Rent is killing Singapore

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Monday, May 26, 2025

Singaporeans livid at Amy Khor who said “stall rentals do not directly affect food prices”​

By Obbana Rajah
November 21, 2018

At a Parliamentary session on Monday, November 19, Senior Minister of State for the Environment and Water Resources Dr Amy Khor said that the rental cost borne by hawkers only indirectly affects their overall costs, and therefore does not directly affect food prices.

She added that according to a study done in 2014 by the Ministry of Environment and Water Resources (MEWR) and the Ministry of Trade and Industry (MTI), rental only took up 12 per cent of hawkers’ costs, with 76 per cent going to manpower and the cost of raw materials.

Dr Khor then said, “Hence, stall rentals do not directly affect food prices”.

She said that hawkers “generally price food according to what the market can bear”, and food prices are influenced by competition in the vicinity and the demographic profile of customers.

https://www.facebook.com/allsgstuff/photos/a.1993158977491488/2816455675161810/?type=3&theater

Many Singaporeans we angered by Dr Khor’s comments, saying that she’d lost touch with the sentiment on the ground. Others also insisted that an increase in rental would very likely lead to an increase in the price of hawker food, and they cited examples of ‘kopi’ at hawker centres.

 

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New measure by NEA to deter high bids for hawker stalls​

Under the new measure, NEA will be staggering the downward adjustment of tendered stall rentals over a longer period.PHOTO: ST FILE
Ariel Yu
Nov 04, 2024

SINGAPORE - Hawkers who submit high bids for stalls from November’s tender exercise will no longer see their rents drop immediately to market rates after their three-year tenancy, as is the case now.

This is to encourage them to exercise restraint and prudence when making their bids.

The new initiative was announced on Nov 4 by the National Environment Agency (NEA) for stalls under its purview.

Existing hawkers will not be affected.

The Straits Times understands that about 200 market and cooked food stalls are put up for each tender exercise.

Over 6,000 cooked food stalls and more than 7,000 market stalls are currently under NEA’s purview.

Currently, after hawkers pay their tendered bid price as monthly rental for the first tenancy term, which lasts for three years, they will see their stall rental rates adjusted to market rates, as determined by an independent assessor.

So hawkers in popular areas where bid prices are higher than market rates can expect their rates to come down immediately after their tenancy period ends.

The median assessed market rate (AMR) for non-subsidised cooked food stalls has remained constant since 2019 at about $1,200 per month.

With the new measure, NEA will be staggering the downward adjustment of tendered stall rentals over a longer period.

Instead of an immediate full downward adjustment to the AMR at the point of first tenancy renewal, the rental for such hawker stalls will be adjusted downwards by 50 per cent of the difference between their tendered rent and AMR for the second tenancy term.

From the third tenancy period onwards, the rent will be the market rate.

For example: If the tendered rent for a stall is $5,000 and the AMR is $1,000, the stall owner will have to pay $5,000 for the first three years of tenancy, and then $3,000 for the second tenancy term.

The rent is then adjusted to $1,000 for the third tenancy term, which starts in the seventh year.

Essentially, the tendered rent will be adjusted to the AMR over a longer period, instead of at the fourth year of tenancy.

This is to deter high stall tender bids and also to encourage bidders to take into consideration longer-term business costs.

If the tendered rent for a stall is lower than the AMR, NEA will moderate the rental increase towards the AMR to help stallholders to adjust gradually.

Rental increases have not exceeded $300 per tenancy term, according to NEA.

The agency said that only about 4 per cent of cooked food stalls in hawker centres today are paying rents above the AMR.

Based on successful tender bids in 2023, about 56 per cent of the tender bids were above the AMR and 44 per cent of the tender bids were below the AMR.

Separately, about 30 per cent to 40 per cent of hawkers from pioneer batches in Singapore pay subsidised rental rates. NEA said the current measure and the new one introduced on Nov 4 do not apply to this group of hawkers because they pay a flat rate.

Mr Anthony Low Hock Kee, 57, vice-president of the Federation of Merchants’ Associations, said the new measure is “a good move” as it will discourage people who want to take advantage of the one in place now.

Mr Low, who is a cooked food stall hawker at Boon Lay Place Food Village, added that the new measure will also assure newer hawkers that they do not have to bid too high for stalls.

Mr Kang Kaiming, 67, a hawker who runs a Hokkien prawn noodles stall in Aljunied, said there should still be a minimum and a maximum bid price, to be fair to all hawkers.

“High bids affect potential new hawkers who are really keen on joining the hawker businesses but do not have enough financial resources to do so,” he said.

He added that hawkers who submit high bids have to adjust their food prices accordingly, and may not be able to sustain their business in the long run if their food prices are higher than other hawkers’.

During monthly stall tender exercises, NEA provides additional stall rental information to tenderers. It is currently reviewing what would be useful for them.

The information provided now to tenderers includes the list of five highest tender bids received in past exercises, the final tender results of past exercises, and resources on tendering for a hawker stall such as brochures and videos.

The agency will also be providing online business cost estimation tools for tenderers to make better business cost and revenue estimates.

Senior Minister of State for Sustainability and the Environment Koh Poh Koon said the additional information provided to tenderers has to be something that is meaningful for them to make their necessary cost calculations.

Speaking at the Singapore Hawkers’ Seminar and Awards 2024 on Nov 4, he said: “Rental may form about 10 per cent or less of their costs... The kind of dishes they offer will have impact on the kind of material costs they have to (factor) in as well.”

 

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Bukit Batok coffee shop 'sold for $31m'​

Reported sale sets record; tenants say new landlord has raised rentals​

The coffee shop in Bukit Batok Street 11 has 19 stalls.ST PHOTO: ALPHONSUS CHERN
Melissa Lin
Jun 16, 2015

A COFFEE shop in Bukit Batok has reportedly changed hands for $31 million, setting a record for a Housing Board coffee shop.

The sale of Yong Xing Coffee Shop at Block 155, Bukit Batok Street 11 was finalised last month, according to Chinese evening daily Lianhe Wanbao.

Tenants told The Straits Times they felt the effects of the big money deal when their rental agreements with the new landlord went up by at least 10 per cent, but they hoped not to raise prices for their customers.

According to Wanbao, the seller had bought the place for $3.38 million nearly 20 years ago. He is believed to own another large coffee shop in Jurong West Street 91.

The buyer is a new company, EH 155, believed to be set up by the brother of Mr Ricky Kok Kuan Hwa, the founder of coffee shop operator Chang Cheng Group, which owns the Chang Cheng Mee Wah chain of coffee shops.

Business registration records show a director of EH 155 is Mr Kok Kuan Pow, a former director of Chang Cheng Mee Wah. He could not be reached for comment. The selling price of the 4,521 sq ft coffee shop works out to about $6,856 per sq ft (psf).

