Rental renewal policy for hawkers to be revised to discourage overly high tender bids

HOW IT WORKS

Prior to the start of the lease renewal process, or after the first three-year term of the tendered stall rentals, the tendered kiosk rentals were adjusted to the assessed market rent.

According to NEA, the lease for these hawker stalls will now be adjusted downward by 50 % of the distinction between their tendered lease and assessed market rent for the next tenancy term.

For example, if a stall properly bids for a stall at S$ 5, 000, they may pay that amount for the first three years.

If they decide to renew their lease for a second term, they will therefore pay S$ 3, 000 in book under the revised system.

After renewing their lease from their seventh year, or their fourth term, they will be responsible for paying the assessed market book of S$ 1, 000.

Since 2019, the middle assessed market rent for non-subsidized industry and fried food stalls has remained at about S$ 320 and S$ 1, 200 per month, both, according to NEA in a briefing on Monday.

According to the organization, annual assessed market rent is taken into account based on factors like sales, place, government regulations that apply to hawker centers, and comparisons with comparable hawker centers. &nbsp,

Stallholders whose tendered prices are lower than the assessed marketplace rent will continue to discover their stall rent increased, according to NEA, noting that the government has moderated this and has not increased the cost per rental expression by S$ 300 in recent years.

These adjustments to the scheme may encourage “more reasonable” buying behaviour, added NEA.

Dr. Koh, speaking to reporters on Monday, said that about 4 % of all the proposals NEA receives are higher bids.

Of the powerful bids, 44 per cent are paying below the assessed market rent, while about 56 per share are paying just above the assessed business book, he said, adding the middle book is about S$ 1, 800.

” I do n’t think these measures will hurt those who are bidding high because if you actually can bid in a way that you think is financially viable for your own business, then the hawkers should take that into account when calculating the cost upfront,” he said.

According to NEA, the median barn delicate price for fried food stalls in 2023 was about S$ 1,800, with one in five stalls being awarded at tender prices of or below S$ 500 that year.

Median barn book for non-subsidised prepared food kiosks has remained fairly constant at about S$ 1, 250 for the past 10 years, NEA added.

From 2025, NEA will provide more data and online business expense estimators to assist potential bidders in making better cost and revenue estimates.

Bids can access data on the five highest sensitive bids that were received for that stall during the previous five exercises as well as ultimate tender results from previous exercises at the moment. Resources on tendering for a stall barn, such as posters and FAQs, are also available. &nbsp,

About 200 booths are put up for each delicate training.