90% of Ascott’s Mt Pleasant bungalows leased out

The iconic black and white colonial bungalows near the city remain one of the most sought after housing types in Singapore.

Over 90 per cent of the 33 black and white bungalows on Mount Pleasant have been leased out by their master tenant The Ascott, which operates serviced residences around the world.

The Ascott has been running the black and white bungalows as serviced residences since 1999.

It is paying S$435,000 a month to the Singapore Land Authority (SLA).

The rare colonial bungalows, which are found in the city fringe areas, are state properties managed by the SLA.

Experts said the bungalows are popular among expatriates.

David Poh, senior group district director, PropNex, said: “With the economy doing so well last year and it will continue to grow this year, more expatriates from the higher management level will be coming over.

“These bungalows will serve the needs of the higher management well because they have a budget for it and they will be coming with their families.”

The Ascott won the master tenancy again last month after the bungalows’ lease was up for renewal.

It said it will retain the bungalows’ colonial charm but has done maintenance works in the past.

With lush settings and extra services like housekeeping, demand for such residences should remain strong.

Mr Poh said: “Expats are willing to pay about 15 per cent above market rate for something like this. … 10 to 20 per cent premium is acceptable to them because they are not just getting mere accommodation, they are getting serviced accommodation.

“Especially with a world famous brand like Ascott behind it, they are more willing to pay for it.”

Property watchers said monthly rentals for the bungalows can go up to S$30,000.

Source : Channel NewsAsia – 7 Jan 2011