Want To Rent This? Make A Bid For It - Singapore's Online Community

**sgelite** · 09-12-2007, 10:26 PM

RENTERS who have long hankered after that state-owned black-and-white colonial bungalow but are put off by the long waiting list can now bid for their dream home.
State landlord Singapore Land Authority (SLA) said it is opening up its properties for bidding to make their allocation more transparent.

Currently, tenants check SLA's portal www.spio.sla.gov.sg for information on available properties and then register their interest with SLA-appointed agents.

There is usually a long waiting list for these properties as demand is high. State properties can be 5 to 50 per cent cheaper than properties in the private market.

Renters have said that getting one is like winning the lottery - a tenant is selected either on a first-come, first-served basis or through a balloting exercise when a property is released.

Under the new scheme, anyone interested in these properties will be invited to view them during open houses. They then have up to one week to submit a private bid to the SLA. Bidding will close the following Friday and results will be announced the same day.

The new system will allow these buildings to be secured within a week or so of their being made available.

All in, SLA has 2,360 units available for rent and the occupancy rate is 91 per cent. However, not all of them will come under the bidding scheme.

An SLA spokesman said the new method 'encourages a fairer allocation process'. The bidding system also allows market forces to decide the value of the properties, ensuring a 'more accurate market value'.

At least 36 houses in popular locations - ranging from terraced and semi-detached houses to bungalows - will be open for bidding in the first half of next year.

Mr Kevin Barrios, 29, a postgraduate student from the United States due to start work in Singapore, expressed concern that the new procedure will drive up rents. He pays $700 for a one-bedroom apartment in the Portsdown Road area.

But Mr Eric Cheng, executive director of property agency HSR Property Group, said the bidding system is fairer.

He said many of his clients faced months, or even years, of waiting for such properties to become available.

'If someone really needs a house and is willing to pay for it, it's fair that he should get it,' said Mr Cheng.

SLA held a pilot bidding exercise for five of its properties last month and Belgian pilot Bernard Latierre was one of the successful bidders.

The price he paid - $6,550 a month for a semi-detached house in Seletar with a land area of 738 sq m - is reasonable, he said.

He had waited more than eight months for it. 'It's near my children's school, has lush greenery and lovely architecture. We wouldn't have got to live here if not for this new bidding system,' he said.

SLA said properties that have a two-year tenure and are in popular locations will be selected for bidding. Wherever possible, SLA will also allow existing tenants to renew their tenancies directly, provided the rental is adjusted to the market rate.

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List of estates and price range The SLA manages more than 2,300 residential state properties and has a 91 per cent occupancy rate.
Range of properties:

Flat/Apartment - 1,090 units; rental from $400-$3,800
Terrace - 340 units; rental from $600-$3,333
Semi-detached - 390 units; rental from $800-$11,500
Bungalow - 540 units; rental from $1,100-$23,222

Some of their locations:

Alexandra Park
Seletar Airbase
Telok Blangah
Scotts Road
Malcolm Park
Medway Park
Goodwood Hill
Bukit Timah
Woodleigh Park

Most of the black-and-white bungalows are in Sembawang, Alexandra Park and Adams Park.

The next list of properties available for rental will be on the SLA portal, www.spio.sla.gov.sg, from Dec 14.

They include a bungalow in Hyderabad Road, three two-room apartments in Clemenceau Avenue North and a two-storey bungalow in Maidstone Road.

**Miss QQ** · 10-12-2007, 07:15 AM

BID SYSTEM FOR RENTING STATE PROPERTY - NO LONGER 'DIRT CHEAP'?
http://newpaper.asia1.com.sg/news/st...50153,00.html?

