As Singapore employers cut pay, expats are asking for lower rentals

Singapore has one of the world’s most expensive property markets, with rentals dominated by high-paid workers from overseas

The government has unveiled a range of Covid-19 support measures but most are aimed at Singapore citizens

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The popular Orchard district in Singapore. Some Singapore expats have asked their landlords for rental reductions as companies cut salaries during the coronavirus pandemic. Photo: SCMP / Roy Issa

Published: 12:45pm, 8 May 2020Updated: 9:18pm, 8 May 2020

Singapore expatriates are often envied for their generous pay packets but facing the prospect of salary cuts as the coronavirus batters businesses, some are tightening their belts and asking for lower rent.

Clarence Foo, a real estate agent at APAC Realty Ltd unit ERA, has come across seven such cases over the past month – the highest number of requests he has received during his seven-year career. Four were successful.

One was an American woman who texted Foo last week. In her message, she said she had just been informed of a 20 per cent drop in pay effective from May 1 until July 31, after which her employer will reassess the company’s financial health.

People socialise at a bar in Boat Quay before the coronavirus circuit breaker measures were implemented. Photo: Handout

The executive, in her 30s, is leasing a one-bedroom flat at Tanjong Pagar, near Singapore’s financial district, for S$3,400 (US$2,400) a month. She was granted a rent reduction of S$250 a month, or around 7 per cent.

“At first glance, it isn’t a lot. But over three months, the duration of her pay cut, it’s a substantial saving,” Foo said.