Rentals for hawker stalls cheaper now
Singapore, March 15, 2013
SINGAPORE - Hawker stalls have become cheaper to rent following a policy change in March last year, said Environment and Water Resources Minister Vivian Balakrishnan yesterday. Previously, those who bid for a stall at a food centre had to pay a minimum price set by the National Environment Agency (NEA).
But this requirement was scrapped last year in a move to lower costs for would-be hawkers. "This has generally led to falling tender prices," said Dr Balakrishnan.
Between March and December last year, more than half of the 282 stalls put up for tender were snapped up at prices below the previous minimum rents for those stalls, according to NEA figures.
One stallholder put in a rental bid of $20 a month for a cooked food stall - and got it.
The stalls in the more popular food centres, however, got bids of up to $4,200 a month in rent.
Three-quarters of the 282 stalls had been vacant for more than three months.
Some of Singapore's long-time hawkers were also assured yesterday that their rents will not soar.
Almost 2,000 of them had bought 20-year leases on their stalls between 1994 and 1997. Some said they feared that when the leases expire between next year and 2017, they would face much higher market rents. But Dr Balakrishnan said those who were on a subsidised rent scheme before they bought their stalls will be put on the scheme again.
He also gave an update on the 10 new hawker centres to be built by the Government in the next five years.
Five of them - including one in Yishun and another in Bukit Panjang - will be ready by 2016.
When they are completed, the minister said rents will fall. He said: "Increasing supply will exert downward pressure on rents in hawker centres and other food outlets."
Dr Balakrishnan also disclosed that social enterprise NTUC Foodfare will manage Bukit Panjang's new hawker centre because it was the only group with enough experience when it was appointed in June last year.
But he added: "I look forward, now that we have at least another nine hawker centres in the pipeline, to seeing who else puts up their hand and enters this field."
Separately, Second Minister for the Environment and Water Resources Grace Fu announced a new requirement for caterers, who must submit food safety management plans to the NEA from June next year.
Last year, caterers had the highest rate of food poisoning, with 19.3 incidents per 1,000 outlets reported. In contrast, food retail outlets licensed by the NEA had only 0.8 incidents per 1,000 outlets over the past three years.
SINGAPORE - Hawker stalls have become cheaper to rent following a policy change in March last year, said Environment and Water Resources Minister Vivian Balakrishnan yesterday. Previously, those who bid for a stall at a food centre had to pay a minimum price set by the National Environment Agency (NEA).
But this requirement was scrapped last year in a move to lower costs for would-be hawkers. "This has generally led to falling tender prices," said Dr Balakrishnan.
Between March and December last year, more than half of the 282 stalls put up for tender were snapped up at prices below the previous minimum rents for those stalls, according to NEA figures.
One stallholder put in a rental bid of $20 a month for a cooked food stall - and got it.
The stalls in the more popular food centres, however, got bids of up to $4,200 a month in rent.
Three-quarters of the 282 stalls had been vacant for more than three months.
Some of Singapore's long-time hawkers were also assured yesterday that their rents will not soar.
Almost 2,000 of them had bought 20-year leases on their stalls between 1994 and 1997. Some said they feared that when the leases expire between next year and 2017, they would face much higher market rents. But Dr Balakrishnan said those who were on a subsidised rent scheme before they bought their stalls will be put on the scheme again.
He also gave an update on the 10 new hawker centres to be built by the Government in the next five years.
Five of them - including one in Yishun and another in Bukit Panjang - will be ready by 2016.
When they are completed, the minister said rents will fall. He said: "Increasing supply will exert downward pressure on rents in hawker centres and other food outlets."
Dr Balakrishnan also disclosed that social enterprise NTUC Foodfare will manage Bukit Panjang's new hawker centre because it was the only group with enough experience when it was appointed in June last year.
But he added: "I look forward, now that we have at least another nine hawker centres in the pipeline, to seeing who else puts up their hand and enters this field."
Separately, Second Minister for the Environment and Water Resources Grace Fu announced a new requirement for caterers, who must submit food safety management plans to the NEA from June next year.
Last year, caterers had the highest rate of food poisoning, with 19.3 incidents per 1,000 outlets reported. In contrast, food retail outlets licensed by the NEA had only 0.8 incidents per 1,000 outlets over the past three years.
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