It beats the previous record set in 2013, for a coffee shop in Hougang Avenue 4, sold for $23.8 million. That worked out to about $5,935 psf.

Location was clearly a factor in the Bukit Batok transaction, as Yong Xing is surrounded by housing blocks and retail shops, with the nearest shopping mall, West Mall, a 15-minute walk away.

While this is true of other coffee shops in the vicinity, Yong Xing trumps the competition with its 19 stalls, said customers. It is the largest and offers the greatest variety of food options.

Bukit Batok resident Prescealla Ong, 40, frequents it as a number of stalls are quite famous, such as Fatty Weng, which sells fish soup.

"I haven't noticed any price increase yet, but I think the stalls will raise prices sooner or later," said the real estate agent.

Owner of Ar-Rina Nasi Padang, Mr Zainal Arrfin, 49, who just renewed his two-year lease, said he has no plans to raise prices for now.

"Most of my customers are regulars, so I don't want to increase prices. I'll see what happens after these two years," he said.

 

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Tampines coffee shop sold for record $41.68m; tenants say rent doubled​

The $41.68 million deal topped the previous reported record of $31 million for a coffee shop in Bukit Batok in 2015.ST PHOTO: ALPHONSUS CHERN
Isabelle Liew
Jun 16, 2022

SINGAPORE - A coffee shop in Tampines changed hands for a record $41.68 million, and some tenants are thinking about terminating their agreements following a surge in rent.

A firm called G&G (21) lodged a caveat with the Singapore Land Authority in April for the coffee shop, 21 Street Eating House, in Block 201 Tampines Street 21.

The transaction is expected to be completed next month, local media outlet 8world reported on Wednesday (June 15).

The deal topped the previous reported record of $31 million for a coffee shop in Block 155 Bukit Batok Street 11 in 2015.

Based on Accounting and Corporate Regulatory Authority records, G&G's director, Mr Kiong Tai Weng, owns several other businesses including the 7 Stars coffee shop chain and U Stars supermarkets.

In 2014, he bought the Hong Kong Street Zhen Ji foodcourt in Block 151 Ang Mo Kio Avenue 5 for $7.4 million as the late founder was his mentor, The New Paper reported.

The 604 sq m Tampines coffee shop, which has 18 stalls, has 76 years left on its lease, according to a property title information search.

The purchase price of $41,682,168 works out to about $6,411 per sq ft (psf) - almost on a par with the average of $6,964 psf for ground level retail units in Far East Plaza and Lucky Plaza in Orchard Road sold this year, data from ERA Research and the Urban Redevelopment Authority showed.

Some tenants at the Tampines coffee shop told The Straits Times that rents there have surged since a new operator took over in April.

The owner of Zaleha Food Corner, who wanted to be known only as Madam Zaleha, 66, said rent doubled from $6,000 to $12,000.

"I've been doing business here for 23 years, but I think we cannot afford the rent now. Maybe I'll have to close my stall."

Madam Zaleha added that she has had to raise prices by between 20 cents and 50 cents, and worries she cannot pay her five workers their salaries.

The 604 sq m Tampines coffee shop, which has 18 stalls, has 76 years left on its lease. ST PHOTO: ALPHONSUS CHERNST PHOTO: ALPHONSUS CHERN
The owner of Kumamoto Ramen, who wanted to be known only as Ms Jacquelyn, had to let two workers go, leaving one worker to man the stall since April.

"We've been making a loss since rent doubled and we can't increase our prices. That's why we're thinking of pulling out," said Ms Jacquelyn, who is in her 40s, adding that she is now paying nearly $10,000 in rent, which used to be about $5,000.

Another tenant, who declined to be named and runs two stalls at the coffee shop, said rent rose 30 per cent and he had to fork out an additional $10,000 in total for both his stalls.

"The location is good, but business is not great. We've been making a loss since April," he said.

Some tenants at the Tampines coffee shop told The Straits Times that rents there have surged since a new operator took over in April. ST PHOTO: ALPHONSUS CHERNST PHOTO: ALPHONSUS CHERN
Mr Nicholas Mak, ERA Singapore's head of research and consultancy, said there is optimism in the market as lunch and dinner crowds in food and beverage establishments have nearly returned to pre-pandemic levels.

He noted that the Tampines coffee shop is surrounded by Housing Board blocks, which is a good catchment area for potential customers.

"But it also faces competition - there are about four other coffee shops within a 10-minute walk," said Mr Mak.

"The buyers should be mindful of the competition. If they raise rents too high, tenants will just go elsewhere."

But the $12,000 rent did not deter the owner of Hua Xiang Mala Kitchen, who set up shop there in April.

The owner, who declined to be named, said business is stable.

The Tampines coffee shop is surrounded by Housing Board blocks, which is a good catchment area for potential customers. ST PHOTO: ALPHONSUS CHERN
The supply of coffee shops is limited as HDB stopped selling them since 1998, noted Huttons Asia's senior director of research Lee Sze Teck.

As most coffee shops have about eight to 10 stalls, the 18 stalls at the Tampines coffee shop could have pushed prices higher, he added.

"Buyers usually hold coffee shops for stable rental returns and seldom let go unless they receive a very good offer. Individuals and coffee shop chains are always on the lookout for such prized assets," he said.

 

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Coffee shop in Yishun sold for $40 million, in second such sale this year​

Stall holders at KPT Kopitiam in Block 848 Yishun Street 81 said that they had been informed of the sale.PHOTO: LIANHE ZAOBAO
Jean Iau
Jun 20, 2022

SINGAPORE - A coffee shop in Yishun has changed hands for $40 million, with a price per sq ft (psf) surpassing that of some ground level retail units in the prime Orchard Road shopping belt.

A firm called Y848 lodged a caveat with the Singapore Land Authority (SLA) on May 10 for the 24-hour KPT Kopitiam located in Block 848 Yishun Street 81.

This is the second coffee shop to be sold around this price, after news earlier this week that a coffee shop in Tampines was bought over for a record $41.68 million.

However, the 397 sq m Yishun coffee shop, which has 14 stalls, is smaller than the 604 sq m Tampines coffee shop, which has 18 stalls. This means its psf price works out to be $9,361, compared to $6,411 for the Tampines coffee shop.

The Yishun coffee shop's psf price eclipses the average of $6,964 psf for ground level retail units in Far East Plaza and Lucky Plaza in Orchard Road sold this year, according to data from ERA Research and the Urban Redevelopment Authority (URA).

It has 78 years left on its lease, two years more than the Tampines coffee shop, which is located at Block 201 Tampines Street 21.

Local media outlet 8world reported that the transactions for both coffee shops have yet to be completed. A caveat lodged with SLA secures a property for the buyer.

