Upcoming GLS sites Upp Thomson Rd, Tengah EC, and Zion Rd will incorporate a new class of ‘long-stay serviced apartments

SingaporeTo meet the diverse housing preferences of Singaporeans, especially those of increasing renters, the Government will introduce a new class of serviced apartments. Set to launch next month are two Government Land Sales (GLS) sites – one in Upper Thomson Road and the other at Zion Road – which are expected to yield approximately 535 units of this new housing option.

Minister for National Development, Desmond Lee, announced this pilot at Real Estate Developers’ Association of Singapore’s (Redas) 64th Anniversary Dinner on Nov 29, noting that while Singaporeans generally aspire to own their own home, “some have shared with us that they are open to renting.” Potential tenants include those waiting to collect the keys to their new homes, or those waiting for renovations to be completed, those moving to Singapore for work or study, and others.

The new class of serviced apartments will offer a temporary option with a three-month minimum stay requirement, in line with the minimum stay requirement of private properties. This aims to give potential tenants – both Singaporeans and foreigners – more competitive rates compared to those offered by serviced apartments today.

In setting aside a portion of the Gross Floor Area (GFA) at these upcoming GLS sites for the long-stay serviced apartments, the government could provide an alternative rental option to those waiting for the completion of their new home. According to URA, the new apartments cannot be strata subdivided for sale, making it possible for developers to hold onto the units for recurring rental revenue.

The amenities nearby such as shopping malls, supermarkets, restaurants, schools, and transportation are accessible to them. The facilities such as gym, tennis court, and swimming pool provide them with a recreational option. The modern infrastructure provides excellent safety and security for the Tengah EC owners. The integrated living ecosystem enabled by innovative technology ensures its residents can enjoy their living space without any difficulty. In addition, the area provides an excellent environment for growing families and business professionals. All these qualities have made Tengah EC one of the most sought-after executive condominiums in Singapore.

Upper Thomson Road GLS site is next to Springleaf MRT station on the Thomson-East Coast Line (TEL) while the Zion Road GLS site will be connected to Havelock MRT station on the TEL. This could suit those needing more convenient travelling options while staying temporarily.

Mark Yip, CEO of Huttons Asia, shares that today serviced apartments cater mainly to affluent and tourists and professionals working in Singapore, and their costs are relatively exorbitant. This could be softened with the introduction of the new class of serviced apartments as not everyone could afford those.

Eddie Lim, chief agency officer at PropNex Realty, believes this could give people more choices in rental options, which has been rather limited in the current market dynamics favouring landlords.

Koon Wai Leong, general manager of Hoi Hup Realty, sees the potential of the government releasing more details soon on the pilot, such as the percentage of GFA allocated to serviced apartments, unit size restrictions, and how the ABSD will factor into this portion of the projects’ GFA.

To meet the housing preferences of Singaporeans, especially those looking to rent, the government has announced a new class of serviced apartments to be located at two upcoming GLS sites – one in Upper Thomson Road and the other at Zion Road – which could yield approximately 535 units of these new housing option. The three-month minimum stay requirement of this housing option is in line with the minimum stay requirement of private properties, while the convenient Tengah EC location could suit those seeking more convenient travelling options. For those looking for an alternative rental option that offers competitive rates, keep an eye out for more details from the government on the tender conditions of this Tengah EC pilot.