Where should expats with kids rent in Singapore to save cost?

Recently, an Australian financial advisor took to TikTok to provide a detailed breakdown of how much expats need to earn annually to comfortably reside in Singapore. His estimations covered various aspects, offering a rough guide for expats, though he emphasised the variability of individual circumstances. 

While his breakdown provided a comprehensive overview, understanding the specific rental market dynamics is crucial for expat families seeking affordable housing options. Here, we explore the rental landscape in Singapore, focusing on the best areas for expats with children to save costs.

How much does it cost for expats with children to live in Singapore?

According to the TikTok breakdown, here’s a summary of estimated monthly and annual expenses for expats with children living in Singapore:

Note: The savings are based on saving 20% of one’s gross income. Total annual spending is between S$215,000 and S$220,000, excluding travel expenses.



How can you cut down on these numbers?

Comments on the TikTok video highlighted the difficulty expats may face in meeting these income requirements. One comment empathised with the struggle, noting that even a Singaporean household earning S$150,000 per annum finds it challenging to cover expenses without factoring in international school fees or rent.

So, how can expats navigate these financial hurdles? 

Opting for public schools in Singapore emerges as a cost-saving solution. While expats may pay higher school fees compared to Singaporean citizens, enrolling children in international schools serves a dual purpose of acclimatising them and facilitating a seamless transition back to their home country. 

Moreover, gaining admission to mainstream schools in Singapore can be competitive due to the high demand. Children compete with Singaporean pupils and Permanent Residents (PR) for enrollment, with priority given based on proximity to the school. While securing a spot in a top school is not impossible, it may require patience and persistence.

Here is the order of priority admission in Singapore:

1. Singapore Citizens (SC) residing within 1km of the school
2. SC residing between 1km and 2km of the school
3. SC residing outside 2km of the school
4. Permanent Residents (PR) residing within 1km of the school
5. PR residing between 1km and 2km of the school
6. PR residing outside 2km of the school

Another alternative is renting an HDB flat instead of a condo, as highlighted in the case study. While the analysis focused on condos, renting an HDB flat offers a more budget-friendly option for expat families looking to save on accommodation costs.

But that’s not all. 

HDB estates are typically surrounded by great amenities, such as nearby supermarkets, hawker centres, and even malls within a 5-minute walk. They are also conveniently located near MRT stations, making commuting easier. 

Another plus point? Most HDB projects often feature neighbourhood parks, recreational areas, and barrier-free facilities like ramps and handrails, enhancing mobility and convenience for residents.

In fact, there seems to be a noticeable trend emerging as expatriates opt to move from private condominiums to HDB flats due to the escalating rental prices. This increase in prices is putting pressure on expats, especially those holding employment passes, prompting them to explore other housing options like HDB flats.

Wondering if rental rates will reduce sometime this year? Here are our thoughts: Analysis: Will HDB rental fees decrease in 2024?

Rental costs across Singapore  for 3-room, 4-room, 5-room and Executives HDB flats

Here’s a glimpse into the median HDB rental costs in various towns across Singapore, based on our February 2024 flash report:

Taking a look at the table, you’ll notice that except for Sembawang and the Central Area, most 3-room HDBs are at most S$3,200 a month – and that’s for the Central Area, which explains the higher price tag.

Otherwise, here are the top 5 cheapest towns to rent a 3-room HDB in Singapore:

1. Bukit Panjang (S$2,300/month)
2. Hougang (S$2,500/month)
3. Pasir Ris (S$2,500/month)
4. Jurong East (S$2,600/month)
5. Jurong West (S$2,700/month)

However, there are two crucial points to consider here:

A 3-room HDB is equivalent in size to a 2-room condo unit. So, if you’re looking for more space and considering 4-room HDBs to rent, the lowest rental prices are still about S$3,000 to S$3,400. Here are the lowest rental prices for 4-room HDB flats:

1. Bukit Panjang (S$3,000/month)
2. Hougang (S$3,200/month)
3. Yishun (S$3,200/month)
4. Jurong West (S$3,400/month)
5. Tampines (S$3,400/month)

Looking for more tips that will help you save on rental rates? We got you: Renting in 2024? Here’s how to save on rental rates

Another thing to note is the Housing Development Board’s Ethnic Integration Policy (EIP). For those who don’t know, this policy aims to promote racial integration by ensuring a balanced mix of ethnic groups in HDB estates, preventing the formation of racial enclaves. 

As such, the EIP limits the percentage of a block or neighbourhood that can be occupied by a specific ethnicity. For expats this means that the maximum renting-out period is 3 years per application. 

However, if one or more tenants are non-Malaysian NC, the maximum renting-out period is 2 years. This means you’ll likely be moving every 2 years unless you decide to buy your own property.

Now, if you’re comfortable with these considerations, the next step is determining your eligibility:

What is the eligibility criteria for expats renting HDBs in Singapore?

Singaporeans can rent out their HDB flat to:

• Singapore Citizens (SCs)
• Singapore Permanent Residents (SPRs), or 
• Foreign expatriates holding specific documents like Employment Passes, S Passes, Work Permits, Student Passes, Dependant Passes, or Long-Term Social Visit Passes. 

However, there are some rules to follow. For instance, the minimum rental period is six months, and certain foreign workers, such as those in construction, marine, and process industries, aren’t allowed to rent HDB flats. Notably, Malaysian nationals are an exception to this rule.

Renting in Singapore? Let us know the towns you have your eye on in the comment section below or on our Facebook page.