Stallholders Departing Amid Steep Rent Increases
A coffeeshop located at Block 201 Tampines Street 21 has been sold for a staggering S$41.6 million, setting a new record for such sales. The transaction was registered with a caveat in April and is expected to conclude in July. A caveat, as defined by PropertyGuru, serves as a legal tool to protect buyers during the purchase process, ensuring their interests are safeguarded by the Urban Redevelopment Authority (URA).
The coffeeshop, which spans 604sqm (6501.4sqft) and includes 18 stalls, is the largest of its kind on Tampines Street 21. The Singapore Land Authority (SLA) indicates that the property has 76 years remaining on its lease. At S$6,964 per square foot (psf), the price is comparable to retail spaces in Far East Plaza and Lucky Plaza, according to data from URA and real estate firm ERA. Recent data for the first half of the year shows that shop space transactions ranged from S$4,000 to S$8,000 psf.
This sale surpasses the previous record set in 2015, when a coffeeshop at Block 155 Bukit Batok Street 11 was sold for S$31 million.
Rising Rental Costs Prompt Stallholders to Leave
Since the change of ownership two months ago, stallholders have reported significant increases in their rent. One hawker, who has been operating in the coffeeshop for 23 years, explained that the previous landlord had kept rental increases modest. However, the new landlord raised the rent from S$6,000 to S$10,000, excluding additional fees. After lengthy negotiations, the hawker managed to reduce the rent to S$9,000 but still finds it unaffordable. She stated that if conditions don’t improve over the next six months, she may be forced to close her business.
Several other stallholders have made the difficult decision to leave due to the soaring rents, citing financial strain caused by the drastic increases.