According to the Singapore Business Directory, Y848 is registered at Chang Cheng HQ in Woodlands. Chang Cheng Group owns more than 160 food outlets in Singapore, with brands such as the Chang Cheng Mee Wah coffee shop chain, Chang Cheng Chinese Vegetables Rice and Rong Kee Roasted Delights.

Mr Nicholas Mak, ERA Singapore's head of research and consultancy, told The Straits Times that he believes the two big-ticket sales come as a result of the broad easing of Covid-19 measures that investors wager will bring diners back to coffee shops in droves.

"The lifting of Covid-19 restrictions signals to the investors that things are going back to normal and the diners are coming back, so it gives them some confidence to enter the market," said Mr Mak.

"We could still see some more of such transactions this year, but rising interest rates might dampen such aggressive bids. As interest rates increase, the cost of financing these investments will increase."

Mr Lee Sze Teck, senior director of research at Huttons Asia, said coffee shops are a “resilient asset class”.

“After all, coffee shops serve heartlanders; people do need to eat and (coffee shops) offer affordable options compared to restaurants.”

While the supply of coffee shops is limited as HDB stopped selling them since 1998, he added that a company like Chang Cheng Group, with its food and beverage offerings, can own and operate a coffee shop, rather than just earning rent, which could explain the much higher price per square foot for the Yishun property.

“They could have businesses they could feature in the coffee shop to earn (revenue) at the same time... and this is very different from those buying just to earn from rent.

“Their considerations can be very different from people buying solely to own (the coffee shop).”

Stallholders at KPT Kopitiam said on Friday (June 17) that they had been informed of the sale, and that the management would change in September.

A woman who works at the beverage stall and wished to be known only as Madam Mok, 50, said workers were unsure if rents would increase.

"We've been serving customers here for over ten years. We don't know what will take place when they pass over to the new management, but we will keep working until then and see what happens," she added.

 

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HDB regulates rent for its coffee shops, but market is free to operate for private-sector rentals​

There are currently 776 coffee shops, of which 374 are owned by HDB and 402 are privately owned.PHOTO: ST FILE

Jean Iau
Feb 07, 2024

SINGAPORE - Over the last five years, the Housing Board did not increase rent for 97 per cent of the 374 coffee shops it owns when their tenancies were due for renewal.

But the other 402 privately owned coffee shop operators, and the stallholders who rent from them, must be allowed room to abide by market principles, Senior Minister of State for National Development Sim Ann told Parliament on Feb 7.

She was responding to Ms Yeo Wan Ling (Pasir Ris-Punggol GRC) who asked whether the Ministry of National Development (MND) will consider taking further measures to help stallholders of coffee shops keep food prices affordable in the heartland.

Ms Sim said that over the last five years, the increase in the median rent of HDB rental coffee shops has been limited to 1.6 per cent at renewal, as part of efforts to help operators and stallholders in a rising cost environment.

HDB plays its part as a responsible landlord by keeping its rents stable and through the budget meal initiative, she added.

There are currently 776 coffee shops, fewer than half of which are owned by HDB. The remaining 402 are privately owned. Since 1998, HDB no longer sells coffee shops and only rents them out.

In recent years, some privately owned coffee shops made headlines after they changed hands for more than $40 million.

For privately owned coffee shops, Ms Sim said the HDB does not regulate stall rentals that owners charge, as these transactions are private commercial agreements between the coffee shop owners and the stall operators.

Coffee shops need to be operated by people in the trade, she added.

“We are also mindful that HDB is not itself directly in the business of cooked food provision, so we do need to allow room for the coffee shop operators as well as stallholders to abide by market principles and operate,” she said.

Responding to Workers’ Party MP Jamus Lim (Sengkang GRC), who asked if there are plans for the Government to reacquire these privately owned coffee shops, she said this is not a step that the Government would take lightly.

While the Government is not in the business of providing cooked food or stipulating its prices, the best safeguard against runaway cooked food prices is ensuring its wide availability, she said.

This is done by ensuring there is a good spread of food and beverage premises across the island, including coffee shops in HDB estates, as well as other kinds of F&B outlets and hawker centres, she added.

The National Environment Agency manages the 119 markets and hawker centres islandwide. It regulates their tenancies and public health aspects.

Ms Sim said: “In terms of how (the) Government generally deals with the private sector, I think it’s also important that we are clear about where the market is free to operate and where the Government comes in with interventions.”

 

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Proposals to modify hawker stall rental system may lead to higher rents: Koh Poh Koon​

According to an NEA survey in 2023, the cost of food ingredients accounted for nearly 60 per cent of operating costs.PHOTO: ST FILE

Goh Yan Han
Nov 14, 2024

SINGAPORE - Ideas from opposition MPs to adjust the hawker stall rent system may in fact lead to higher rentals, warned Senior Minister of State for Sustainability and the Environment Koh Poh Koon.

“We must make sure that the cure that we are all proposing is not going to be worse off than the issue we’re trying to resolve, to the detriment of hawkers and consumers,” he added.

He was speaking during a debate in Parliament on Nov 13 on a motion proposed by Progress Singapore Party Non-Constituency MPs Leong Mun Wai and Hazel Poa.

Their motion had called on the Government to review its policies relating to hawkers and the management of hawker centres to provide better support for hawkers to sustain and grow Singapore’s hawker culture so that Singaporeans can continue to enjoy good and affordable hawker food.

They had proposed several methods to reduce rent, meant to alleviate cost pressures for hawkers. These included moving away from the current tender system for stall allocation, and a different way to determine rents.

Addressing their proposals during a 5½-hour-long debate, Dr Koh first highlighted that rental costs are not the main component of overall costs borne by hawkers.

According to a National Environment Agency survey, the cost of food ingredients accounted for nearly 60 per cent of operating costs on average in 2023, he said.

Manpower costs take up about 20 per cent, while rental costs make up less than 10 per cent of operating costs, he added.

Dr Koh noted that stall rentals at hawker centres are generally lower than at nearby eating establishments such as coffee shops, foodcourts and small eateries.

For a majority of cooked food stallholders in hawker centres, median rent is about $1,250 a month, and has remained relatively stable for the past decade. This is even as overall prices have continued to rise.

Stressing that the Government, which builds the hawker centres, does not use rent for cost recovery, Dr Koh said that rental amounts are determined by what the tenderers bid. This can be as low as $1.

There is no reserve rent or minimum bid price, which means bidders can obtain stalls at low rental rates.

More than 300 stalls were obtained at bids below $100 over the last three years, while a few in 2023 and 2024 even won bids at $1, he added.

The Government regularly reviews and improves its measures to moderate hawker stall rents, Dr Koh said. For example, allowing stalls to be sublet in the past had led to higher rents, so the authorities moved in 2012 to disallow such subletting.

Another example is the change in policy to stagger the downward adjustment of the tendered rental rate over a longer period, over two tenancy renewals instead of one currently. This is to discourage prospective hawkers from putting in excessively high bids to win the tender, and then banking on rental being adjusted downwards to the assessed market rent later, said Dr Koh.

He added that occupancy rates for cooked food stalls have remained high, averaging above 95 per cent.

In 2023, the median successful tender price for such stalls was about $1,800, with about one in five stalls awarded at tender prices at or below $500.

More than four in 10 bidders were able to secure their bids below the assessed market rent, said Dr Koh. “So our system has actually kept rental prices reasonably affordable.”

“Overall, the tender system is working. We have made recent changes, and we expect to see some positive impact. We will continue to review, taking in suggestions and feedback from members and from hawkers themselves to continue improving the system.”

The authorities will be making available more information and online business cost estimation tools, as announced earlier in November.

This is to assist and encourage tenderers to make a more informed decision and to bid realistically, said Dr Koh. More details will come in early 2025.

He also addressed a $10,158 stall tender bid in July at Marine Parade Central Market and Food Centre that had made headlines and was cited by several MPs, including Mr Leong, in the debate.

This is an outlier bid – the only one over $10,000 in the last five years, said Dr Koh. Of the 7,000 cooked food stalls, only 4 per cent of rentals today are above the assessed market rent of $1,250.

“We have to be quite careful not to abandon a system that has actually worked quite well and benefited many hawkers just because of a small number of outliers,” he said.

Circling back to the proposals made, he acknowledged that there is no perfect system, but the Government will keep trying.

Mr Leong had proposed that instead of using the tender system, all hawker stalls be charged a monthly base rent of $500 or 3 per cent of gross turnover, whichever is higher.

In response, Dr Koh said that going by gross turnover would require a point-of-sale system for every stall in order to track what the takings really are.

On the fixed-rent model, he asked what price would be used to predetermine rent.

If the assessed market rent is used, all prospective hawkers would have to pay this price. This would mean that the 44 per cent of current hawkers who are currently bidding under the assessed market rent would have to pay more, said Dr Koh.

Ms Poa proposed that the allocation of hawker stalls be changed from the current system, which allocates to the highest rent tenders.

One way to do it could be by random ballot, while another could be to allow customers to decide, she said. For hawker centres located near Housing Board flats, residents living nearby could vote for their desired stalls, she added.

Dr Koh said that while balloting could provide an equal chance to all to obtain a stall at an upfront fixed rate, it could also encourage frivolous applications and excess demand for stalls at popular locations. This may not be fair to prospective tenderers with a genuine intent to set up a new stall, and this would also not benefit patrons, he added.

Workers’ Party MP Louis Chua (Sengkang GRC) had proposed a rental cap.

Dr Koh said a cap threshold gives bidders the assurance that bids will not go beyond a maximum ceiling, but could also encourage bidders to bid more competitively towards that ceiling in order to price out their competition. That could mean the end of the $1 rental bid stalls that currently exist, and could lead to overall bid prices trending higher, he added.

“As Mr Leong has also noted, rent is not really the major cost factor,” he said. “What hawkers need is customer footfall and fair pricing, so that they can have a decent margin and an income on the goods that they sell, because even if the rent is free, no footfall equals to no income.”

 

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Forum: Fixed rent system for hawker stalls would remove focus on bid prices​

Nov 22, 2024

I appreciate the latest efforts by the National Environment Agency (NEA) to deter high bids for hawker stalls by introducing safeguards against aggressive bidding practices (New measure by NEA to deter high bids for hawker stalls, Nov 4).

While this policy change is a step in the right direction, it feels more like placing a plaster on a wound rather than addressing the root cause of the problem.

The issue with the current bidding system lies in its focus on monetary bids, which prioritises financial capability over the true purpose of hawker centres: serving affordable, high-quality food to the community.

Even with safeguards, potential hawkers who offer unique, quality dishes but lack the financial means to place competitive bids may still be excluded from the system.

Take, for example, Dunman Food Centre, where it was recently reported that a rental bid for a hawker stall was nearly $7,000. This is an extraordinary figure compared with the median hawker rent in Singapore, which is $1,250.

Such exorbitant rents are unsustainable for many hawkers and often translate to higher food prices for consumers. While NEA’s new measures aim to prevent outliers like this, the underlying flaws in the system remain.

A year ago, I wrote to the Forum urging the authorities to rethink the bidding system. My suggestion then, which remains relevant today, was to replace the current system with a fixed rent system that considers food quality and the centre’s overall food mix.


This approach would ensure a balanced variety of offerings and maintain the cultural and culinary vibrancy of hawker centres, while keeping stalls accessible to promising hawkers with limited financial resources.

The bidding system, even with adjustments, may still inadvertently foster a climate of high rents and unsustainable business models. A fixed rent system, coupled with assessments based on food quality and diversity, would align better with the original intent of hawker centres and give the community affordable and diverse food options.

It is time for a comprehensive review of the hawker stall allocation system. By moving away from a financially driven model, we can better preserve the unique cultural and social role of hawker centres in Singapore.

Martin Lee Ming Han

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Koh Poh Koon says high bids ‘not the norm’, after $10,158 bid for Marine Parade Central hawker stall​

A bid of over $10,000 was put up for this vacant stall at Marine Parade Central Market and Food Centre in a July 2024 tender.ST PHOTO: WONG YANG
Wong Yang
Dec 26, 2024

SINGAPORE – While a few stalls at popular locations have attracted high bids, with five at the Marine Parade Central hawker centre crossing $8,000, such tender prices are not the norm, said Senior Minister of State for Sustainability and the Environment Koh Poh Koon.

He was responding on Sept 9 to Mr Yip Hon Weng (Yio Chu Kang), who asked if a recent bid of over $10,000 for a stall at Marine Parade Central Market and Food Centre indicated a trend of escalating hawker stall rentals, and how this would impact food affordability for Singaporeans.

A recent bid of $10,158 for a vacant unit at Marine Parade Central Market and Food Centre had raised eyebrows among netizens in August, with some expressing concern about the impact of high stall rentals on the cost of hawker food.

Dr Koh told Parliament the median successful tender price for cooked food stalls across hawker centres was about $1,800 in 2023. About a fifth of such stalls were awarded at tender prices at or below $500 in 2023.

The median monthly rent of non-subsidised cooked food stalls across hawker centres is about $1,250, and has remained at this level since 2015, he added.

According to a tender notice in July, the bid of $10,158 was the second-highest bid for the stall at the Marine Parade Central hawker centre, after a $10,680 bid that was withdrawn. The next three highest bids ranged between $8,113 and $9,500.

Dr Koh said the recent tender for the stall was “quite competitive”, attracting more than 40 bids.

