Singapore BT : Resorts World househunt reaches into HDB heartland
Posted by Singapore Property Match on November 29, 2009
Business Times – 28 Nov 2009
Resorts World househunt reaches into HDB heartland
Property consultants say Sentosa IR is scouting for rental flats for some of
its foreign staff
By EMILYN YAP
VISITORS to the Universal Studios theme park in Resorts World at Sentosa
(RWS) will soon be able to live out adventures seen in various movies. There
will be zones based on films such as Madagascar, Shrek and Jurassic Park, to
bring thrill-seekers to a make-believe world far away from home.
For some employees at RWS, being away from home will also be a new
adventure. The integrated resort will be hiring a considerable number of
foreigners, and it is said to be searching for hundreds of HDB flats to help
them settle in. C&H Realty managing director Albert Lu said that RWS is
looking for HDB flats to rent, and approached his firm a few months ago to
find out about the rental market. RWS did not share many details then, but
the number of flats is ‘in the hundreds’, he told BT.
Another property market insider who declined to be named also said that RWS
has been ‘aggressively looking for flats to rent’, and is probably in need
of ‘a few hundred’ units.
So far, there is no official statement on the number of foreigners that RWS
could hire. Overall, it will employ about 10,000 people when it opens next
year. RWS spokesman Robin Goh told BT that it remains committed in
recruiting Singaporeans and Singapore permanent residents.
A media report in June noted that RWS had hired 600 workers, of whom 80 per
cent are locals. Assuming that the local-foreign ratio stays constant, its
headcount from abroad could reach 2,000.
Going by HDB rules, one- or two-room flats can each be rented out to at most
four people; three-room flats to at most six people; and four-roomers or
bigger flats to at most nine people. Assuming that RWS hires 2,000
foreigners and all of them rent four-room flats, it would need to find at
least about 220 units.
Mr Goh said that RWS started looking for ‘suitable accommodation’ for
foreign staff early this year, with help from a ‘reputable service
provider’. He did not specify the types and number of housing involved.
‘To help reduce their stress and anxiety of relocating overseas, we assist
our foreign team members in addressing one of their basic needs -
accommodation,’ he said. ‘We make sure that they settle down comfortably as
well as enjoy working and living in Singapore.’ And it is important for RWS
to keep its employees happy because that could enhance their work
performance and in turn, visitors’ experience at the integrated resort, he
said.
Mr Goh added that RWS considered several factors in choosing accommodation,
including the place’s accessibility and proximity to amenities such as
convenience stores. ‘The locations we have chosen facilitate good
interaction between the local community and foreign talent,’ he added. BT
understands that units at Tiong Bahru and Toa Payoh have been found.
C&H Realty’s Mr Lu said that he believes that RWS would want flats in areas
near Sentosa, such as Telok Blangah. But he pointed out that the supply of
rental flats in such central locations is tight, and RWS might have to
broaden its search to estates near MRT stations.
Rents of HDB flats in the central region rose between the second and third
quarter of the year. For instance, the median sub-letting rent for a
four-room flat in the area increased from about $2,000 to $2,200.
HDB’s website shows that up to the third quarter of this year, the agency
has granted 11,235 sub-letting approvals. The bulk of these – 3,978 or 35
per cent – were for three-room flats. Another 3,593 approvals were for
four-room flats.
Also, looking across all towns and flat types, median sub-letting rents have
remained relatively steady from the first to third quarter.
Dennis Wee Group director Chris Koh observed that the HDB rental market is
‘more stabilised’ compared with the period when collective sales were rife
and many displaced residents were looking for lodging. His firm has seen
more rental enquiries direct from foreigners working with RWS.
Marina Bay Sands, the other integrated resort due to open next year, has not
engaged property agents to look for accommodation for its foreign staff.
‘Housing arrangements will take into account the needs of the prospective
foreign employees,’ said a spokeswoman. ‘At this time, Marina Bay Sands is
giving priority to attracting and selecting Singaporeans and permanent
residents for our job opportunities.’
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