REIT has not hands in increased in rental ??????

There is nothing fantastic about Singapore's shopping. Things are replicated across all malls. Nothing impressive and everything are so expensive.
I bought an OTTER case plus defender for my Note 2 hp for only 15sgd (40Ringgit) in Holiday Inn Malaysia JB .

Guess what , in Singapore what is almost identical is being priced at $50 to $60 bucks !

congo9 said:

I bought an OTTER case plus defender for my Note 2 hp for only 15sgd (40Ringgit) in Holiday Inn Malaysia JB .

Guess what , in Singapore what is almost identical is being priced at $50 to $60 bucks !

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good brother, you know the saddest part, the sg retailer is still not profitable, after selling u $50-60
thanks to reits

Singapore office rents may rise fastest in the world this yr
http://www.reuters.com/article/2014/05/26/singapore-press-office-rents-idUSL3N0OC03720140526

In Singapore, a rental increase from S$8,000 to S$12,000 a month forced Hong Kong Jin Tian Eating House in Tiong Bahru to close down.

There is no reason for shop operators to work hard for the benefit of property owners.

Other good food outlets have closed due to such rental increases, while the impending closure of popular Lavender Food Square may be a precursor to other hawker centres making way for REITs.

Some aggressive REITs might demand double the rent to renew a lease, without any compassion for the business owner, while other shopping centres follow with 30 to 50 per cent increases.

How do SMEs double their profits to meet such demands when they must cope with cost increases in labour and other services?
http://www.todayonline.com/voices/reits-should-not-maximise-profits-expense-smes

Singapore Retail Sales (YoY) fell from previous -3.9% to -9% in April

http://www.fxstreet.com/news/forex-news/article.aspx?storyid=e72d0750-6f07-4252-ba89-03d689551629

Growth of Reits correlates with rising rentals

The growth in the number of Reits as well as their rising earnings correlate with the increase in rental and business costs in Singapore.
http://www.straitstimes.com/premium...owth-reits-correlates-rising-rentals-20140730

This is according to a study conducted by the Ministry of Trade and Industry (MTI)

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This is all you need to know that the study is pure bullshit. How about an independent study instead of a kelong one done by your own minions of the establishment?

congo9 said:

There is nothing fantastic about Singapore's shopping. Things are replicated across all malls. Nothing impressive and everything are so expensive.
I bought an OTTER case plus defender for my Note 2 hp for only 15sgd (40Ringgit) in Holiday Inn Malaysia JB .

Guess what , in Singapore what is almost identical is being priced at $50 to $60 bucks !

Click to expand...

Indeed, and it's usually the same crap everywhere: telco shops, George Quek's eateries and bakeries, at least one supermarket, banks, the usual franchise restaurants, basement carpark.

Especially the malls owned by Capitaland, I swear there's some cookie cutter template for them. If you've been to one you'd more or less know what's in the others.

The malls with lower rent are turned into hubs for maid agencies, travel agencies and massage shops.

High rental will kill the retailing business.
my female colleagues telling me they are buying clothes, dress, makeup items and even groceries also buy online.

i think we will be doing more internet shopping in future rather than go shopping and buy.

SNTCK said:

High rental will kill the retailing business.
my female colleagues telling me they are buying clothes, dress, makeup items and even groceries also buy online.

i think we will be doing more internet shopping in future rather than go shopping and buy.

Click to expand...

Hang those PAP maggots cockroaches with piano wires from lamp posts to make them dance before it is too late and we have no more CPF to get back.
BBQ those PAP maggots cockroaches before it is too late and we have no more CPF to get back.
Cut a few more arseholes into those PAP maggots cockroaches to let out their shit before it is too late and we have no more CPF to get back.
Make those PAP maggots cockroaches eat joss sticks and candle wax before it is too late and we have no more CPF to get back.

Reits may play 'major role in shop rent hikes'
http://www.stproperty.sg/articles-p...y-play-major-role-in-shop-rent-hikes/a/165973
REAL estate investment trusts (Reits), which own numerous malls across Singapore, may play a major role in shop rent hikes, business leaders say.

SNTCK said:

High rental will kill the retailing business.
my female colleagues telling me they are buying clothes, dress, makeup items and even groceries also buy online.

i think we will be doing more internet shopping in future rather than go shopping and buy.

Click to expand...

It's now common for people to go on weekend trips to Bangkok & KL with empty bags & return with packed bags. I do most of my shopping directly from the US & I've noticed that many US companies are more than willing to ship to Spore.

Simple solution is to reduce intake of foreigners, especially rich foreigners.
Less rich foreigners means posh restaurants and shops will be affected.
It translates into lower offices/ shops/ housing rental.
They push up every price and out commoners' right and space.
It likes in JB where sinkies have been pushing up everything in the past 20 years.
Retribution!!!

Runifyouhaveto said:

In Singapore, a rental increase from S$8,000 to S$12,000 a month forced Hong Kong Jin Tian Eating House in Tiong Bahru to close down.

There is no reason for shop operators to work hard for the benefit of property owners.

Other good food outlets have closed due to such rental increases, while the impending closure of popular Lavender Food Square may be a precursor to other hawker centres making way for REITs.

Some aggressive REITs might demand double the rent to renew a lease, without any compassion for the business owner, while other shopping centres follow with 30 to 50 per cent increases.

How do SMEs double their profits to meet such demands when they must cope with cost increases in labour and other services?
http://www.todayonline.com/voices/reits-should-not-maximise-profits-expense-smes

Click to expand...

If I am not wrong, I have been hearing from the gov. mouthpieces that in the past 6 months many shops were closed down due to unavailability of cheap labour.

laksaboy said:

Indeed, and it's usually the same crap everywhere: telco shops, George Quek's eateries and bakeries, at least one supermarket, banks, the usual franchise restaurants, basement carpark.

Especially the malls owned by Capitaland, I swear there's some cookie cutter template for them. If you've been to one you'd more or less know what's in the others.

The malls with lower rent are turned into hubs for maid agencies, travel agencies and massage shops.

Click to expand...

That's quite true....just go around to bukit timah shopping,bukit timah plaza or beauty world.....sigh

SNTCK said:

High rental will kill the retailing business.
my female colleagues telling me they are buying clothes, dress, makeup items and even groceries also buy online.

i think we will be doing more internet shopping in future rather than go shopping and buy.

Click to expand...

this is a positive trend and it will force the malls to relook the high rents they charge.

what MTI says is technically true, but their explanation is so simplistic, its like that of a 5 year old child. when REITs invest in a new mall, they want the developer to lease back from them. and they are asking around a 6% capitalization rate now. So, the developer's property management arm has to price the rents in such a way that achieve this 6% target as well as make a little for themselves too. So, all in, the property management must factor in for around an 8% cap rate on the gross rent. Considering how expensive commercial real estate is, this results in a high rent for the merchants. So, if the REIT paid $100 million for the mall, they require a return of $6 milllion a year in income based on a 6% cap rate. the management company has to get this amount of rent from the merchants in the mall because they are holding the master lease. If they don't, they will lose money every month. In reality, the property manager needs to get 7-8% cap rate, as they have their own overhead. So, indirectly, the REITs are really the one that demands this type of rents in the malls.