He noted that the hawker centre is very popular, as it is open for the three meals throughout the day and has good footfall. Marine Parade MRT station, which opened on June 23, has an exit that leads to the hawker centre.

A survey by the National Environment Agency (NEA) found that stall rental makes up less than 10 per cent of stallholders’ operating costs, compared with raw materials, at 56 per cent, and manpower, at 20 per cent, Dr Koh said.

Replying to Mr Yip’s question on support for small business owners and new hawkers to help them with rising stall rentals, Dr Koh said only about 4 per cent of cooked food stalls in hawker centres today are paying rent above the assessed market rent. The remaining 6,000 stallholders pay rent no higher than this value.

NEA – which runs 121 hawker centres in Singapore – has put in place measures to ensure rental prices of hawker stalls are fair and not speculative, he added.

These include disallowing subletting or assigning of hawker stalls to prevent stallholders from engaging in rent-seeking behaviour, and removing the reserve rent in the tender of vacant stalls to allow rental rates to fully reflect market conditions.

Since September 2019, operators of new hawker centres have been required to stagger rentals for the first two years of operations such that stallholders pay 80 per cent of the stall’s rental in the first year, and 90 per cent in the second year.

Dr Koh said this is to help stallholders manage their operating costs as they gradually establish a clientele in the new hawker centre.

Tendered rents are also adjusted to the market rate determined through independent professional valuation after the stallholders’ first tenancy period of three years, he noted.

Dr Koh added: “For those who have, for example, paid a very high price – $10,000, $8,000 – in their first tenancy term, this price will hold. But following their first tenancy term, that price will be adjusted to the assessed market rent, which, as I said, is about $1,200 thereabouts, so that will help to make the price more sustainable for this hawker in the longer term over the next tenancy term.”

At Marine Parade Central Market and Food Centre, a hawker who wanted to be known only as Mr Yang, 53, said his wife Yang Ailan had submitted the $10,158 bid for the vacant stall as their son, who is in his late 20s, wants to start his own cooked food business.

Mr Yang, who helps his wife run a drink stall just four units away from the vacant unit, told ST in Mandarin: “Our son works in the car industry, but he’s not sure how stable it is since the economy isn’t doing so well. So he wants to open his own stall.”

He added: “We thought this would be a good place because we’ve had a drinks stall at this hawker centre for over 10 years, it’s clean, and we are very familiar with the area.”

A 20 per cent to 30 per cent improvement in their drink stall’s business since Marine Parade MRT station opened gave his wife the push to make the bid, said Mr Yang, who added that the tender for the stall has not been awarded.

Other hawkers at the food centre were less sanguine about the prospect of opening a stall with a monthly rental of over $10,000.

Mr Remus Seow, 28, who operates a Japanese fusion food stall, said a 20 per cent increase in sales after the station’s opening lasted only a month, and business has been only marginally better since then.

He told ST: “It’s not fair for them to bid this high because people might fight to meet the price and this could push up future bids. If that happens, who is going to take over the old generation of hawkers, and keep affordable food available for Singaporeans?”

In August 2018, the issue of high tender bids for hawker stalls was also in the spotlight after a woman made a successful $10,028 bid for a stall to sell drinks at Chomp Chomp Food Centre, only to end the tenancy agreement the same day she signed it.

NEA had called the bid – the highest successful bid received up till then – an “outlier”.

Citing two studies that showed stall rentals comprised only 12 per cent of hawkers’ overall costs, and hawkers generally priced food according to what the market can bear, then Senior Minister of State for the Environment and Water Resources Amy Khor told Parliament at the time that stall rentals do not directly affect food prices.

 

[LITTLEREDDOT]

Several Parkway Parade mall tenants leave or downsize amid rising rents​

Marks & Spencer will be closing its Parkway Parade store on Feb 16 after more than two decades at the mall.ST PHOTO: JOYCE LIM
Joyce Lim and Sheo Chiong Teng
Feb 13, 2025

SINGAPORE - British retailer Marks & Spencer will be closing its Parkway Parade store on Feb 16, marking another major departure from the 42-year-old mall in Marine Parade.

Its impending closure after more than two decades at the mall comes amid rising rental costs and ongoing concerns about foot traffic among tenants at the shopping complex, which opened its doors in 1983.

At least seven other tenants have vacated in the past year, with at least one citing rental increases of up to 30 per cent, following the opening of Marine Parade MRT station on the Thomson-East Coast Line in June 2024.

These are Ole Ole, a Malay kueh stall that had been at the mall for more than 30 years; home-grown restaurant chain Putien, which closed in September 2024 after 15 years; eatery Go Noodle House; household appliance firm Dyson’s demo store; convenience store 7-Eleven; restaurant Treasures Yi Dian Xin; and Gadget Solution, which sells game consoles and mobile phone accessories.

Despite the increase in foot traffic reported to some of the retailers by the mall’s management Lendlease, they told The Straits Times they have not seen a corresponding increase in their sales.

The ongoing construction of an underground linkway to Marine Parade station from the mall’s basement, due to be completed in 2027, is also expected to affect business further, said the tenants.

Marks & Spencer, which opened its second-floor store at Parkway Parade in May 2004, told ST that its upcoming closure is part of an ongoing effort to refine its store portfolio and focus on key locations and the online business in Singapore.

Although the company did not specify how many staff would be affected, a spokesperson said: “We are committed to supporting all affected colleagues through this transition. This includes offering opportunities for redeployment to other stores or roles, where possible, as well as providing resources and assistance.”

Mr Xu Hwa Heng, 41, owner of Gadget Solution, which was on the basement level, said his rent was raised to about $14,000 – a 30 per cent hike – when his lease expired in January 2025.

After nine years of running the business at Parkway Parade, he decided to close shop, citing the unsustainable rental costs.

“Even after the MRT started operation, I didn’t see a rise in footfall. Now, with the basement entrance facing my shop closed (to facilitate the construction of the linkway), my business would have suffered. It would be hard for me to survive if I had to pay such high rent,” said Mr Xu.

Next door, Mr Tang F.Y., who runs Pavilion Optics & Contact Lens Centre, said: “Each time my lease is renewed, the rent goes up. For older businesses like mine that rely on loyal customers, a significant rent increase is a real struggle.”

Mr Tang, 69, said that since he started his business in December 1983, his rent has climbed from $3,500 a month that year to more than $15,000 now.

Responding to queries from ST, Ms Jenny Khoo, head of retail and workspace management at Lendlease, said rental adjustments take into account factors such as market demand, tenant performance and overall economic conditions.

“Responding to changing market preferences, Lendlease aims to strike a balance between supporting long-time tenants and ensuring the mall remains vibrant and competitive, with a tenant mix that caters to the evolving needs of shoppers,” she said, without confirming the extent of the rental hikes reported by tenants.

