Getting more expensive

[LLx9]

Nothing wrong with going home!!
 
If enough people go home - expat rentals will go down.

Conversely - The reasons rentals are so high in 2007... is becasue too many expats are coming in.

[One year is enough]

We came to Singapore, as corny as it sounds for the experience also. We wanted to travel and that's what we did. For both of us, it was not a career move, and financially we are not that much better off here as we spend a lot more (on traveling & eating out!).

I'd say, if you have a chance to move here, do it - sure the working hours are crazy (I found that most Singaporeans just stayed back to look busy because that's what just everybody seemd to do here) but if you want to and try to make the best out of it, you will enjoy it.

[professional expats]

We hold EU passports but had not lived in any country for more than 5 years for the last 30 years. There is no country that is "home" to move back to. It might be more expensive in Singapore now than in the last year but we are still saving far more than if we were to be posted back to Europe. We were just there for 4 weeks for the summer and eating out cost a fortune and taxes are a nightmare. For those who don't have an expat package and have a home to go back to, I guess leaving would be a better option for you. Having said that, I know some teachers at our children's school who are pretty content with their relatively humble packages. How big a slice of the pie does one want and when one gets it, can one have it and eat it too?

[Dr. Phil]

professional expats, you miss the point.

Most Expats accept their package and those who do not materially benefit greatly, accept the trade-offs which gives them a beautiful country, lifestyle, security, first-rate services etc.

Most Expats rely on the confidence Singapore has earned to negotiate an Expat package and whatever the margins they feel sure there will be no unexpected upheavals.

Similarly with business, contract negotiations require confidence or stability in many things such as currency, interest rates, exchange rates etc.

When during the course of one year we get "stiffed" for 40-100% rent increases and we have really no option, then that is underhanded and unfair and shakes ones confidence in the infrastructure here. Particularly when a small minority benefit compared to an overwhelming majority of people who are relatively poorer (that includes 99.9% local population).

Its not the quantum of the loss but the principle.

[professional expats]

I might have missed YOUR point. However as a family who have moved so many times, we have had our fair share of bad hits. Being risk-takers is part and parcel of being an expat when you leave the safe haven of home. The economies of the country that you are posted to can go bad or can get better and that will impact on your lifestyle. We all need to ask ourselves, if the price is right. The rent situation here is a bummer but we have had moves when we had hit a windfall. It all evens out once you have done your 10th move.

[Dr. Phil]

profesional expats, I have been an expat for 40 years; if I am in a banana republic I expect commensurate risk. I have lived in some countries when personal security was the foremost concern and in others currency was not just unstable but non-negotiable.

I knew the risks.

Singapore is a modern sophisticated country, in many important ways far more so than USA or UK. So my expectation of risk is low; even natural hazards are few if any.

Furthernore the recent manipulations are not due to market forces.

[Spot on!]

professional expats, you miss the point.

Most Expats accept their package and those who do not materially benefit greatly, accept the trade-offs which gives them a beautiful country, lifestyle, security, first-rate services etc.

Most Expats rely on the confidence Singapore has earned to negotiate an Expat package and whatever the margins they feel sure there will be no unexpected upheavals.

Similarly with business, contract negotiations require confidence or stability in many things such as currency, interest rates, exchange rates etc.

When during the course of one year we get "stiffed" for 40-100% rent increases and we have really no option, then that is underhanded and unfair and shakes ones confidence in the infrastructure here. Particularly when a small minority benefit compared to an overwhelming majority of people who are relatively poorer (that includes 99.9% local population).

Its not the quantum of the loss but the principle.

This is spot on - there is no question about the risk of being an expat - but moving to a self-proclaimed First world country and seeing third world market conditions is a rather worrying situation.

There is a strong denial in government circles - the view is that there is more cash coming from tourists than from expats... but there is also a very limited understanding of market dynamics... once people start leaving, replacing them won't happen - companies will post people elsewhere. We've already stopped bringing families here due to the cost increase of both rental and schools... and this is not the end of it...

