REACH (Telegram) 77 - What are your views on the retail rental rates in Singapore? What more can be done to support small businesses with rental costs while balancing the interests of property owners?
(SK)
28 May 2025 (10am - 7pm)
REACH (Telegram)
REACH Singapore, [28/5/2025 9:46 am]
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REACH Singapore, [28/5/2025 10:01 am]
π’ Topic π’
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. 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. 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.
π¬ What are your views on the retail rental rates in Singapore? What more can be done to support small businesses with rental costs while balancing the interests of property owners?
π 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. She added that shop units owned by private strata owners were probably acquired at high prices with mortgages to service and owners facing higher interest rates will be less likely to lower their rents.
π Power dynamics between landlords and tenants:
Experts ST spoke to painted a picture of a retail environment where landlords hold most of the cards. Ms Grace Huang, co-founder of Neue Fit gym at Kallang Wave Mall, said that since she started the gym in 2018, her rent has gone up by about 57 per cent. When contacted, a Kallang Wave Mall spokesperson said that the rental rate for a unit of that size was well within market range. Singapore Tenants United For Fairness (SGTUFF) brand strategist Debbie Yong also added that the Government could strengthen the Code of Conduct for Leasing of Retail Premises by turning it into enforceable legislation as a practical first step towards rebalancing the power dynamics between landlords and tenants
π Space for Government support:
Head of Retail at Knight Frank Research, Ethan Hsu, acknowledged that there could be scope for the Government to do more. He said that the Government could consider managing the supply of F&B spaces within specific geographic areas to help businesses survive better amid limited demand or that they could consider implementing a tax similar to the additional buyer’s stamp duty on chain F&B brands to help moderate F&B growth to a more sustainable pace. SGTUFF also 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.
However, Mr Hsu also 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.
π https://www.straitstimes.com/singapore/rising-rents-put-the-squeeze-on-small-businesses-should-the-government-do-more
----
365, [28/5/2025 10:13 am]
Free market, willing buyer willing seller. If the price is too high, naturally no one will rent it and the asking rent will be lowered.
If really landlords can arbitrarily charge whatever they want and get it, then why not escalate 10x or 100x of what it is currently? Because there's no market for it.
So it's really a case of individual tenants unable to cope with the rent, because they aren't getting enough gross profit to pay for it. Whereas other tenants are able to manage, and thus the unit is still successfully rented out.
G, [28/5/2025 10:55 am]
“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.”
this above is comic relief.
“…reduced investment in commercial properties” or “decline in the quality of retail spaces due to decreased spending on maintenance”
mind boggling, what is Mr Hsu smoking? I also want to smoke the same.
the better one is yet to be, the second paragraph above “_Code of Conduct for Leasing of Retail Premises – which landlords *must voluntarily* adopt_”
so is it voluntary or compulsory? … and the failure to comply? what teeth does the Code (it’s from an Act) have?
if I’m not wrong, it simply renders the offending clause “void”. how much teeth is that?
G, [28/5/2025 10:57 am]
go and read the Act that made this creature.
“_by mutual agreement_”, parties can deviate from the code.
just indulge me, think about the power disparity between the landlord and tenant, who has sunk cost in the form of fixtures and equipment.
the landlord has a legal team and 200 pages of paperwork to solicit your ‘mutual agreement’, 60 days before your lease expires and you go find somewhere else.
G, [28/5/2025 11:03 am]
Power dynamics are skewed too much on favour of the REITs
And with this, it's too convenient to attribute to "market forces".. more like pressure to service the EPS for REIT holders
G, [28/5/2025 11:07 am]
Nowadays as a tenant need to be fluent in contact laws π
365, [28/5/2025 11:08 am]
Doesn't matter how much power they hold, they still have to charge rent according to market demands right? If they really are charging too high, then naturally there'll be no tenants, but we are still seeing tenants around, and even new tenants occupying spaces from those who have failed.
Joomua Tng, [28/5/2025 11:11 am]
guys..
this is something beyond me.
any professional can explain why the rent cannot be lowered?
and based on what algorithm they calculate the rent?
I seen mall or building rather have their space empty than lowering the rent so that it is populated with shops or restaurants or cafe.
is it not better to have the space rented out with lower rent to tenants than to leave it empty?
or is it the rent is high enough that it is more profitable to rent to one or two businesses and leave a few space left empty?
365, [28/5/2025 11:16 am]
Prospective tenants. Their own calculation tells them that it is more beneficial to give up a few months of rent, because they can find someone willing to pay more, but just needed some time.
If market rate is 10k, now you only got someone willing to pay 7k, you estimate you need maybe 2 months to find a tenant willing to pay 10k, so you give up 2 months of rent for 14k total, and earn back 3k per month more, so after 5 months you would have brought in more income.
Similar to all other products, as the consumer, if you're unsatisfied with the price, you are allowed to walk away. Your personal circumstances is not the concern of the seller. This is a business, not a charity.
Joomua Tng, [28/5/2025 11:17 am]
ok..
no wonder i seen spaces left empty for years, almost decade.
365, [28/5/2025 11:20 am]
Could be just those places are so bad that no one is interested in them, or the landlord overestimates their capabilities to find a tenant.
