SINGAPORE: A hawker has made a bold move that’s turning heads across Singapore. Ms Yang Ailan, a seasoned operator of a drink stall in the area, has submitted a bid of over S$10,000 (US$7,600) for a vacant stall in the Marine Parade Central Market and Food Centre.
This bid, reported to be the highest in the last six years, has sparked a flurry of interest and debate about the value of prime hawker real estate in the city-state.
Hawker bids
Ms Yang, who has been running her drink stall for over a decade, made the second-highest bid of S$10,158 for the coveted unit. Her bid was just shy of the top bid of S$10,680, which was later withdrawn.
The stall at Block 84 Marine Parade Central received three other competitive bids ranging from S$8,113 to S$9,500, highlighting the intense competition for hawker spaces in this sought-after location.
The National Environment Agency (NEA) oversees the management of all 120 hawker centres in Singapore and their 14,000 stalls and has not officially confirmed the record bid.
However, the tender notice in July listed the five highest bids, indicating the fierce demand for stalls in this popular food centre.
Vacant stalls in NEA-managed hawker centres, including the one in Marine Parade, are rented out through monthly tenders. Successful bidders commit to paying the tendered rent for the first three years of their lease, after which the rent is adjusted to reflect the market rate.
This adjustment is based on an independent professional valuation considering footfall, stall size, and current market conditions. If the initial rent is above the market rate, it will be reduced; if it is below, it will be increased accordingly.
The Marine Parade stall in question is zoned for various food offerings, including cooked food, halal cooked food, Indian cuisine, drinks, and cut fruits.
The tender results have yet to be announced, and while the NEA evaluates all bids, it reserves the right to reject any bid, even the highest, if it deems necessary.
Hawker business expansion is for her son
When CNA visited Ms Yang, a 51-year-old Singaporean, she confided that she is set on expanding her family’s hawker business. She hopes to pass the new stall to her son, who has shown interest in the trade.
Although the family has not decided on the exact menu, Ms Yang believes that the bid of S$10,000 is justified by the prime location and increased footfall in the area.
“Everything in Marine Parade is ‘expensive’, from home prices to shop rentals,” Ms Yang explained in Mandarin to CNA during the interview. She also noted that the location of this stall is superior to another in the same hawker centre that was rented out for S$6,800 last September.
The opening of the Marine Parade MRT station on June 23 has further boosted the centre’s footfall by up to 20%, according to Ms Yang, and the area’s popularity with tourists adds to its appeal.
Skeptical hawkers
Despite Ms Yang’s optimism, other hawkers in the centre have expressed doubts about the stall’s worth at a monthly rent of S$10,000.
Veteran hawker Mr Vijai Singh, who has been selling drinks since 1976, reminisced about the 1980s when business was so good that even a rent of S$6,000 was considered too high.
He lamented the decrease in customer traffic, attributing it to the proliferation of shopping malls in the area, including the nearby Parkway Parade.
Mdm Lai, a roast duck seller with three decades of experience, echoed Mr Vijai’s concerns, stating that business has not improved significantly and that the current footfall would not cover such a high rental.
Both hawkers also pointed out that rising costs would necessitate higher food prices, potentially deterring customers.
The range of tendered bids for stalls in the hawker centre between January 2018 and May this year varied widely, from as low as S$313 to nearly S$7,000, according to NEA’s tender notices.
This disparity underscores the diverse valuation of hawker spaces and the challenges hawkers face in maintaining profitability amidst rising costs and changing market dynamics.
As the tender results await announcement, Ms Yang’s record bid is a testament to her faith in the Marine Parade market’s potential.
Whether this bold investment will pay off remains to be seen, but it undoubtedly adds an exciting chapter to the vibrant story of Singapore’s hawker culture.