Sunday, September 16, 2007

Expats find rental market insane in SIngapore!


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The insane couple? The Olivrys are from America, a country that had the worst housing bubble in its 300 yr history. You would think they are used to rising prices given they have been through this 'mammoth' housing bubble in America. But as I have written the worst housing bubble in America is just farce by Singapore standards. You don't see Singaporeans complaining too much surging property prices and rentals - we are coping well, we are hardened to price increases compared with these softie Americans. But to be fair to the Olivrys, their land lord has been a bit 'too Singaporean', he tripled the rent of their 1800 sq ft apartment from $2400 to $7200 in July sending the Olivrys to the streets hunting for a more affordable place.
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What expats see as insane, Singaporeans view as a money making opportunity. Even my neighbor send her children to be looked after by her mom so she can rent out part of her apartment to a South Korean couple.
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This is all very amazing because our official inflation rate is only up marginally in the 1st half of 2007 as measured by the CPI . However, if you look at our money supply as measured by M3 it as grown by a whopping 23% - M3 growth exceeding GDP growth is inflationary. Inflation likes to show up in things not measured by the CPI like my breakfast toast, mooncakes, expat rentals in private housing estates, taxi fares, movie tickets etc.
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All this is happening as the govt hikes GST to help the poor. The retirees who live on their savings and the lowest 30% of our society who saw their incomes falling will be assigned new challenges and the landlords (of whom the govt is the biggest) will be seeing their bank accounts fattened through almost no physical effort on their part. All this happening while we are having the highest income gap in our history is not a big issue. The Olivrys who probably make a high 5 figure monthly income and are having a hard time in Singapore, that is because they are softie Americans....our citizens are tougher they can cope with $1000 monthly paychecks as prices rise to the moon. While our ministers saw the need to hike their million$ pay by 30-40% to avoid a painful sacrifice ahead of price hikes, they are confident that those on public assistance can cope very well on $290 a month as prices escalate . ...it takes alot of courage for our leaders to have such confidence, they should be saluted for their leadership.

17 comments:

Anonymous said...

My salute to the PAP dogs and Singapore civil service:

A middle finger with clenched fist.

Anonymous said...

PAP's definition of business cost is peasants' salaries, only.

Anonymous said...

Wow, such strong words! Tsk tsk... yet when given a chance, the unhappy Singaporean is unable to express himself with his vote. I say you take Boxer from Animal Farm as your role model, and adopt the maxim, "I will work harder."

Sophie said...

u very funny. my views more sober. :-)

http://sophiesworld-sophiesworld.blogspot.com/2007/09/spores-bubbly-property-market-part-3.html

Anonymous said...

The govt is doing a excellent, just look at the policies that are being set to help the poor and eldery.

I am sure they are getting my vote in the next elections.

Anonymous said...

We were wondering why the minitoots had to fatten themselves with such enormous pay raises, on the back of their already ridiculously high salaries amidst NON-performance... well well well, it seems they had the "foresight" to buffer themselves against the inflation brought on by excessive $$$ supply.

now, who daresays the minitoots can think or plan?

Anonymous said...

Expats do have a choice of renting HDB n live among the peasants, not necessarily Bt Timah. They really do have a choice, not happy, kindly buzz off.

Ex-Expasants said...

maybe the pap wants to pyscho the expats to mix with the poor peasants mah....we should call this the expasants or peapats.

if the pappy doggie's not forcing DEBTS AND LIABILITIES down your throat, do you think they can control you and by extension the society as a whole?

young-pap said...

Anon of 11:46 am,
Nope, they can't stay in HDB flat, not if they want to be free from 24 hours surveillanwce.

Anonymous said...

I'm appalled at the Govt's lack of action in this instance. Why can't the govt just offer grants to subsidise Expat's expenses, including rental. It's the right thing to do!

Capt_Canuck said...

I can really relate to the situation of the expats. Am trying to find a place to rent with my wife for between $800-$1100/month. Almost an impossibility. Though not going to say anything about the rental price as free economy/invisible hand of supply and demand and all, just find it really hard to get around the "no chinese" or "sorry to India or China" that is being put up, and how the people want us to come and view til they learn I am caucasian and the offer is taken back.

Anonymous said...

to captain_cannot,

sorry, hor, you definitely don't belong to the same league as the angmoh portrayed in our venerable states' times.

your budget of $800 to $1100 is laughably pathetic. that should get you a 3- or 4-room hdh flat right in the middle of peasnts' heartland. pls don't come here and dilute the pool of genuine "foreign talents"... lolololololol

Laura Olivry said...

Maybe Mrs. Olivry can have a word? Thanks. First of all, my husband is not a "softie American" but an EU citizen. Second, no, I have not experienced the "housing bubble" in the US as I have lived in Asia for 20 years. Third, our main point of contention -- quite missed by the journalist -- was NOT the rise in rents (although disappointing) but the WAY IN WHICH WE WERE TREATED. Landlords shaking our hands telling us we "got the place," taking our letters of intent and checks only to reneg hours later. I guess this "softie" still likes business conducted in a relatively civilized and ethical manner. Anyway, no worries -- we are leaving this hot, boring, oppressive, censored, and now over-priced city and moving on to a much nicer place. Cheers, Laura Olivry

Anonymous said...

sigh. singapore is for the pits. its experiencing what i think is a nascent form of social stratification. where the elite rule and the country has double standards. exploiting the majority of singaporeans. tsk. so much for their bull crap. pay-rise for fuck if they din do their job properly. if they really did their job, why are they afraid of performance-related wage systems? so much for their hypocripsy. i think that they really think that they can pull of this scam. like some massive david copperfield illusion or smth. nvm. although i must agree with some of their policies. like walter woon statements abt foreign journalist and shit. they are seriously more screwed up than we think. so i prefer the mass media in sg to stay whr they are. but. wtf some of their policies are fucked up. increase erp but reduce coe? but kind of fucked up policy is tt? surely there is smth wrong with it man.

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