DOWNSIZING is one way of fighting soaring rents, but expatriate Diana Cloe and her husband moved downstairs instead, going from their 24th-floor condominium apartment to a similar-size unit on the fourth.
MS DIANA CLOE AND HER HUSBAND moved from their 24th-floor apartment to this unit on the fourth floor when rent was increased by 40 per cent. -- ST PHOTO: CAROLINE CHIAThe step down came after their landlord raised the rent for their 2,900 sq ft Anderson Road flat by 40 per cent in April.
They moved down 20 floors to a flat that costs $8,200 in monthly rent - 20 per cent higher than what they were forking out.
Expats who have been complaining about rising rent are feeling vindicated by a recent global survey.
The ECA International survey showed Singapore rising 10 places to rank as the ninth-most-costly Asian city for expats.
Private home rentals have jumped by 32.2 per cent since January, compared with 14.1 per cent for the whole of last year.
Ms Cloe’s American husband, a global development manager who did not want to be named, said: ‘The rents are crazy. My housing allowance was $7,000 but my company was gracious enough to up it.’
Mr Ervin Scully, head of corporate leasing at Knight Frank, said soaring rents have prompted many multinationals to increase expat pay by up to 30 per cent.
Indian expat Sonya Madeira said her boss increased the pay of all 13 employees by 10 per cent after a discussion on the rising cost of living.
Ms Madeira, associate director of Eastwest Public Relations, said the rent for her 1,600 sq ft Pasir Panjang flat doubled to over $3,000. ‘Prices are up but our salaries are not going up at the same pace, so it’s still a bit difficult to manage,’ she said.
Ms Madeira said her family might leave Singapore if rent hits $5,000.
The British and American chambers of commerce are concerned about the rise in rentals.
But Mr Terry O’Connor, president of the British chamber, said the Government’s recent ‘cooling measures’ such as axing the deferred payment scheme has helped redress the situation. But this may not be enough to retain some expats.
Brand consultant Simon Faure-Field, 37, was hit by the doubling of both his office and home rents.
His High Street office now costs $10,000 a month but he renewed the lease as alternative locations were equally expensive.
However, when the rent for his 1,400 sq ft Bukit Timah apartment doubled to $5,000, he moved to a similar-size apartment in Pasir Ris for $3,000.
He said: ‘I can live in Dubai for the same amount. But there, my company can charge up to thrice the price for our services.’
Top 10 The most expensive cities in Asia
1 Seoul
2 Tokyo
3 Yokohama
4 Kobe
5 Hong Kong
6 Taipei
7 Beijing
8 Shanghai
9 Singapore
10 Guangzhou
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