[Well said]

Well said! Ask any foreigner here today (renting, ie, most) how they feel and the answer will be anything from 'shocked and amazed' to 'disappointed'. Foreigners aren't going to accept the 100% increase in living costs that has happened in under 12months. The majority are planning to leave based on my conversations.

And yes, then expat rents will fall ... followed by prices.

[Full circle]

professional expats, you miss the point.

Most Expats accept their package and those who do not materially benefit greatly, accept the trade-offs which gives them a beautiful country, lifestyle, security, first-rate services etc.

Most Expats rely on the confidence Singapore has earned to negotiate an Expat package and whatever the margins they feel sure there will be no unexpected upheavals.

Similarly with business, contract negotiations require confidence or stability in many things such as currency, interest rates, exchange rates etc.

When during the course of one year we get "stiffed" for 40-100% rent increases and we have really no option, then that is underhanded and unfair and shakes ones confidence in the infrastructure here. Particularly when a small minority benefit compared to an overwhelming majority of people who are relatively poorer (that includes 99.9% local population).

Its not the quantum of the loss but the principle.

This is spot on - there is no question about the risk of being an expat - but moving to a self-proclaimed First world country and seeing third world market conditions is a rather worrying situation.

There is a strong denial in government circles - the view is that there is more cash coming from tourists than from expats... but there is also a very limited understanding of market dynamics... once people start leaving, replacing them won't happen - companies will post people elsewhere. We've already stopped bringing families here due to the cost increase of both rental and schools... and this is not the end of it...

If there are better options than Singapore, then move. 3 yrs later, when that place they have moved to becomes expensive and rents in Singapore decline, these same people will come running back. Silly isn't it.

[Not quite...]

If there are better options than Singapore, then move. 3 yrs later, when that place they have moved to becomes expensive and rents in Singapore decline, these same people will come running back. Silly isn't it.

Completely flawed logic - people moving will have learned their lesson - will likely buy or plan adequately in their contracts.... and won't have any incentive to come back when all the action has moved with them...

See Taiwan today - most companies closing and moving to Shanghai/Beijing... In the next 5 years, as infrastructures and living conditions improve, there won't be many "hardship" postings left...

Want a glimpse of the future - see how business Geneva is compared to London, Frankfurt or Paris... (hint: not...)

[Typo dude, typo...]

"busy"... not "business"...   

[thoughts for 2]

Singapore was looking for foreign talant? How can someone come here and get a 70-100% increase in living expenditures in one year? Even high earners need some sort of stability.. Hope the food and beverage people comming in at the IR can take up the slack..

[A note for Eliza]

Eliza, think about the experience, not about the money. If you money is your god, it will become your master.

Come here, see how other parts of the world live and work. Go back after a year, maybe two to Australia. But don't be influenced by all that you read.

Also remember Eliza, there are many other expats who've come for the local packages - give it a shot. If you're not happy, the buoyant Australian economy will always enable you to come back and land on your feet.

[mmmm.......]

You can come here for the experience and not the money....but if you don't have enough money to go out to dinners, travel, international schools for children if any, groceries are very expensive if you want to eat well and healthy well how much fun is it going to be.

Sitting at home because you don't have enough money isn't fun.  Make sure you have enough salary to cover everything otherwise it will be better staying put in Australia. 

Good luck.

[lámase los testículos]

.. and they call the poms whingers

Strangely enough, I know a lot of foreigners who live here because they like it. Yes, living costs have increased, but those who claim that the increase is 100% obviously have no grasp of even primary school level mathematics. The idea that 'true' expat live in big houses with pools amuses me greatly. What planet are you people from?

I don't think I actually know anyone who is here just for the money. If however that is your only motivation, that surely you have to accept that all good things do eventually come to an end. Singapore certainly doesn't owe you anything. I would also have thought that those people who are so motivated would have the sense to plan their finances in such a way to minimise the impact of price rises.

So stop complaining and simply move on to where you think there are currently greener pastures. Should be easy to do if you have no actual attachment to this little island