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As a result of growing concerns, the government will closely monitor HDB coffee shop rents and intervene if necessary, noted National Development Minister Khaw Boon Wan.
In a written response to a question by MP Foo Mee Har on what actions the government would take to moderate prices, Mr Khaw explained that rental prices of individual stalls are negotiated between the operator and the renter, and as such the housing board does not really intervene.
“The operator has to set the stall rental price carefully to ensure good take-up rates whereas the stallholders have to ensure the rents are not too high as to render their businesses not viable.”
Of the 714 eating houses within HDB estates, 429 are sold and 285 are rented out.
“Although the transacted prices of eating houses have gone up, the average number of transactions is 33 cases per year for the past three years. They form less than eight percent of the total number of sold eating houses. With HDB constructing about 30 new eating houses currently and NEA building 10 new hawker centres, the upcoming supply of new cooked food stalls should help to keep overall stall rentals in check,” added the Minister.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg