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Experts say that this will provide short-term reliefs for hoteliers given that Singapore’s hotels are currently running at low occupancies.
While the city-state’s rental market may not witness a significant increase in demand from Malaysia’s two week travel restrictions, market watchers expect budget hotels to experience a short-term bump in demand, reported The Business Times.
Malaysia imposed a nationwide lockdown until 31 March. With this, some Malaysian workers decided to stay here in Singapore in order that their wages may not be affected.
The Singapore government said it will work with dormitory and hotel providers to offer lower cost rentals. It will also offer financial support to companies needing to put up affected workers from Malaysia to the tune of $50 per worker per night – capped at 14 nights.
The authorities added that they are prepared to be flexible on HDB flats’ minimum leasing period.
Private residential properties typically have a minimum lease period of three months and six months for HDB flats.
Nicholas Mak, Head of Research at ERA Realty, noted that some workers may prefer staying in budget hotels until they find a permanent accommodation.
This could provide some much needed short-term relief for hoteliers given that Singapore’s hotels are currently running at low occupancies.
Christine Li, Head of Research for Singapore and South-east Asia at Cushman & Wakefield, believe that some Malaysian workers may stay in budget or economy hotels or even serviced apartments within suburban areas, particularly if bigger firms are able to secure their employees corporate rates.
Lee Sze Teck, Director of Research at Huttons Asia, does not expect an increase in short-term rentals. According to him, displaced Malaysian workers are more likely to stay with their relatives here in Singapore, should they have any.
“Having said that, the Covid-19 situation is fluid and strategies are continuously evolving to contain the virus. Malaysians may want to consider renting a room in Singapore for three months in case of an extended lock-down,” he said.
Meanwhile, Transport Minister Khaw Boon Wan revealed in a Facebook post that public transport operators like SMRT, along with the Land Transport Authority and National Transport Workers’ Union, have secured hotel accommodation for bus captains from Malaysia who opted to work and stay in the city-state during the two-week period.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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