365, [28/5/2025 11:22 am]
Or the ones in charge just simply don't care anymore, because it doesn't cost them much, and they just want to wait for another buyer to buy out the whole place. A lot of possible reasonings.
Joomua Tng, [28/5/2025 11:25 am]
there is a red star chicken rice restaurant near selegie road.
it has been there for decades. they move out of the building when the building went through renovation.
then the red Star did not go back to the building anymore.
before renovation the shops were fully rented out
but after renovation the shops are all left empty for almost a decade.
Joomua Tng, [28/5/2025 11:28 am]
wondering what sort of other business so good for the corporate owner of the building does that the renovated spaces left empty for almost a decade?
previously it was populated with bakery, restaurants (thai, mala, art friend, etc) now it is left empty
365, [28/5/2025 11:32 am]
Only the ones in charge can give you the exact reason, others can only speculate.
Possible reasons: value proposition changed, is there another competing mall nearby that has a better location and/or amenities? Maybe the amount of space they can rent out compared to overall space is too little, so the rent received cannot cover cost for utilities, maintenance and upkeep? If they can only rent out 1 unit, then they need to keep escalators, lift operational, hire cleaners and security, etc...
Nicholas, [28/5/2025 11:58 am]
While I understand the stance that free market economics prevail, it is unsettling to read about retailers facing rent hikes of 50% or more, even doubling existing rent in the case of Siglap bakery on lease renewal. Surely costs shouldn't be going up so quickly in our small island nation. Where else can these retailers go? These inevitably lead to higher costs for end consumers like you and me. It also gives the sensing that the market is out of balance in favour of the well heeled landlords.
G, [28/5/2025 12:08 pm]
Well heeled temasek related REITs
not sure also.. but is HDB using REIT rental rates to determine their own rentals too in the name of "market forces"?
Wouldn't that be in accurate?
REITs are formed for the sole benefit of the shareholder and seeks to prioritise maximising shareholder returns..
and HDB mission is not maximising shareholder returns. But if HDB is using REITs rental rates as a gauge of "market rate" wouldn't be contrary to HDB's mission?
365, [28/5/2025 12:08 pm]
If organization A charges too high of a price, then consumers can opt out of buying, leading to organization A possibly dropping out of renting. If organization B picks up the rent and does the same, then the same fate will befall B. But if B can charge lower prices and maintain a profit margin to pay rent, then business as usual.
If B is unable to sustain the rent as well (and let's assume no organization can sustain it) then the rent will be lowered until an acceptable rate, and this is the market.
The illusion is thinking Singaporeans are poor, when so many of them are spending lavishly, whilst also complaining. Time and again, I've seen people earning less than me, yet very willing to spend more than me on wants. That's how the market works then, willing buyer, willing seller.
Of course there are exception cases as mentioned in previous discussions.
365, [28/5/2025 12:12 pm]
Lower rental rates is like providing subsidies on rental, it has to be paid out from somewhere, which is taxpayer money.
Not saying that they should follow market rate completely, but they need to balance the market price and the reasonable amount of subsidies to provide.
How much is enough assistance without drawing too much from taxpayers.
I never research into this, but likely they will have stricter rules for tenants to make up for the subsidies.
G, [28/5/2025 12:16 pm]
More like lower rental means less impetus for REITs to raise rents and thus harming the REITs bottom lines.
All things equal, if I can set up shop at a cheaper HDB mall, why would I do it in a more expensive REIT mall? Then the REIT mall will have to lower rentals to entice more people to take up retail space.. but this will negatively impact REIT bottom lines and shareholder (temasek) returns
365, [28/5/2025 12:18 pm]
Because hdb mall might not be at a better location, or maybe hdb did place stricter conditions apart from just monetary.
365, [28/5/2025 12:19 pm]
It's similar to hawkers vs private coffee shops. Hawkers have cheaper rent, and yet there are still tenants for private coffee shops.
REACH Singapore, [28/5/2025 1:00 pm]
Dear Contributors,
We want to HEAR MORE from you!
π¬ What are your views on the retail rental rates in Singapore? What more can be done to support small businesses with rental costs while balancing the interests of property owners?
We have had good feedback from this group, and we hope that we can keep the discussion robust and active!
Thank you!
Megan π
Jun Ming, [28/5/2025 1:03 pm]
Limit rental prices
Jun Ming, [28/5/2025 1:03 pm]
Cap at certain value
Jun Ming, [28/5/2025 1:04 pm]
Limit land prices cap at certain value
μ¬μμΉκ΅¬, 첫μ¬λ π, [28/5/2025 1:09 pm]
I think this issue on rent hikes is a whole chain of domino effects right, and it starts at either land prices or the price which they bought over the building at. Frankly I don't think the government will do anything about this.
μ¬μμΉκ΅¬, 첫μ¬λ π, [28/5/2025 1:10 pm]
They wanna protect their biggest money makers the most.
365, [28/5/2025 1:12 pm]
It's the same issue with hdb again, do you want to limit resale value? Especially for those who have already bought their hdbs, is it fair to them?
Are others entitled to your service or property at an undercut price?
Joomua Tng, [28/5/2025 1:13 pm]
how to balance?
is the government going to talk to the property owners that they place their rental too high?
then at what level it is reasonable?
