MND had announced that they are in the process of drafting the quota of foreigner excluding Malaysian. The reason behind is to prevent certain nationality staying within the same area and not attempt to integrate into the local community. It has been reported that there is estate that is having 18% foreigner renting. Hence it is perceived as an unhealthy sign.

Whatever the reason maybe, it would definitively impact the renting market. It’s both a good and bad news; the bad news is that HDB owner likely to face the issue in subletting their units as the quota might have hit and the good news is that it would likely to push the tenant towards private property. However, the downside shall cause the spending on housing to go up making Singapore less attractive expats who have lower budget.

This is no doubt a good measure by the government, after all, HDB is for the mass market and own stay. Having the intention of using it making a fortune should be the last time in mind. Our government now really mean business in regulating HDB. It looks like HDB is going back to basic, a house for every Singaporean.

But is this sending an unfriendly message to the foreigner working in Singapore renting HDB now?

Given the likelihood that the unit can’t be rented out in future, the resale market might take another bigger hit. This is especially for larger units like 5 rooms and EM/EA that has 4 bedrooms. There is landlord who cleverly partitions the unit so well that they can maximise the spaces and rent out all the rooms.

I would foresee that the room rental rate will go down and the tenant will likely to migrate to private properties that have less restriction. However, this is only migrating an issue from one real estate to another which isn’t under stricter regulation. Can particular nationality still gather together within the same district?

The best solution builds hostel for foreigner workers for different working class. For example, lodging targeting at white collar employees and not just limiting to blue collar workers. Students stay in the hostel as well; the experience is created, and we shall not be confined to the past impression of worker’s dormitory.

The other option will be to jointly collaborate with the Malaysian government to build the hostel in Johor Bahru that is nearby the future speed train between Singapore and Malaysia. That way, it can help to migrate the high numbers of foreign workers staying in our scarce land.