THESE flats may be far away from the MRT station - or anything else for that matter. But rental units in the outskirts of estates are increasingly popular as the HDB rental market remains hot.
As a result, rents in these areas have shot up by as much as 50 per cent in the last two years, said Mr Mohamed Ismail, chief executive of real estate company PropNex. He said HDB rents had risen across the board, with those in outlying areas going up in tandem. He added that demand had risen with more foreigners living and working here.
He said: 'Two years ago, a four-room flat would rent at $1,000 to $1,200. Today, we're talking about $1,500 to $1,800.' But compared to flats in the same estate near an MRT station, outlying units are as much as 10 per cent cheaper to rent.
Mr Ismail said these flats are popular with middle-management employees. These include nurses and IT executives who earn between $2,000 and $4,000, as well as managers from the Philippines and music teachers from Europe.
He added: 'Assuming their income includes accommodation allowance, there is no way they could take up private property because the rental will suck up more than half of that.'
They look for rentals below $2,000 and as rent for flats near the MRT station is higher, they do not mind getting one in outlying areas and taking a feeder bus or walking a longer distance.
Another group which have driven up rents in the outskirts are university students who cannot get hostel rooms, said HSR Property Group's executive director Eric Cheng.
He said: 'If their first priority is price, then they have no choice but to take up relatively cheaper outlying flats.'
