Written Answer by Ministry of National Development on shops and businesses in HDB heartlands
Mar 14, 2016
Ms Tin Pei Ling: To ask the Minister for National Development
(a) what is the Ministry's assessment of the long term viability of shops and businesses in HDB heartlands; and
(b) if rents can be maintained for shops and businesses in mature and aged HDB estates during tenancy renewal.
Answer:
HDB shops are an integral part of public housing estates. They play an important role in serving the needs of residents by providing convenient access to various goods and services.
The last published Business Expectations Survey of HDB shopkeepers in 2013 found that more than 8 in 10 shopkeepers intended to continue with their business in the next 5 years. This proportion has also been on the rise since 2007, suggesting a relatively positive business outlook. The Revitalisation of Shops or ROS scheme was also introduced since 2007 to help enhance the vibrancy and improve the competitiveness of HDB shops.
HDB ensures that the rents of HDB shops are determined fairly. For new shops, the rent for the first tenancy is determined through open bidding by shopkeepers. At tenancy renewal, the rent is adjusted to the prevailing market rent. The market rents are assessed by licensed valuers, taking into account recent lettings of comparable premises in the vicinity. Adjustments are also made for the location, size and age of the premises, among other factors.
HDB also allows flexibility in tenancy periods of between 1 and 3 years. Tenants who prefer more certainty can opt for a 2- or 3-year tenancy. HDB also has in place assistance measures to stagger rental increases.