Date of report: December 18, 1998
From: Anne Brocklebank
To: Mr Tan by email.

This report is written to an absentee Owner in the USA as regards the industry situation and a recommendation on how to attract Tenants in a Buyer's (Tenant's) market and will be published for the benefit of expat surfers who email to Asia USA for information on bungalows in a Caucasian expat enclave area. A list of rental bungalows is included. It takes some time to prepare this report as it has been a busy day. Emailed at 2.20 pm. Sorry for delay.

Having problems renting your condo? Why not pay $13.50 to advertise in www.asiahomes.com.

Expats relocating to Singapore use this website frequently as a starting point (see "About Asiahomes Internet" as it is full of information and photographs on Singapore rental housing. You have 90 days and 24-hour exposure of your property direct to other prospects including realtors. Email drsing@asiahomes.com

D11 BUNGALOWS

The months of December and January are not busy months for rental realtors because most Caucasians are back home on holiday, will wait till late January 1999 before going house-hunting or will have found accommodation last month if the Landlord can wait for 2 or 3 months. Caucasian expats usually set aside 2 or 3 months to check out houses for lease and there are a few Landlords who don't mind waiting 2 months for commencement of lease unlike 2 years ago.

District 11 is an extensive area stretching from Newton to Upper Bukit Timah Road, an expat enclave area as the international schools, except the new American School, are within 15-30 minute bus ride.

Most bungalows do not have pool. A handful of small developments called cluster housing of 4 or 8 bungalows in a gated community share a pool. The bungalows with inground swimming pools demand higher rent although above-ground pool which suits children less than 5 years old rent do attract Caucasians.

Location nearer to Orchard Road and downtown, such as the Newton bungalows and the Trevose areas are in great demand if they have decent-sized garden and pool as prospective Tenants back home in the USA usually have been used to half an acre or more of land and have to make do with smaller plots in Singapore at much higher rents.

What should an absentee Owner do to ensure that his bungalow get rented out fast?

In view of the drastic cut-back on housing allowances, many senior-management expats now have rent budgets of $8,000 - $12,000. There are numerous bungalows available within this range. However, big condos in Orchard Road area rent are offering such rent and they have advantages of full condo facilities like nice pool, gym (many Caucasian wives want gym), tennis court and networking with other foreign children.

Just 2 years ago, a realtor given exclusive rights to a well located bungalow would be able to find a Tenant within 2 weeks as the thousands of brand new condos (see www.asiahomes.com SUBDIVISION LISTINGS) were not available.

Competition. At the rate of one new condo/housing being ready per month for the past 24 months, there is great competition from condos over 2500 sf - 4000 sf built-in areas and new houses like Holland Grove View, Holland Green's 53 brand new bungalows just released in December 1998 asking $12,000. Mera Gardens & Woodlands houses next to the American School are attractive since they are brand new. The brand new Greenwood semi-detached houses' interior finishes, University Park houses have high quality finishes. Some even have marble flooring in the bathrooms. This made many bungalows in District 11 with old worn out bathrooms, kitchens and no marble flooring unattractive. Some renovations must be done to the bathrooms and kitchen cabinets if the Owner wants to rent out fast.

Exclusive marketing agent and co-broking. Many exclusive agents can't perform for various reasons.

Owner Advertisements: Assuming they focus on your property and that it is in a great location and is attractive, the main reason will be that the rental realtors (who have the Tenants) usually contact the Owners direct. Many Owners do advertise direct (see District 11 listings of bungalows below captured in a multiple listing company subscribed to by professional realtors).

As supply is greater than demand, a good rental realtor should be able to get sufficient number of properties from the Owners who are only too happy to give the standard agency commission of one month's rent for a two-year lease. This means that the exclusive marketing agents have few calls for co-broking from his Straits Times advertisements. These are usually as a last-minute call to add up the numbers. In avoiding co-broking, the rental realtor does not need to split 50% of the commission with the Owner's Realtor.

Recommendation for absentee Owners: Asia USA Realty has recommended in several reports in www.asiahomes.com "TIPS FOR NEW LANDLORDS" that the preferred strategy will be as follows:

1. Pay the Managing Agent (Exclusive Agent) a Management Fee and reimburse for the newspaper advertisements. He/she has the keys and the advantage and will be paid full commission if he closes, whether by co-broking or otherwise.

2. The Managing Agent will state "full commission payable" in the advertisements and this clause is more frequently seen nowadays even in the Straits Times advertisements by the big realty firms indicating the fact that co-broking is no more in vogue with rental realtors.

3. Some agents resort to misrepresentation by inserting "Owner" in the Straits Times, the Internet advertisements and the multiple listing companies. It is an excellent ploy, as this attracts rental realtors like flies to the candle. However, such unethical agents do not get cooperation from the rental realtors in the long term and indicate a lack of integrity.

For the benefit of the Owner who asked for this report and expat surfers looking for D11 bungalows, the rent offered are in the list below: