We’re moving: Shrinking allowances drive expats to outskirts

Fewer funds mean farther houses.

Tight rental budgets due to shrinking housing stipends are shooing expatriates to the city’s outskirts. For penny-pinching immigrants, houses outside the city’s core region will have to do.

According to URA and Savills, “These housing options likely fit better to their current budgets, yet still remain conveniently accessible from the city area.”

Leases for residential properties in the Rest of Central Region (RCR) area surged to 37% in the first quarter of 2014, which is equivalent to more than 4,800 leases.

RCR figures outstripped leases in the Core Central Region (CCR) which slid to 32.4% from 33.5% in 2013, while properties Outside of Central Region (OCR) bagged 30.6% of total rental transactions.

Here’s more from the report: 

According to the Urban Redevelopment Authority (URA), a total of 13,077 leases of private residential homes, excluding executive condominiums, were inked island-wide in the first three months of 2014. This translates to an annual growth of 4.0%.

The yearly proportion of rental transactions in the city fringe areas, or the RCR, has steadily increased and surpassed those in the CCR and OCR since 2012.

Tenants these days are also offered a wider variety of locations in the RCR to pick from, as there is an increasing number of newly completed developments.