Singapore is going to pilot a new class of long-stay serviced apartments with a three-month minimum stay period.
New type of residential arrangement
These new serviced apartment style units to be leased will be part of new estates to be built in Upper Thomson Road and Zion Road, which will include apartments for sale.
Currently, regular serviced apartments have a minimum stay duration of seven days, which typically caters to tourists and business travellers.
New rental units to meet demand
The change in developing a different housing type in Singapore is to meet increased private housing rental demand, as previously mentioned by the Minister for National Development Desmond Lee.
Over the past few years, a lifestyle shift has seen more opting to lease than buy and has caused residential rents to go up, especially during and after the pandemic.
3 sites launched for sale: URA
The announcement was part of the Urban Redevelopment Authority news release that three sites were launched for sale under the second-half 2023 Government Land Sales (GLS) confirmed list on Dec. 4.
The three parcels are known as Zion Road Parcel A, Upper Thomson Road Parcel A, and Upper Thomson Road Parcel B.
Upper Thomson Road via Google Maps
535 serviced apartments in total
They can yield a total of 2,750 units, of which 535 are serviced apartments and the rest for sale.
As per the plan, the Upper Thomson Road Parcel A will have 100 serviced apartments, while the Zion Road Parcel A will have 435 serviced apartments.
The Zion Road location is near Havelock and Orchard Road and the city centre.
The Upper Thomson Road location is near Springleaf MRT stations and close to new private homes in the Lentor Hills area.
Possible trial
This latest pilot scheme is likely a way to test waters.
Tan Tee Khoon, country manager at PropertyGuru Singapore, told The Straits Times that more sites may be released for a “build-to-rent” model should the pilot prove successful.
4th site on reserve list
A fourth site, Zion Road Parcel B, is available for application under the reserve list.
It has a potential yield of 610 residential units.
For this reserve list site, it is put up for tender only when a developer has indicated a minimum price deemed acceptable by the government.
Top photo via Google Maps