........
market and businesses, including property owner has no moral value (generically, not all) when it comes to money. just like what george soros said in an interview. he is here to make money, he doesn't care for whatever consequences of his action does to the society.
retail rental is like a business..how do you determine fair price in businesses like rental?
......
365, [28/5/2025 1:15 pm]
Everyone's definition of fair and reasonable is different, that's why go back to market forces.
If someone else can pay more, why are you entitled to pay less for it? Why are you entitled to have a say in someone else's property?
Khai Mun L., [28/5/2025 1:22 pm]
And if these private properties are too expensive to rent. There's always the government option of hawker centre. Though the business would need to consider their customer's budget based on location
Joomua Tng, [28/5/2025 1:24 pm]
can share link here?
i share geore soros interview YouTube link.
basicall, the rise in rental in retail in Singapore is quite similar to george soros'.
https://youtu.be/rCjkd44p_lE?si=NC-VAsjpS-sIV9bC
....
businesses has a certain degree of social responsibility. cannot just using the statement, i am here to make money, as an excuse.
businesses, including property owners, earning their money from society, thus, they too has a certain degree of social responsibility.
ultimately, whatever is happening out there it will go one cycle to impact them either for better or for worse.
......
question is.
how much should government steps in to uphold social interest to say... enough is enough.
government cannot involve too much also, as it will restrict the businesses in how they operate.
Nicholas, [28/5/2025 1:36 pm]
Has the necessary data been collected? If so, provide guide prices for different areas. This would also allow for tracking of untoward price movements and support some intervention.
RY, [28/5/2025 1:52 pm]
Retail rental mkt maybe similar to the Resale Hdb flat
Rent is a substantial overhead for any biz operation, and landlord always have the upper hand in the negotiation
I think Govt may apply their residential property strategy eg Hdb Resale into Retail Rental
If any of the pricing is hiking eg previous medical insurance premiums, govt also came in to intevene, and hence bring down our medishield premiums,
And nowsaday the premiums are quite stabilized after changes made by govt eg no more 100% deductible, cap in cancer meds claimt and etc
Similarly, the market stall rental also spiking at a time, and govt too came in and set rules of the bidding
Certainly Govt may set up a framework, to help small biz to survive and be competitive in the market
365, [28/5/2025 1:59 pm]
So there was trade offs for lowering the premium.
If there are going to limit rental rates, there would have to be trade offs in favor of the landlords as well.
I'm pretty sure there are some tenants whoay have this agreement, but it could be a much lower base rental rate, and then add on a percentage of revenue. So if tenants do badly such as during covid, they can pay less in rent. Conversely if they were to earn more, then they would have to pay more as well.
Joomua Tng, [28/5/2025 1:59 pm]
the premium rises in integrated medishield is due to the abuses of insurance claim by its client. not because insurance companies raising it for the sake of profits.
because in previous scheme, 100% of the bills is covered under integrated medishield, the clients agree too any unnecessary medical checks like mri, ct scan etc...which resulted in the premium collected by insurance companies unable to cover for the expenses in unnecessary medical checkups
it is different from the raising of rental in retail.
REACH Singapore, [28/5/2025 2:00 pm]
π’ Topic π’
Joomua Tng, [28/5/2025 2:01 pm]
the concept of that medishield scheme is good. but it opens abuses
Joomua Tng, [28/5/2025 2:06 pm]
Government should do more.
why?
the hike in retail rental is not sustainable for the retail businesses.
the property owners or management,
they care only about making money, and may not consider about the consequences it cause to the social impact and economy as a whole.
thus, Government has a duty to step up and put a stop to it before it get out of hands.
....
how to do it?
it is beyond me scopeπ
have to relying on you guys who is more professional to help suggest a solutions.
G, [28/5/2025 2:13 pm]
Why would govt put in place policies to lower rent?
REITs are big landlords, many of which have temasek as their shareholder.
Would the govt let temasek suffer in favour of singaporeans?
Khai Mun L., [28/5/2025 2:15 pm]
It's not only temasek or government as landlord. Even retail investors like use who hold reit stocks rarely want to see profits and dividends go down
Khai Mun L., [28/5/2025 2:15 pm]
*like us
365, [28/5/2025 2:17 pm]
Singaporeans and reit shareholders do not have to be mutually exclusive
Joomua Tng, [28/5/2025 2:17 pm]
if it affects the overall social N economy then Government has the duty to step in.
365, [28/5/2025 2:17 pm]
These same Singaporeans will also ask, why is it fair to punish them and their investments suddenly then?
G, [28/5/2025 2:19 pm]
It's the same tension as HDB affordable homes vs growth asset
Both are at odds with each other but it seems the posture that squeezes out more money for the organisation rather than ensuring affordability for the individual is prioritised
Joomua Tng, [28/5/2025 2:21 pm]
it is their way of saying they are here to earn money and do not care about social consequences. ..as mentioned by georgr soros.
.........
that's why government should step in and do something.
.....
just like the cleaners' salaries has been stagnant for decades...their salaries though determined by market forces, but it is still not right that their salaries remain stagnant for decades.
eventually, it was brought up to the government's attention and something is done
365, [28/5/2025 2:22 pm]
So now arises the issue of, whose yardstick do we judge by if something is right or wrong?