The ongoing construction of an underground linkway to Marine Parade station from the basement of the mall, due to be completed in 2027, is also expected to affect business further, said the tenants.ST PHOTO: JOYCE LIM
The Lens Men was among the first shops to open at Parkway Parade in December 1983. It moved to Block 83 Marine Parade Central, an HDB block directly opposite the mall, after Lendlease raised its rent in December 2019.

Isetan department store, which also opened its store at Parkway Parade in 1983, exited the mall in 2022, after saying that negotiations with the landlord for a further extension of the lease “did not yield a positive result”.

Nanyang Optical, located at the basement of the mall for more than 40 years, downsized to a smaller unit on the same floor, with its former corner space taken over by food outlet Beard Papa’s since June 2024.

Officially opened in 1984, Parkway Parade was one of Singapore’s first major and biggest suburban malls at the time. The integrated office and retail development has more than 250 stores located across seven levels.

The mall, a strata-titled development with multiple subsidiary proprietors, is indirectly owned by Parkway Parade Partnership (PPP), which holds 77.09 per cent of the retail strata lots. In 2023, Lendlease Global Commercial Reit (LReit) acquired a 10 per cent stake in PPP.

Income Insurance is Parkway Parade’s largest investor, with close to 50 per cent ownership of PPP.

Some shoppers have noticed a shift in the mall’s offerings.

Insurance broker Wimala Fu, who lives in Marine Parade, said Ole Ole was the “definitive Malay kueh cafe for Parkway patrons for several decades”.

Now, the shops at Parkway Parade are all generic and there is nothing special about them, he added.

“We have only Paris Baguette and Tim Hortons, neither of which has any cultural ties to the community,” said Mr Fu, referring to the South Korean cafe chain and Canadian coffee house brand, respectively.

Instead of going to the mall three or four times a week like he used to, the 43-year-old now patronises the mall just once or twice a week to buy groceries.

Ms Linda Tan, a 62-year-old retired education officer who used to frequent Parkway Parade before moving to Tampines, also noted the changes.

“I had a lot of memories here, but almost all of the older shops have closed down,” said Ms Tan.

Housewife Tara Chia, 52, said she goes to Parkway Parade at least twice a week, “mainly for grocery shopping and makan”.

“Now that there’s the Paradise group of restaurants, I go there with my family more often for our meals,” said Ms Chia.

Mr Alan Cheong, executive director of research and consultancy at Savills Singapore, said it is not uncommon for landlords to raise rents in anticipation of new amenities.

“Tenants in popular malls who have been thriving before the opening of new attractions will naturally face the potential of landlords upping their renewal rents,” said Mr Cheong.

Like the tenants at Parkway Parade, shops near the mall are also facing rent increases. Some businesses at Block 83 Marine Parade Central have also seen rental hikes of about 10 per cent, which are a challenge for smaller businesses.

The rental hikes may lead to issues in maintaining profitability for tenants. Only time will tell if the higher rents are justified, he added.

Mr Cheong pointed out that suburban mall rents remained largely flat in 2024.

He explained that with more workers returning to offices and increasing overseas travel, consumer spending in suburban malls has dropped.

For some longstanding tenants of Parkway Parade like Mr Lim Cho Kheng, owner of Princess jewellery store since 1986, the situation is uncertain.

While he has seen increased foot traffic since Marine Parade MRT station opened, he remains cautious.

“Business is just enough to get by. I hope business will improve in one or two years,” said Mr Lim, 62.

If rents rise too much when his lease expires in 2026, he may have to retire, he said.

Mr Lim believes his store’s focus on custom jewellery helps him compete with larger chain stores, but he still depends on regulars to sustain his business.

Similarly, Mr Patrick Chong, 60, owner of Yuen Loong watch store which has been at the mall since 1984, said most of his customers are regulars.

“We’re still serving the same customers. If rent continues to rise, I would have to wind up.”

 

[LITTLEREDDOT]

Cathay cinema at West Mall to close on Feb 20​

Operator mm2 Asia said in a press statement on Feb 17 that the closure is due to the expiry of its lease at West Mall.PHOTO: ST FILE

Gabrielle Andres
Feb 18, 2025

SINGAPORE – The Cathay Cineplex outlet at West Mall in Bukit Batok will close its doors on Feb 20, just eight months after the cinema chain shuttered its AMK Hub outlet.

In a Feb 17 Facebook post, Cathay Cineplexes thanked patrons for their support and said its other outlets will remain open.

Operator mm2 Asia said in a press statement on Feb 17 that the closure is due to the expiry of its lease at West Mall, and was mutually agreed on by the company and the landlord.

“This also aligns with the cinema chain’s rightsizing strategy to optimise its operational footprint,” it said. “The cinema has been undergoing the post-Covid-19 rightsizing exercise for the past two years.”

The cinema at West Mall features six halls and was previously operated by WE Cinemas. Cathay Cineplexes took over in November 2012 and reopened the multiplex in February 2013.

It will undergo reinstatement works after the closure.

Cathay Cineplexes closed its AMK Hub location in June 2024 as the mall was due for refurbishments.

With the latest closure, Cathay Cineplexes will have five outlets remaining – Causeway Point in Woodlands, Downtown East in Pasir Ris, Jem in Jurong East, Century Square in Tampines and Clementi 321 in Clementi.

On Feb 14, the cinema chain introduced a promotion for a set of vouchers.

Priced at $100, it includes 10 vouchers which will each allow the holder to redeem one standard movie ticket, one tub of popcorn and one bottle of water at any Cathay Cineplex.

The vouchers can be redeemed from Feb 21. They will be valid on any day, including the eve of public holidays and public holidays.


Earlier in February, it was reported that Cathay Cineplexes had received letters of demand from the landlords of two of its cinemas for about $2.7 million in rent, legal costs and other monies owed.

The landlords of the outlet in Century Square have asked for payment of $479,185.74 in rental arrears and other monies, as well as $893.80 in legal costs.

Meanwhile, the landlord of the chain’s cinema at Causeway Point had asked for $1,000,000 to be paid to its trustee – HSBC Institutional Trust Services – by Feb 3, and $1,203,677.85 by Feb 10. This comprises rental arrears and other monies. It must also pay $555.90 in legal fees.

In response to queries from the Singapore Exchange, mm2 Asia said in a Feb 6 filing on the bourse that it is not disputing the payment amounts, and explained that a portion of its $10.1 million cashflow has been allocated or deployed for use in other businesses within the group.

mm2 Asia said in the same statement that it “is of the opinion that it has sufficient financial resources to fulfil the claims under the letters of demand”.

It added that it is working with the landlords to resolve the issue and will work on a payment schedule. mm2 Asia also said it is looking at how it can strengthen its finances, including engaging potential investors and securing short-term loans.

