA)

The RGL allows short-term travel for up to 14 days for essential business or official purposes.

Conversely, the PCA allows residents of both countries who hold long-term immigration passes for business and work purposes in the other country to enter that country for work.

In short, both schemes allow Malaysians to come to Singapore only for business, official, and work purposes.

Now that they are permitted to enter Singapore, many of them are looking to rent flats or rooms near industrial estates like Woodlands, Choa Chu Kang, and Sembawang.

ST reported that these workers want shorter leases of six months (most probably because daily commute between JB and Singapore might be available after six months), but most landlords look for a minimum one-year lease.

Nonetheless, demand for flats in those areas is high, and can be snapped up within a day.

Property agents must be like:

Overall Rental Volume Still Down

The overall rental volume, however, is still down compared to last year.

HDB leasings decreased by 20.7% compared to September 2019, while the rental volume for condos and private apartments are 8% lower.

This could be due to a significant decline in the number of foreign students entering the country, as well as foreign workers who’ve been retrenched due to Covid-19.

This is unlikely to change soon, unless border restrictions ease in the near future.

When that happens, both property agents and travel lovers will rejoice hand in hand.