Joomua Tng, [28/5/2025 2:25 pm]
whoever has the might to do so. might is right. which is what happening now by the hikes in rental. the property owners exercising their might according to their legal rightπ
Jun Ming, [28/5/2025 2:30 pm]
I think there's a lemon law in Singapore right
Jun Ming, [28/5/2025 2:30 pm]
Maybe not applicable
Jun Ming, [28/5/2025 2:31 pm]
But there should have some limit when it is over price
365, [28/5/2025 2:31 pm]
Iirc lemon law is for defective goods, not really related to this
365, [28/5/2025 2:32 pm]
Then again the question is when is it considered overprice? Because some businesses can still pay for the rental, so how do you determine overprice?
Jun Ming, [28/5/2025 2:33 pm]
Percentage increase. And how does it justify the increase
Jun Ming, [28/5/2025 2:34 pm]
You say a 50% Increase of rent then why
Jun Ming, [28/5/2025 2:34 pm]
If not people can anyhow set prices
Joomua Tng, [28/5/2025 2:34 pm]
so...when the property own raises the rental, a proper justification proposal must be submitted to authority for review?
Joomua Tng, [28/5/2025 2:35 pm]
if so...very busy leh.
365, [28/5/2025 2:35 pm]
Still not really anyhow set, but maximizing the amount they can get, example they can't set 1 million per month for a small unit and expect tenants to pay for it, obviously no one will accept.
Jun Ming, [28/5/2025 2:36 pm]
But drastic increase people also cannot accept mah
365, [28/5/2025 2:37 pm]
There are ppl who can accept, that's why they can still successfully rent it out
Jun Ming, [28/5/2025 2:37 pm]
I rent you 1 year next year increase 50%
365, [28/5/2025 2:38 pm]
Basically it's about value proposition, even though rental is increased by 50%, but this rental allows them to still maintain a business, compared to no places to set a business
365, [28/5/2025 2:38 pm]
It's up to individual businesses, different businesses are competing for the same space, if A can accept but B cannot, then why is B entitled to that space and still ask for lower rent?
Jun Ming, [28/5/2025 2:39 pm]
Because B have already put in initial investment
Jun Ming, [28/5/2025 2:40 pm]
I thought Singapore like to protect businesses
Jun Ming, [28/5/2025 2:40 pm]
Is this how Singapore protect businesses
365, [28/5/2025 2:40 pm]
And if the contract ends then it ends already, there's no more agreement afterwards right? So since there's no more agreement then B no longer has any rights to the place. Of course if you're talking about raising rents which violates contract, then it's a different issue.
365, [28/5/2025 2:40 pm]
Tenants and landlords are both doing business
Jun Ming, [28/5/2025 2:42 pm]
Maybe gan kim Yong can set up another task force for small business to tackle rent issues
365, [28/5/2025 2:42 pm]
Conversely, someone can also ask what about rights to your own private property? I'm sure you also don't like the government to tell you what you can and can't do with your own property.
Jun Ming, [28/5/2025 2:43 pm]
To help to find alternative and maybe longer contracts
365, [28/5/2025 2:43 pm]
I know ppl who are upset with some stuff they can't do with hdb, so imagine if there's even more restrictions. Same thing with retail property.
365, [28/5/2025 2:43 pm]
That is for the tenants and landlords to negotiate le.
Jun Ming, [28/5/2025 2:43 pm]
Maybe a mediator
Jun Ming, [28/5/2025 2:43 pm]
For negotiation
365, [28/5/2025 2:45 pm]
I think to support businesses, some spaces can be reserved, especially heartland areas, for small businesses. The rent can be cheap, but subject to more restrictions also, maybe a pricing limit on the items you sell for the cheap rent, or maybe a cheap base rent but an add-on rent based on your revenue, so you can sustain in bad times and have more time to try out, while still giving back fairly when you have good revenue.
Joomua Tng, [28/5/2025 2:45 pm]
π mediator cannot do much also.
Jun Ming, [28/5/2025 2:45 pm]
Criminal have lawyers to negotiate sentence, maybe tenants can have someone nego with landlord
365, [28/5/2025 2:47 pm]
If small businesses want social contributions to help them survive/thrive, then I think it's fair to expect them to contribute back socially also. So ensuring they are not profiteering too much as well, or maybe a charity work and contributions requirement, etc...
Jun Ming, [28/5/2025 2:48 pm]
Can say not near to mrt, no customer flow, very ulu, please reduce price for long term business.
Jun Ming, [28/5/2025 2:49 pm]
Then small business just pay a few k for the negotiator. Somehow it also boost the economy, more jobs will be created and all sides are happy
365, [28/5/2025 2:50 pm]
All these are market factors that will play out themselves. If ulu but got other businesses interested and can make it work then how? If ulu until no profit then market forces will drive out the tenants, they have no entitlement to the private property.
Jun Ming, [28/5/2025 2:51 pm]
That's is why a negotiator job to understand the nature of the business if it is sustainable and to help clients find alternative
Jun Ming, [28/5/2025 2:52 pm]
It's like the same role as diplomat
Jun Ming, [28/5/2025 2:52 pm]
Just that smaller scale
LCL (Danny εΏ), [28/5/2025 2:54 pm]
*Intervening in the Rental Market*
1. I am a major proponent of free market economy - determine by market forces. Any intervention that interfere with free market principles will normally result in unintended consequences.
