Her rent is raised by 52 percent
TENANTS can afford to be picky these days as the property market turns sluggish, and recession fears abound.
But not if the lease is in Chip Bee Gardens near Holland Village, with its popular black and white inter-terrace houses.
Instead of cutting rents, the landlord – JTC Corporation – has raised them. And for some tenants, by as much as 90 per cent.
JTC’s justification is that the tenancy agreements had to be revised to reflect rising rental market in the last two years.
But some of the tenants are angry with what they see as an ill-timed increase, given the economic climate. About 40 tenants have two-year leases which will end in the next three months.
JTC’s 349 state-owned three-bedroom terraces have an area of 1,356 sq ft each.
After the hike, the rents range from $3,400 to $3,900 a month, according to the location and condition of the units.
One tenant, visual artist Ketna Patel, 39, saw her rent jump by more than 50 per cent this month.
The Uganda-born Singapore PR, who is married to a musician, has been living in the estate for 13 years.
The couple have been renting two terrace units alongside each other, paying $2,500 each for them. One is their home, while the other functions as a studio.
They spent $50,000 to renovate the two units four years ago.
The couple said they received a letter from JTC about two weeks ago, saying the rent would go up to $3,800 each for the two units.
Said Ms Patel: ‘That is unreasonable in this market. We can’t afford it and, with the new rates, we definitely can’t afford to rent here any more.’
The couple have until the end of this month to decide whether to stay put and pay the higher rent, or move out.
They are considering leaving the country altogether if they can’t find cheaper accommodation in the area.
Ms Patel said the rent was $2,500 when they moved into the estate in 1995. At that time, they were renting only one unit.
Though the rent was revised whenever their two-year lease expired, they had never paid more than $2,500.
Ms Patel also felt it was high-handed of the landlord to give them such a short notice period and no room to negotiate.
Physiotherapist Surendra Ratnam, 38, said the rent for his family home has increased 90 per cent – from $2,000 to $3,800.
His 68-year-old mother has been renting the same unit in the estate since 1991. The family paid $1,600 in rent back then.
Mr Ratnam, who works in India, flies back to Singapore every few months.
He said: ‘Naturally, my mother is very upset about the whole thing. She has been here for such a long time.
‘She has always paid her rent on time and has even done up the place. JTC has not been flexible at all.’
He said they were informed about the increase only two weeks ago and they have to move out by the end of the month.
This short notice does not give them much time to consider other options.
Added Mr Ratnam: ‘We’re angry at the manner that this has been dealt with. They (JTC) are short-sighted because they don’t see that this will mean an exodus of artists.’
He said his mother has been offered a smaller loft unit in the area by JTC, at $2,800 a month.
They’re also looking to buy a five-room HDB flat in Toa Payoh.
The quirky neighbourhood attracts a motley mix of expatriates and locals setting up homes or studios there. They include painters, photographers, architects, actors. There are also some doctors.
Holland Village and the surrounding offbeat area was cited as one of Singapore’s little Bohemias by then Prime Minister Goh Chok Tong in his National Day Rally speech back in 2002.
Bohemian
But Ms Patel fears this bohemian aspect will be lost to the high rents as more artists leave.
‘Without Chip Bee Gardens, there’s no point for us to stay here,’ she said. ‘They (JTC) keep saying the increase is due to market forces.
‘But this is not just about money. That is so short-sighted. They (JTC) don’t understand the consequence that more artists will leave this community.’
When contacted, JTC explained that the estate is managed on a commercial basis and so the rental rates are determined based on market comparables.
Added a JTC spokesman: ‘In the last two years, real estate market rentals have moved up significantly as a result of the property boom and inflow of foreign talent.
‘So, Chip Bee Gardens’ rentals have also been adjusted in line with market movements.’
JTC said the market rent of the terraces there ranges from $3,500 to $4,000 per month, according to external valuers.
JTC had also received as many as 80 rental enquiries in the last two months, and had a list of potential tenants waiting to take up any vacant unit at the prevailing rent.
The estate is now at full occupancy. The spokesman said JTC would continue to monitor the market closely and adjust the rents, if necessary, to ensure that they are in line with market rates.
JTC: Rent is reasonable
ARE JTC’s rents pegged too high?
Mr Eric Cheng, executive director of HSR Property Group, said JTC’s asking rent of about $3,600 is reasonable.
For example, monthly rents for inter-terrace houses in the Holland Village area were about $4,500 last year.
They have dropped this year and are in the region of $3,200 to $3,800 now, depending on the unit’s condition.
He said: ‘Their (JTC’s) pricing is right. The property market may be weak, but don’t forget that there is still demand for those units.’
Mr Cheng advised the existing tenants to take the opportunity to secure the lease because they’ve enjoyed fairly low rent for the last two years.
If these tenants average their rent out over the four years, their rent per month will work out to about $3,000.
He said: ‘I don’t think some tenants leaving because of higher rents will affect the culture of the estate much, or the demographics.
‘There’s still demand for those houses. If a group of artists move, a different group will take over.’
Source : New Paper – 28 Nov 2008
