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Singapore Government Raises Occupancy Limits
Feb 26, 2024
Singapore Government Raises Occupancy Limits Singapore
By   Internet
  • City News
  • Singapore Real Estate
  • Rental Pressure
  • Singapore Property Market
Abstract: The Singapore government recently announced a temporary measure to raise the occupancy limits for large public housing flats and private residences, aiming to alleviate residents' rental pressure.

Under this temporary measure, effective from January 22, 2024, up to 8 unrelated individuals will be allowed to reside in larger public housing flats and private residences to meet residents' rental needs.


Specifically, the Housing and Development Board (HDB) and Urban Redevelopment Authority (URA) will raise the occupancy limit from the current 6 unrelated individuals to 8, with the end date set for December 31, 2026. This applies to four-room flats or larger, as well as commercial properties with living space equivalent to or greater than that of a four-room flat, including large private residential properties of at least 90 square meters (969 square feet).


Singapore Government Raises Occupancy Limits

Internet


This measure is introduced to address the exceptionally tight market supply caused by the pandemic and strong rental demand. Singapore's Minister for National Development, Desmond Lee, stated that the increased limit will only apply to larger properties as they can "accommodate more residents with minimal impact on the surrounding community, maintaining a conducive living environment for a larger community."


To accommodate the additional residents allowed under the raised limit, owners need to submit applications to HDB or URA applicable to both public housing and private residential properties. Individuals and families are also required to adhere to the occupancy rate limits and avoid inconvenience to the public. Authorities stated they would closely monitor the situation and take action against any violations or serious disruptions, including revoking landlords' rental approvals.


Singapore Government Raises Occupancy Limits

Internet


Industry analysts have assessed the impact of this measure. Mr. Lee Sze Teck, Senior Director of Data Analytics, believes it is not expected to significantly impact rentals but may provide a "short-term solution" to stabilize the rental market until supply catches up. On the other hand, Ms. Christine Sun, Senior Vice President of OrangeTee and Tie, believes allowing more people to share rental units can help reduce living costs and potentially improve space utilization.


Additionally, HDB and URA stated that the government has increased the supply of public and private housing and plans to inject a significant amount of housing supply in the coming years to meet rental demand. They noted that in just 2023 alone, nearly 40,000 housing units across the public and private housing market are expected to be completed, marking the highest number of housing completions in the past five years. From 2023 to 2025, approximately 100,000 public and private housing units are expected to be completed.

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