(Trump tariff war - to manipulate trade, pull manufacturing back etc - all results in adverse consequences that breach free market forces). And create a big mess in the global economy.
2. However, some recent developments sets me thinking that should our Government do something to the rental market :-
a. Rental cost is one of the major component of a business cost. I casually spoke to a few food stall owners and retailers --- and almost unanimously cited rental cost is the main killer of business when rental contract expires..
As read from the news, $5,400 to $8,500 upon renewal of rent increase is too much for retailers to absorb.
Some of my neighbourhood food stall owners also told me that when coffeeshop change hands sold to big food chain Kimly, they have no choice but to increase their food prices. Many old stall owners have to give up their food business as they cannot afford the rent.
This is similar to food court that do renovation, and all food stall operators raise their food prices after renovation.
b. Cost of living - many food stall owners and retailers cited that rental cost is their main consideration in raising food prices.
However, NEA run food stalls don't cite rental cost as their grievances and the food prices are normally lower than those run by private coffeeshop owners and food court.
c. Trump tariff war has now make external trade and external economy all the more challenging.
Hence we need to ensure our domestic economy function properly and remain healthy. More than 70% of the labour force is employed by SMEs and form a sizeable contribution to our domestic economy.
When our external economy come under stress, we cannot allow our domestic economy to falter as well. Else our Economy will enter into a recession.
That means some SMEs got to close shops, workers lose jobs.
Hence, I feel that it is necessary for the Government to intervene in the rental market to make SMEs and food stall viable, as well as to contain the Cost of Living.
In fact I have been pondering on this topic for quite some times after spoken to a few SME and food operators.
Joomua Tng, [28/5/2025 2:54 pm]
is it practical? how many of these so call negotiator should be hired? by who? government agencies?
1 negotiator to how many retail rental issues?π
Ginie/Komal ZENDORA J, [28/5/2025 2:54 pm]
Too many malls. U can see many malls empty unit.
Jun Ming, [28/5/2025 2:55 pm]
You know this can be a new industry. And this can create jobs
Ginie/Komal ZENDORA J, [28/5/2025 2:55 pm]
All this big brands come in, rent, cannot survive close down. Recently so many businesses closed down
Ginie/Komal ZENDORA J, [28/5/2025 2:56 pm]
Capitol malls, so empty, had to revamp
Ginie/Komal ZENDORA J, [28/5/2025 2:56 pm]
Same tekka mall
Jun Ming, [28/5/2025 2:56 pm]
1 property agent to how many property
1 financial advisor to how many clients
Ginie/Komal ZENDORA J, [28/5/2025 2:57 pm]
By changing look, unit not going in to get rented. May try for awhile. Realise no business close down
Joomua Tng, [28/5/2025 2:57 pm]
commission based or salary based.
financial advisor , usually insurance agent is running a self employed business....cannot be compare equally
Joomua Tng, [28/5/2025 2:58 pm]
so is property agent.
Jun Ming, [28/5/2025 2:59 pm]
Can be commission based or salary based depends on how they want the business model be
Jun Ming, [28/5/2025 2:59 pm]
Can be private business but gov needs to encourage this type of jobs lor
Joomua Tng, [28/5/2025 2:59 pm]
commission? no conflict if interest?
s
Joomua Tng, [28/5/2025 2:59 pm]
salary based...who doing the hiring?
Ginie/Komal ZENDORA J, [28/5/2025 3:00 pm]
Another thing, I have realised many malls have those small pop up vendor boxes. Or outside malls. What happens to those who pay high rents for shop space. Better close shop rent out those small spaces move around. Think they should stop pop up stalls
Jun Ming, [28/5/2025 3:00 pm]
If I know I will be the gov liao
Jun Ming, [28/5/2025 3:00 pm]
This one let gov decide since they are all elite
Jun Ming, [28/5/2025 3:01 pm]
I just give an Idea to see if it can be work
Jun Ming, [28/5/2025 3:02 pm]
Just like idk how property agent job started like the landlord can directly sell to the tenant
Jun Ming, [28/5/2025 3:04 pm]
I also don't know how financial advisor started where insurance company can just list their black and white with a customer service with ai bot to answer queries
Joomua Tng, [28/5/2025 3:07 pm]
people don't wake up and buy insurance on their own.
the myth and misconception insurance is additional expenses. instead of protection for them during u expected circumstances...
thus, insurance is sold, through insurance agent, instead of bought by client on their own initiative
Jun Ming, [28/5/2025 3:08 pm]
Just like tenants and landlords can both hire negotiator at the same time mah. Like lawyers quarrel mah.
Joomua Tng, [28/5/2025 3:09 pm]
additional cost and almost useless.
....
Jun Ming, [28/5/2025 3:10 pm]
The options can be made available. For the market to decide. I think in a way it helps small business lah. If not small business very helpless
Jun Ming, [28/5/2025 3:12 pm]
If not shop taken over by big brands then small business cannot survive. No startup in Singapore
LCL (Danny εΏ), [28/5/2025 3:12 pm]
*Adverse consequences of Rent Control for SMEs, retailers and food stalls*
But it is important to note there are adverse consequences of rent control and hence are more targeted approach will be needed to ensure unintended effects will not rear its head and impact the Economy.
