Singapore: National development minister Desmond Lee has revealed that the country will pilot a new class of serviced apartments with a three-month minimum stay to meet rental demand.
Announced at the 64th anniversary dinner of the Real Estate Developers’ Association of Singapore, Lee revealed that two Government Land Sales (GLS) sites in Upper Thomson and Zion Road will be launched in early December to pilot the scheme.
A proportion of the gross floor area at each of the buildings will be set aside for the long-stay apartments, representing a potential 535 serviced apartment units.
Currently, the Urban Redevelopment Authority (URA) mandates a seven-day minimum stay for serviced apartments in non-landed residential sites. Under the new government scheme, the minimum stay requirement for the long-term serviced apartments is in line with private residential properties.
The long-stay units will coexist alongside the short-stay units and cannot be strata subdivided for sale.
Lee said: “Serviced apartments today can cater to those who wish to stay for longer durations. But their seven-day minimum stay requirement means potential tenants – both Singaporeans and foreigners – must compete with those in Singapore for short stays, including tourists and business travellers.
“We need to maintain a healthy rental supply to cater to those who need to rent, such as those waiting to collect the keys to their new homes or for their renovations to be completed or because they are in some transition, as well as those who are here to work or study,” he said.
The two GLS sites will “allow us to gauge market demand before studying if this can be implemented more widely,” Lee added.
Further details from the URA are due to be released.