 

[LITTLEREDDOT]

Rising rents lead Siglap Drive shophouse businesses to close; bakery Flor Patisserie to shut by July​

In recent months, landlords have significantly raised rents, prompting at least five tenants to move out, leaving several units vacant.ST PHOTO: BRIAN TEO
Isabelle Liew
May 26, 2025

SINGAPORE – Rental hikes at a stretch of 16 shophouses in Siglap Drive have driven at least three tenants to close down there since 2024.

Another two businesses told The Straits Times they will follow suit before the end of 2025.

One of the business owners, Ms Heidi Tan, said she did not expect the quiet enclave of private homes – which does not get high foot traffic and is a distance from the nearest MRT station – to attract such high rents.

Ms Tan, who has run cake shop Flor Patisserie there for 12 years, will move out by early July because her landlord intends to raise the monthly rent from $5,400 to $8,500 – a 57 per cent increase.

“If I were to take on $8,500, my only choice is to increase our prices, and that will only alienate my customers more. It is a lose-lose situation where the only winner is perhaps the landlord,” said Ms Tan, who took to social media in April to highlight what she called an “exorbitant” rent increase.

The post, which drew public attention and was picked up by various media outlets, highlights the situation as an example of how businesses in many areas are trying to cope with rising rents.

When ST visited the stretch of shophouses on May 16, it found six of the 16 units there vacant.


Checks with former tenants found that three of the units had closed over the past year after their rents were raised.

In one particular case, a landlord had asked for rent to be doubled from $5,000 to $10,000.

The Urban Redevelopment Authority’s (URA) Realis data shows that, in 2024, the median rent in Siglap Drive was $7,350 a month, out of four rental contracts in the area. The maximum was $10,800 and the minimum, $3,500.

Shophouse rentals in Singapore in the first quarter of 2025 inched up 0.3 per cent from the previous quarter, according to a report by real estate agency PropNex Realty in April.

District 15 – the Katong and Joo Chiat areas, which also include parts of Siglap – saw the highest rental increase of 12.2 per cent from the previous quarter.

Along the Siglap Drive stretch, the shops still in operation include bakeries, pet-related businesses, enrichment centres for children and a suitcase repair shop.

Checks with former tenants found that three of the units had closed over the past year after their rents were raised. ST PHOTO: BRIAN TEO
One business that moved out of Siglap Drive in March, after four years there, was pet supplement manufacturer Sirius Pet Biologics.

Its landlord asked for a nearly 30 per cent increase in rent – from $5,800 a month to $7,500, said Mr Antony Leo, the managing director of the home-grown company.

Mr Leo said he was taken aback by the increase, adding that the company had been looking for bigger premises to move to, and the rental rise caused it to speed up its plans.

“I don’t think the economy is doing that great to justify such a steep hike in rent, especially as it is not in a prime district,” he said.

The company is now at an industrial unit in Tai Seng, where it pays around $5,000 a month in rent.

The Siglap unit is currently listed on real estate website CommercialGuru at $8,500 a month, touted as a “prime corner shophouse”.

Another former tenant, who did not want to be identified, said his food and beverage company moved out in February 2024 after the landlord doubled the rent from $5,000 to $10,000. The unit has since been left vacant.

Pet food company Taki Pets, which has been in Siglap Drive since 2022, said it will relocate to another area “where the rental is more sustainable” later in 2025.

Its landlord had raised the rent by 69.5 per cent when it renewed its lease in 2024.

A spokesman for the company said that, despite this, it chose to renew its one-year lease as it had made substantial investments in renovating and upgrading the unit. He declined to reveal the monthly rental.

He added that the landlord cited rising mortgage costs driven by high interest rates and inflation as key factors behind the increased rent.

The upcoming closure of Flor Patisserie and Taki Pets would leave Siglap Drive with eight empty units, or half of the 16 shophouses there.

When contacted, Ms Tan’s landlord declined to comment. Attempts to contact other landlords were unsuccessful.

In the case of Flor Patisserie, Ms Tan said her rent went up after the shophouse unit changed hands.

Ms Linda Lim, a sales staff member at Flor Patisserie, serving a customer who identified herself only as Dionna, at the bakery’s Siglap Drive outlet on May 16, 2025.ST PHOTO: BRIAN TEO
According to data from URA Realis, the current owner bought the 1,840 sq ft two-storey shophouse for $3.2 million in December 2021. Comparable units were transacted at $1.75 million less than a decade earlier.

Ms Tan said the company paid $4,000 in monthly rent in 2013, and this was increased once to $4,500 over its nine years under the previous landlord.

“In April 2022, our current landlord increased our rent by 20 per cent to $5,400,” she said.

To justify the latest $8,500 rent, the landlord had also cited rising mortgage rates and said that the rental market had gone up significantly, Ms Tan noted.

Mr Nicholas Mak, chief research officer at property search portal Mogul.sg, said the rising rents in Siglap Drive could be attributed to investors buying the shophouses at high prices, and then raising rents so they can reap investment returns.

He said landlords tend to refer to benchmark transactions to derive their asking rent.

In addition, investors tend to favour shophouses as the stock of such properties is limited in Singapore, he added.

“As more corporations, deep-pocketed investors and family offices invest in commercial properties, the property rental market is no longer a level playing field. Small businesses will suffer,” Mr Mak said.

 

[LITTLEREDDOT]

Rising rents put the squeeze on small businesses in Singapore: Should the Govt do more?​

Mr Melvin Koh (left), owner of Nicher, says his rent will go up 15 per cent, while Ms Grace Huang, co-founder of Neue Fit gym, says her rent has already gone up by 57 per cent.PHOTOS: WE.ARE.NICHER/INSTAGRAM, TARYN NG
Chin Soo Fang
May 26, 2025

SINGAPORE – The clock is ticking for Nicher, a bakery serving French pastries and coffee at The Brooks, a mixed-use development near Sembawang Road.

The bakery’s owner, Mr Melvin Koh, 39, has decided to sell the business when his lease expires at the end of June.

The former pastry chef with Marina Bay Sands says his lease will go up 15 per cent from his current rental of $5,000 if he chooses to renew it, which will make running the business unsustainable.

“Rent takes up at least 50 per cent of my total operating expenses,” said Mr Koh. “Costs of ingredients and labour are also rising.”

Mr Koh, who was charged a monthly rental of $4,500 when he started his business in 2022, is just one of a number of business owners across the island who are struggling with rising rents.

The rental squeeze has driven some businesses to write publicly about their woes on social media, drawing public attention to the issue.

One such business is Flor Patisserie, a cake shop in Siglap Drive. Chef-owner Heidi Tan said the landlord is raising the rent by 57 per cent, from $5,400 to $8,500, and that she intends to move out by early July.