Among the adverse consequences of rent control are as follows (Source:- Meta AI):-
(Note :- Economic books will also cite all these points - too lazy to memorise and regurgitate).
- Reduced Supply of Commercial Spaces: Rent control can discourage property owners from developing or maintaining commercial spaces, leading to a shortage of available spaces for retailers and food stalls.
- Inefficient Allocation of Spaces: Rent control can lead to inefficient allocation of commercial spaces, as businesses may be reluctant to move to more suitable locations due to the artificially low rents.
- Black Market Rentals: Rent control can create a black market for commercial rentals, where property owners charge higher rents under the table to make up for the controlled rents.
- Reduced Investment in Maintenance and Upgrades: Rent control can lead to reduced investment in maintenance and upgrades of commercial spaces, as property owners may not have the financial incentives to improve their properties.
- Favoritism and Discrimination: Rent control can lead to favoritism and discrimination, as property owners may choose to rent to businesses that are willing to pay higher rents under the table or have personal connections.
- Limited New Business Opportunities: Rent control can limit new business opportunities, as existing businesses may be reluctant to vacate rent-controlled spaces, making it difficult for new businesses to enter the market.
- Reduced Foot Traffic: If rent control leads to a shortage of commercial spaces, it can result in reduced foot traffic, affecting the viability of businesses in the area.
- Less Vibrant Business Environment: Rent control can lead to a less vibrant business environment, as businesses may not be able to afford to invest in their spaces or offer competitive products and services.
These adverse consequences can impact the overall health and diversity of the retail and food stall sectors.
Jun Ming, [28/5/2025 3:14 pm]
Please suggest an alternative to help small businesses. By denying one solution doesn't actually help.
Jun Ming, [28/5/2025 3:16 pm]
I have suggested a negotiator that does not control rental price directly. What else do you people suggest?
LCL (Danny εΏ), [28/5/2025 3:25 pm]
*Considerations of commercial property owners - in setting rents*
1. As we look at the pain from SMEs, retailers, food operators, we also need to stand in the shoes of the commercial property owners consideration why they keep raising the rents upon contract expiry.
a. Shop units own by private strata owners could have acquired at high prices with mortgages to service at higher interest rate - and hence less likely to lower their rents as cited in the above REACH context.
b. REITS listed in Stock Exchange need to report profits and spruce up their shares in the stock market - and hence has little incentives to lower their rents.
Hence landlords hold most of the cards in the rental market.
Joomua Tng, [28/5/2025 3:30 pm]
nice.
LCL (Danny εΏ), [28/5/2025 3:39 pm]
*How can we bring down the commercial rental market into a more manageable level - to contain business costs that translate into higher cost of living to the people*
1. It all boils down to $ and cents - that is who foot the bill of rental hike:-
a. SMEs, retailers, food operators - high rental
b. Consumers - higher food prices, goods and services prices
c. Landlords - forgo high rent at the expenses of mortgages servicing, high interest rate or profit.
d. Government - which is the taxpayers' money.
2. If we analyse carefully, high rental cost will impact any of the group a. b. or d.
Lowering rental prices will impact c.
LCL (Danny εΏ), [28/5/2025 3:45 pm]
3. So surgically, if we look at all these players objectively, if c. landlords have its way - a. SMEs, retailers, food operators will pay their nose through bleeding - SMEs close shops or consumers pay inflated prices. (Which is happening now - as we experienced).
4. If Government force c. Landlords to maintain rental control - then all the negative consequences of rent control that I highlight earlier will emerge - which is undesirable - and will impact SMEs, retailers, food operators as well as consumers.
5. If d. Government - take up the whole burden of subsidizing the high rental - taxpayers money will suffer (and all our fiscal budget surplus will be gone) - all go into the c. Landlords pocket.
365, [28/5/2025 3:50 pm]
The focus here now is on small businesses. I think can be supported through taxpayer money first, then once they take off, retrieve it back from them with some interest (doesn't have to be monetary).
Which goes back to what I have mentioned previously. Setup a system similar to hawkers, whereby it's government owned. This way the rent can be controlled at a fairly low rate, in a way subsidizing rent. However, we can then implement social requirements on the tenants for them to give back to society. Instead of suppressing others to help small businesses, we create an alternative for them.
LCL (Danny εΏ), [28/5/2025 3:58 pm]
6. So pragmatically, what will be the best way forwards?
As layman and a pragmatist, let me venture a solution for the Government consideration:-
- Make a. b. c. and d. (balance the high rental cost).
- That is SMEs, retailers, food operators, landlords, consumers and Government - work out an equation to ensure "Rental cost" are balanced - whereby each group will bear the equal burden of the rental cost - without breaching the market principles (in which property market are valued - according to demand and supply) - and hence not inheriting the worst consequences of rent control.
7. This will be a major exercise, need experienced accountants, property valuers, financial analysts to work out these equations.
