Are We There Yet?
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Rental hikes force 20% rise in expats' allowance
Mon, Aug 06, 2007
AsiaOne
Singapore's soaring property market and supply crunch has forced employers to raise the housing allowances for expatriates by as much as 20 per cent.
And this is causing concern as it could raise the cost of doing business here, and compromise Singapore's competitiveness.
According to a recent study by real estate consultancy Savills Singapore, average apartment rentals in the prime districts of 9, 10 and 11 have jumped by 36 per cent in a year.
Residential property prices in prime districts - where senior executives were most likely to live - rose 25.4 per cent last year.
Islandwide, home rentals climbed 10 per cent last year.
The American Chamber of Commerce's annual Asean Business Outlook poll found that 61 per cent of the 95 senior executives in Singapore surveyed were dissatisfied with housing prices, The Straits Times reported today.
The trend is not unique to Singapore, however. Housing rentals have also been rising in other global cities such as Hong Kong.
Recruitment consultants that The Straits Times spoke to said some companies are responding to the changes by adjusting the allowances that their expatriate employees get.
While the allowances vary across industries, estimates indicate that they have risen by about 20 per cent.
Some figures cited:
A chief executive officer who previously received between $10,000 and $20,000 in allowance per month would now get as much as $12,000 to $24,000 a month.
A vice-president or regional head who was entitled to between $8,000 and $15,000 a month would now get a new allowance of between $9,600 and $18,000.
With an increasing trend for companies to give their employees a lump-sum package that covers housing, it is mainly senior executives who still get a separate housing allowance.
Mr Charles Moore, managing partner at recruiting company Heidrick and Struggles, said: 'The revisions have been mostly market-led, rising from 15 per cent all the way to 100 per cent, according to the new rentals.'
But there are still companies which have yet to revise their allowances - although it looks like there is growing pressure on them to respond.
Feedback from the expatriate community has led the American Chamber of Commerce to consider urging companies to make changes. -
Lucky i brought my own house with subsidised by HDB loan...... so, let the rent rise lor..... good for me as a home owner.
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stock mkt just crashed. housing and rental mkt going to crash soon.
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hahaha.... no problem..... i still pay the same loan i have been paying 10yrs ago.Originally posted by crazy monkey:stock mkt just crashed. housing and rental mkt going to crash soon. -
1) Stock market hasnt crashed, this is just market correction.Originally posted by crazy monkey:stock mkt just crashed. housing and rental mkt going to crash soon.
2) Housing market and rental market will definitely "crash", but the big question is how soon is soon, and drop from how high to how low. -
Eh, stock market where got CRASH ? Dun scare the nation leh. National day leh.Originally posted by Gazelle:1) Stock market hasnt crashed, this is just market correction.
2) Housing market and rental market will definitely "crash", but the big question is how soon is soon, and drop from how high to how low.
Must tell us good news mah. like dat one you. so bad one. -
Sometimes UP.... sometimes DOWN.....
Nothing strange at all..... -
A chief executive officer who previously received between $10,000 and $20,000 in allowance per month would now get as much as $12,000 to $24,000 a month.
A vice-president or regional head who was entitled to between $8,000 and $15,000 a month would now get a new allowance of between $9,600 and $18,000.
well, depends who pay the allowance. for company like IBM, financial institution that peanuts! to all other companies , its time to employ more singaporeans CEO, VP or regional head to save these allowances.