In an Instagram post on May 7, she had said rent was “one thing that kills”, calling on the Government to do more to support small businesses.

On May 22, The Straits Times reported that at least five shophouse businesses in Siglap Drive have closed or are about to close because of rental hikes since 2024.

Ms Grace Huang, co-founder of Neue Fit gym at Kallang Wave Mall, took to Instagram on April 30 to share her struggles with rent hikes.

The 42-year-old said the lease for her 372 sq m unit will expire in December and she fears that the rental will go up. Other sports tenants around her have faced rental increases of about 20 per cent.

Since she started the gym in 2018, her rent has gone up by about 57 per cent, including through the Covid-19 pandemic. She pays more than $20,000 monthly now.

“Rent makes up about 30 per cent of our total monthly overheads, which is a huge burden for any small business,” she said. “It’s money we could be using to grow our programmes, support our team, or improve our members’ experience.”

She employs 10 full-timers, including national athletes who have themselves trained other current and past Team Singapore representatives.

Ms Grace Huang, co-founder of Neue Fit Gym, said rent has already gone up by about 57 per cent since she started the gym in 2018. ST PHOTO: TARYN NG
“We are a sports business in a sports mall, in what’s meant to be Singapore’s sporting district – and yet, we’re struggling to feel supported,” she said, calling it disheartening.

Business owners say rising rents are choking out small businesses here which often do not have pockets as deep as chain stores and global brands, and are less able to cope with sudden hikes.

Experts ST spoke to also painted a picture of a retail environment where landlords hold most of the cards.

Ms Huang said landlords should consider tenants’ business performance, or how they contribute to the space, when deciding on their leases, and not apply the same rental models across the board.

The Government could also consider targeted rental relief or grants for certain businesses, such as those in health, sports and wellness in the sports districts, she said.

When contacted, a Kallang Wave Mall spokesperson said the current lease with Neue Fit began in 2017 and was subsequently renewed in 2022 based on “negotiated and mutually agreed rental terms and tenure”.

“For a unit above 4,000 sq ft in size, the rental rate is well within market range,” the spokesperson said, adding that formal discussions regarding future rental rates for the current unit have not started yet.

Escalating rents​

Ms Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore, said many malls are owned by real estate investment trusts (Reits) where there is little room to reduce rents or incentivise desirable brands with lower rents.

Prime city or suburban malls still enjoy high occupancies. For every space vacated by a weak operator, there will be more than one newcomer vying for that space, she said.

Shop units owned by private strata owners were probably acquired at high prices with mortgages to service. Owners facing higher interest rates will be less likely to lower their rents, she added.

She pointed out that one reason international brands can afford higher rents is that they benefit from strong supply chain networks, which bring down their costs.

According to Knight Frank Research, as at the first quarter of 2025, prime retail rents in a basket of malls within the prime central region have increased by 11.8 per cent in the post-pandemic period, while prime suburban retail rents rose by 5.8 per cent.

These gains follow a sharp drop in the pandemic years of 2020 and 2021, when prime retail rents fell by more than 20.2 per cent in the central region and by 8.7 per cent in the suburban region.

The retail sector is expected to remain challenging in 2025, with rents likely to ease and stabilise within a modest growth range of 1 per cent to 3 per cent over the course of the year, said Knight Frank head of retail Ethan Hsu.

While there have been calls for the Government to intervene to stabilise rents, Mr Hsu cautioned that intervening in market forces could lead to unintended consequences such as reduced investment in commercial property, or a decline in the quality of retail spaces due to decreased spending on maintenance.

At the moment, the Code of Conduct for Leasing of Retail Premises – which landlords must voluntarily adopt – sets out leasing principles when drawing up contracts and a framework for resolving lease disputes.

Space for government support?​

But Mr Hsu acknowledged that there could be scope for the Government to do more.

“For instance, the Government could consider managing the supply of F&B spaces within specific geographic areas to prevent market saturation and cannibalisation within a designated zone,” he said, adding that this will help food and beverage businesses survive better amid limited demand in the small local market.

Another measure that could be considered is a tax similar to the additional buyer’s stamp duty on chain F&B brands that expand too rapidly within a short period, he said. This could help moderate F&B growth to a more sustainable pace.

The Singapore Tenants United For Fairness (SGTUFF), a group of more than 600 front-line business owners across the food and beverage, retail and services sectors, said targeted regulatory mechanisms could protect the viability of small businesses while balancing the interests of investors.

Unregulated rent increases contribute to inflationary pressures, pushing up business costs and consumer prices, said SGTUFF in a social media post on May 2.

The group argued for some form of rental regulation, including a tiered rent cap system based on attributes such as property size and location, and incentives for landlords who offer long-term and stable leases.

Brand strategist Debbie Yong proposed piloting rent stabilisation in selected districts earmarked for cultural and entrepreneurial preservation.

Another way is to strengthen the Code of Conduct for Leasing of Retail Premises by turning it into enforceable legislation, she said, adding that it would be a practical first step towards rebalancing the power dynamics between landlords and tenants, without compromising long-term growth.

Ms Yong added that the rise in commercial rents is having a chilling effect on creativity and innovation in the F&B and retail sectors.

“As consumers, we ultimately suffer from lack of diversity and vibrancy in our dining and retail landscape,” she said.

“That, in turn, further dampens domestic demand, creating a downward spiral that undermines the very ecosystem we’re trying to grow.”

 

[laksaboy]

Did you honestly think the PAP regime was so kind hearted to 'upgrade' hawker centres everywhere without expecting anything in return?

Don't even need to look at hawker centres. Walk the HDB heartlands, and see what happens to the shop rentals after a HDB upgrading, or even a simple flat paintjob.

And that's why there is a proliferation of tuition centres and massage shops in the heartlands. This is not an accident.

 

[Sustanon]

View attachment 221142


View attachment 221143

one look can easily see this Amy is stupid beyond any words can describe......

 

[congo9]

Did you honestly think the PAP regime was so kind hearted to 'upgrade' hawker centres everywhere without expecting anything in return?

Don't even need to look at hawker centres. Walk the HDB heartlands, and see what happens to the shop rentals after a HDB upgrading, or even a simple flat paintjob.

And that's why there is a proliferation of tuition centres and massage shops in the heartlands. This is not an accident.

it's planned.
Only shop or business which has high profit margin can survive.

 

[laksaboy]

it's planned.
Only shop or business which has high profit margin can survive.

High, inelastic demand.

Also, concerning the proliferation of tuition centres, it might be planned in collaboration with the MOE.

 

[bobby]

If you renting from a new owner who just paid very high current prices for that property…very likely your rent will also sky rocket to reflect the return of investment for the new owner.

Only the lucky few who are still renting from the same owners since 1990 and not realised that the new rental market….the recent still observing smaller increments yearly.