8. Hopefully, upon reaching a desirable equilibrium:-
a. SMEs, retailers, food operators can survive and make profit.
b. Consumers cost of living is contained and bearable.
c. Landlords won't feel grievances by pressing their income.
d. Government taxpayers' money is managed prudently without over spending, need more tax, incur debt or digging into our reserves.
No countries have done this...
Hmm...... But I think should be workable..... Om...
REACH Singapore, [28/5/2025 4:04 pm]
π’ Topic π’
LCL (Danny εΏ), [28/5/2025 4:48 pm]
Under this equation, if property valuers determine yearly that property values has dropped, then rental prices will go down and savings shared by all 4 groups.
Conversely if property values gone up, the increase rental hike will be shared equally by the 4 groups.
So no breaches to the market principles.
But overtime, Singapore as a whole can enjoy the benefits of:-
1. SMEs reasonable rent prices.
2. Consumers reasonable cost of living
3. Landlords receive reasonable rent income
4. Government coffer reasonably prudent.
So this is an innovative solution to resolve decades' economic problem of rental hike versus rental control.
If Singapore is successful in using this solution, just like our ITM (industry transformation map) to resolve tech disruptors to business and jobs - then our solution can be "sold" to the World and enter into the Economic book.
Jun Ming, [28/5/2025 4:52 pm]
Because I feel that now a lot of the burden has pass down to small business and consumer
LCL (Danny εΏ), [28/5/2025 4:53 pm]
The proposed solution will lighten all our burden.
LCL (Danny εΏ), [28/5/2025 4:54 pm]
Anyway it is a difficult problem to solve worldwide for decades.
To date no one have a good solution.
Hanny, [28/5/2025 4:57 pm]
Gov should start managing the rental of hawker center. Remove middleman.
Jun Ming, [28/5/2025 4:59 pm]
Sometimes I like china products as it's cheap and useful. Products like xiaomi compared to Samsung.
Mixue and value$(can be misleading )compared to big brands like liho
The cost of the product really makes consumer looks for cheaper alternative and mostly from overseas. I started to buy things from taobao since COVID and online e-commerce platforms.
People have concerns that once the train to JB started to operate people may buy their products from Malaysia
LCL (Danny εΏ), [28/5/2025 5:00 pm]
CDC vouchers, SG 60 will ensure no leakages to foreign countries.
Because they can only be used in Singapore.
Jun Ming, [28/5/2025 5:01 pm]
But I only use them for essentials. And they only can use for essential
Joomua Tng, [28/5/2025 5:01 pm]
isn't hawker centre bid through NEA?
so the rental is determined by the hawker themselves who are doing the bidding.
LCL (Danny εΏ), [28/5/2025 5:03 pm]
Can buy more than essential.
Eg. Smartphone, fridge, can see doctors, pay for classes etc that accept CDC vouchers.
Jun Ming, [28/5/2025 5:03 pm]
Then kena boycott online
Jun Ming, [28/5/2025 5:05 pm]
Nowadays i buy rice online
Jun Ming, [28/5/2025 5:05 pm]
As it cheaper
Khai Mun L., [28/5/2025 5:20 pm]
Buying from online/foreign is a factor too, overseas companies could get sponsored by their governments or global companies to offer cheaper price.
Whereas sg business have to pay full price for rent, manpower, utilities. Hard to compete with big budgets from overseas
RY, [28/5/2025 5:46 pm]
Govt Role in biz market is to control b4 it spikes into "bubble" whether in sale/rental property mkt
Rem the food stall sale in hawker/mkt went so high, that the govt has to intervene ?
Similar to the resale Hdb flat/residential mkt, there was a period that it went spiking (bubble), and the govt has to implement some policies to bring down the prices
To certain point of time, when govt has to intervene the mkt, they must come in, so that the bubble wont burst ultimately
Govt may also set up some framework in retail rental mkt also, eg the rental increase by the landlord must be reasonable/viable for the biz to survive also
Considering retail biz, there is already initial reno costs that biz has to absorb b4 starting any biz
RY, [28/5/2025 6:00 pm]
In fact, with the trend of online shopping nowsaday, retail biz really suffers in recent decade, especially during the pandemic
Nowsaday, retail shopping really focusing on "experiential shopping" whereby consumer may physically try/touch the products, and also enjoy the services provided by the biz
Many Fashion brands/shops are going towards AI shopping experience
In Korea/Japan, for beauty pdts, there is even a beautician to help with the make-up as a value-added svs
For me, I may go for retail mainly for F&B, whereby I may enjoy the services and sametime savouring the fresh/hot food being served instantly
REACH Singapore, [28/5/2025 6:03 pm]
π’ Topic π’
RY, [28/5/2025 6:15 pm]
Online biz reduces operation costs eg shop renovation/rental and etc
That also explain why so many retail biz closed down in malls nowsaday, as online shopping is so common and easy just by clicking the fingers
Hence the developers/mall operators should not raise rental so high, that makes the retail operators so difficult to survive in their retail biz
Without tenants, the mall operators also lose out in rental income, isnt it ?
In order for any biz to survive, they must have regular/stable income to cover their biz overheads eg rental/labour and etc
Joomua Tng, [28/5/2025 6:17 pm]
it is a good considering of enforcing the code of conduct into legislation.
but..how to measure it?
i have no idea on how to measure whether the landlord is over pricing the rental.
on what basis and benchmark to measure from?
