More expatriates are moving away from Singapore’s prime, central districts and towards suburban, heartland areas – while still opting for private housing within pre-existing expat communities, according to property agents and online portals that Insight spoke to.
They say the trend, anecdotally observed over the past decade, can be primarily attributed to reduced – if not entirely removed – expat benefits, the relocation of international schools and the impact of Covid-19.
Real estate consultancy Knight Frank associate executive sales director Ella Sherman recalls that big expat packages were the norm when she started out 14 years ago.
“Incoming expats had housing allowances that let them live in expensive condos and houses in prime districts. They also often used to receive club memberships through their companies – American Club, Tanglin Club – so they all wanted to live in the areas around Ardmore, Orchard and Bukit Timah, which came with very high rents,” she says. “But over time, there’s definitely been a huge shift in companies no longer giving out these club memberships, while also slashing housing allowances dramatically. They are now half or less (than) what they used to be.”
British national Francis (not his real name) says that when he first moved to Singapore in 2012, expats were getting “everything” – with accommodation, schooling and electricity bills all paid for by their employers. “Now, expat packages are gone and people come here more as a lifestyle choice, since the cost of living is so exorbitant compared to back home,” he says.
Ms Sherman, who specialises in expat housing, says the international schools have played a more important role in prompting her clients to move out into the heartland, where a Serangoon condominium might cost $5,000 a month to rent compared with $15,000 for an Ardmore property.
“If you’re a family, you have to reduce your rent to meet the international school fees which are hugely expensive. Many expats have three to four children, and I do come across clients who say by the time they pay these school fees and their rent, they’re not saving money,” she says.
Annual tuition fees for international schools in Singapore could go up to nearly $55,000, based on quick checks on the schools’ websites. In contrast, foreigners pay up to $21,000 to study at local schools (at the highest pre-university level).
It helps that the schools themselves are relocating around the island, with expats following suit to live within walking distance of institutions like the Singapore American School in Woodlands, Stamford American International School in Woodleigh, International French School in Ang Mo Kio, and the Canadian International School, which moved its Bukit Timah campus to Jurong West.
Ms Sherman says, however, that pandemic-induced retrenchments, pay cuts and rising school fees due to falling class sizes are forcing several of her Australian and American clients to leave Singapore. “The numbers no longer made it worthwhile being away from family and friends back home, so they repatriated,” she says.
PRIVATE LIFESTYLES
Within the heartland, public Housing Board (HDB) flats, with their amenities, accessibility and convenience, would also appear to be a good rental option for expats, says Dr Tan Tee Khoon, Singapore country manager of the PropertyGuru portal.
But Ms Sherman says her clients continue to insist on private housing, with just the odd acquaintance choosing to rent an HDB flat to save money. The biggest factor, she explains, is immediate access to a swimming pool – ostensibly a must-have for expats moving to tropical Asian countries.
She adds that the vast majority of expats express a preference for properties already occupied by other expat families.
“It’s not so much an issue of not wanting diversity, but more about their children going to the same international schools, and having someone to play with in the condo and sit with on the school bus,” she says. “The international school system is different from the local school system – there’s more emphasis on play time, games, sports, the arts, and being more creative and imaginative.
“So it helps when they’ve got like-minded families around, rather than (a local parent) whose child typically attends after-school academic enrichment classes and then practises playing the piano for two hours a day, rather than playing with friends and having swimming lessons together.”
Ms Sherman, a permanent resident, says it is also about expat camaraderie. “You’re away from your home country, overseas, having a new experience, on an adventure of sorts. Having all that in common with your neighbours, that’s a draw.”
She adds: “Occasionally, I get a family that says they don’t want to be in an expat area, because they are in Singapore for an authentic Asian experience. But these are rare.”
Of the 15 expats interviewed by Insight, only three had ever experienced staying in an HDB flat.
Tom, who works in the shipping industry on a Personalised Employment Pass, spent three of his 10 years in Singapore living in a rented flat in Punggol.
“I was perceived as the weird ‘ang moh’ living in the block,” he says, using the Hokkien term for red hair, which colloquially refers to Caucasians.
“Every time I opened my front door, I would see my neighbours opposite peering round the corner to see what I was up to, as if they were thinking, ‘What’s he doing here?’ ”
“Source:[More expats in Singapore moving to heartland as benefits shrink] © Singapore Press Holdings Limited. Permission required for reproduction”