	Quote:
	BID SYSTEM FOR RENTING STATE PROPERTY - NO LONGER 'DIRT CHEAP'? Some say scheme is fair, others brace themselves for higher rates By Cara van Miriah December 10, 2007 CALL it a property lottery. Be prepared to pay more if it's a hot property. Rents for some state-owned bungalows and apartments that used to be 'dirt cheap' are going up and up. A terrace house that used to fetch $1,700 a month may now fetch $3,000 due to strong demand. This is because the Singapore Land Authority (SLA) has introduced a new bidding system for its residential properties, which include bungalows, terraces, apartments and flats. Recently, a 2,637-sq-ft semi-detached house at Seletar Camp was leased out for $6,500 a month. You can rent one for less than $3,000 previously. A two-storey bungalow at King Albert Park with a floor area of 9,149 sq ft - valued at $18,500 monthly - was snapped up for $23,222. With the buoyant rental market, state-owned properties have seen rents shoot up under the new bidding scheme. RENT HIKE Landed properties with a monthly rental valuation of between $1,500 and $18,500 saw at least a 20 per cent hike. Previously, interested parties could contact SLA's managing agents, such as Premas United and DTZ Debenham Tie Leung, to rent a house under a fixed rate. They would be put on a waiting list and then selected through a balloting exercise or a first-come-first-served basis. The new system has seen two pilot biddings in October and November for SLA's five properties at Malcolm Road, Maida Vale, Mornington Crescent, Stevens Road and King Albert Park, which drew a total of 60 bids. Of course, you could pay less than the market rate, if there are only a few bidders. But don't expect to fork out just a few hundred dollars in rent. This is because SLA and its managing agents will exercise discretion when awarding such bids. So far, the new bidding system has drawn lukewarm responses. Mr Simon Ho, 34, a sales manager who's looking for a place to rent, said: 'With the old system, there is a fixed rate and you can rent a no-frills apartment at Rowell Road for less than $1,200. Now you will have pay a lot more because everyone can bid for it.' Mr Gerald Edwards, 45, an events organiser, whose family has lived in a 3,000-sq-ft terrace at Seletar Camp for eight years, said he will not be bidding when his two-year lease ends next year. The father of two is now paying $1,500 each month. During SLA's pilot bidding, a 1,668-sq-ft terrace house at Mornington Crescent at Seletar Camp went for $3,333 a month. Mr Edwards said: 'Previously, you can rent it for between $1,500 and $1,700. Now we will be competing with the rich and with companies who have the money to splurge. 'A family with an income of $6,000 can't afford to rent a state property these days. You need an upfront payment of over $10,000 once you sign the lease.' This amount includes a three-month deposit, along with a month's advance rent. This works out to $13,332 for the Mornington house. Another requirement: Your salary should be at least three times the monthly rental, so the tenant of the Mornington house needs to earn at least $10,000 a month. And those living in the bungalows with a five-figure monthly rent must earn close to a million a year. OTHER FACTORS But SLA said that they would consider other factors, like the bidder's other sources of income and savings - if their salary is less than three times the monthly rent. Ms Dolores Chiam, 38, a banker who lives in a rented apartment in Holland Village, thinks the bidding system is fair. She pays $3,800 rent a month for her two-bedroom apartment. She said: 'Now there are more choices for people like me who have never rented a state property. The rates are not unreasonable - they are going by demand and market conditions.' Most of the successful bidders were new tenants of SLA. The SLA's guide rent or valuation will be provided on each featured property at www.spio.sla.gov.sg SLA said the rates are based on the property's market value, like the condition of the unit, location and tenure. From its pilot, SLA noted that the winnings bids reflected the buoyant rental market and the strong interest in state properties. Mr Teo Cher Hian, SLA's deputy director of land lease private, told The New Paper on Sunday: 'With a wider property database, there are more choices for interested parties.' In January, another batch of properties will be up for bid. They include three apartments and two bungalows at Clemenceau Ave North and Hyderabad Road. The guide rents for them will be available from 14 Dec. Property agents said the Clemenceau apartments could fetch at least $2,000, while the bungalows could go as high as $20,000 a month. A SLA spokesman said: 'Even if the highest bid is below the guide rent, we will consider renting out the property to the bidder.' In total, there are 2,360 state properties for residential rental. This excludes those at Chip Bee Gardens, managed by JTC Corporation.