.........
there is tripartite on employer, employee and government agencies to mitigate and help increase the trus between employees and employers and government agencies.
........
maybe the same can be done for tentants and landlords and a government agencies to mitigate so that the landlord and tenant can reach a mutual middle ground.?
.....
not all things can be solved by pure legal issue.. though it is still a must to deter "trouble makers"
it is better that the parties involved to sit down and come to a common ground, a middle ground where both landlord and tenant can benefits.
............
i am just a taxi driver and learning trader.
only focus on driving and learning to become profitable traders.
such complex issue is beyond my income levelπ
.....
the issue of "tripartite" between tenant and landlord and gov agency is MPs' job, and paid to come out a solution.
......
RY, [28/5/2025 6:23 pm]
Further, many people are crossing the border to msia and shop/eat/play there, because it is still cheaper to spend in msia than SG
Similarly many Hongkongers are doing the same and crossing border to ShenZhen/GZ in china
HK retail also badly affected in recent years, by this shift of consumer market
LCL (Danny εΏ), [28/5/2025 6:34 pm]
My close friend comments:-
Singapore has in the past repealed control of rent act? Maybe someone can highlight what were the key considerations at that time?
My comments:-
I think should be those points about rent control that I highlighted. Rent control bad for the whole economy property market.
My close friend comments:-
Removing controls should have a natural stabilizing force.
Eg. Massive number of hdb flats is a stabilizing force for housing prices.
Although we are facing escalating prices, but compared to countries like HK, majority of Singaporeans are free from prices hikes.
Staple food for example, if gov had good stockpiling measures plus, a coop like ntuc fair price which people can turn too, rice importers can't manipulate the prices too far. Hawker stalls is another example, unfortunately at one point gov allowed the sale of stalls and hawkers instead of selling make more money thru renting out their stalls. When control of rent act was repealed, there might not be far sightedness that rental will spike.
Why allow foreigners to buy heartland coffeeshops for example.
Only very few benefited, most people suffered including customers.
We can learn from the past mistake on rent control and we won't go back and forth on the same policy mistake.
My close friend comments:-
REITs was disruptive model which tenants are held ransom and subsequently had to pass down their costs to consumers. When they are unable to, they have to close down.
Then, should there be a way to target at REITs?
My comments:-
Yes. This is the most important pain points highlighted by many people.
My close friend comments:-
Jtc should continue to be landlord for small industrial areas and light industries. Otherwise smes also mati.
Gov should be landlords to hawker centres and heartland shops. Apply strict tenant rules.
My comments:-
Hmm... Good idea.
My close friend comments:-
90s, early 2000 was the era of liberalization. Outsourcing, corporatization, privatization etc all in the name for free market and next phase of economy boom. It is good for our Economy at that time, as we are a Developing Economy and our income grow phenomenally..
And as we all know, everything has a tipping point and beyond that, it comes back to bite.
My comments:-
Yes, once we reach the tipping point, It become raw capitalism that must be managed. Else end up like Trump policies that benefits the ultra rich at the expenses of others - middle class and the poor.
My close friend comments:-
So rather than thinking in terms of rent control again, can we then ask gov to provide start up loans, lend not give.
Start ups can get loan to start and including buying a shopspace.
Their own business have to thrive. Don't put blame on rental. Must pay back like paying rental first and capital at some point in time.
If business not viable pls fold up early.
Joomua Tng, [28/5/2025 6:35 pm]
take the code of conduct for example.
the covid pandemic only starting to be over and some landlords already raising rentals.
the business didn't even improve for the tenants and recover from the crisis. is it a good condct to " kill" the gooses in order to extract more goldem eggs
Joomua Tng, [28/5/2025 6:39 pm]
not control rental.
come to a common middle ground so that both the landlord and tenant can benefit.
as for buying the space?
if business cannot be sustained, the bought space still has to be rented out...then the cycle of landlord and tenant starts all over again
REACH Singapore, [28/5/2025 6:45 pm]
Dear Contributors,
⏰ We will be closing the chat in 15 minutes ⏰
Thank you very much for being part of our Telegram chat and participating actively.
Goodnight!
Megan π
Jun Ming, [28/5/2025 6:48 pm]
I think Singapore must intervene in some ways. Might not be direct control if not small business cannot flourish and it will be flooded by big brands and overseas brands
RY, [28/5/2025 6:48 pm]
There is always pros and cons in any policy/intervention/system/rules n etc
Govt shd weigh the pros & cons/tradeoffs for any of any of their policy which they plan to implement
However, it is also the govt role not to let the "bubble burst" ultimately, as the economy maybe affected and Japan is a gd example (spiking japan rice stable food)
Balancing demand and supply in the mkt and be a watchdog/monitor the pricing sametime
Pdt/Svs shd not be "overpriced" to certain extend, otherwise it may lead to not so gd consequences later
RY, [28/5/2025 6:49 pm]
Tks Reach Team and Gd Evening Everyone
REACH Singapore, [28/5/2025 7:02 pm]
Dear Contributors
We will be closing the chat for today.
Thank you very much for being part of our Telegram chat and participating actively.
Goodnight!
Megan π
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