Singapore’s plan to attract foreign technology workers into the country by implementing the Tech@SG scheme could help increase the demand for rental homes and boost the country’s home rental market. According to Christine Sun, head of research and consultancy at OrangeTee, the market is already seeing an increased demand for luxury houses coming from sectors like technology, banking, finance, and fintech.

For a firm to qualify for the Tech@SG scheme, it needs to secure at least $10 million in venture capital funding. The fund should also come from a programme-recognised VC and in the past 36 months. It will facilitate the entry of highly qualified and efficient foreign workforce into Singapore.

According to Minister for Trade and Industry Chan Chun Sing, Singapore lacks experienced software engineers and product managers who can oversee the development and rollout of digital products at a global scale. To meet the shortage, foreign engineers or product managers would be brought into the country.

Factors such as these are expected to boost the home rental home market in Singapore. Rents for private properties are already on the rise in Singapore.

While rentals for private homes in Singapore increased by 1 percent in the first quarter of 2019, it increased by 1.3 percent in the second quarter. After the implementation of the new scheme in the fourth quarter, rents are only expected to increase.

PropNex executive chairman and chief executive Ismail Gafoor told the media that, “Most of these people will have to find a place to stay. The higher-level executives who come in with their families usually get a housing allowance, and a bigger apartment will then be in demand. If they come individually, what we may see is a bigger demand for studio apartments and smaller flats.”