Written Answer by Ministry of National Development on reinstatement of HDB commercial units

Nov 4, 2019

Mr Leon Perera: To ask the Minister for National Development whether the Government will review the operation of reinstatement clauses for HDB commercial leases with a view to (i) requiring some cost sharing for reinstatement between outbound and inbound tenants and (ii) requiring reinstatement to be done only when there is an inbound tenant so as to better utilise existing structures and reduce the cost and environmental impact of wholesale reinstatement of premises.

Answer:

HDB’s tenancy agreements require outgoing tenants to reinstate the premises before returning the premises to HDB, as all of these units will be released back to the market and taken up by new tenants. So the reinstatement allows the incoming tenants to take over the premises quickly, and gives them the flexibility to renovate the shop space based on their unique needs and requirements.  

Nonetheless, to reduce wastage and costs, HDB is prepared and has allowed outgoing tenants to retain fixtures and fittings which are (i) in good and tenantable condition; (ii) approved by the relevant authorities; and (iii) deemed to be of use to the next tenant. Generally, these include common fixtures and fittings, such as floor tiles, power points, and toilet fittings and fixtures.