MSE: No escalating trend in hawker rents after S$8K Marine Parade Central Hawker Centre bid

SINGAPORE: The Ministry of Sustainability and the Environment (MSE) has clarified that recent high bids for a cooked food stall at Marine Parade Central Hawker Centre, which exceeded S$8,000, do not signal an escalating trend of hawker rents.

MSE noted that rental costs remain affordable.

In a written response to parliamentary questions, Koh Poh Koon, Senior Minister of State for Sustainability and the Environment, addressed concerns about escalating rents.

According to the Singapore Business Review, he explained that the tender attracted more than 40 bids due to the centre’s prime location.

The Marine Parade Central Hawker Centre benefits from significant foot traffic, operating continuously for three meals a day, and its proximity to a new MRT station and ongoing local developments.

Mr Koh noted that the high bids reflect the centre’s popularity rather than a broader trend of increasing rents. He said that when vendors submit bids for a stall at the hawker centre, they consider several important factors related to their business.

These include the profile of potential customers, the foot traffic the location receives, how many people are expected to visit, and the hours the stall will operate. “NEA [National Environment Agency] does not set any reserve rent or minimum bid price for these tenders,” he added.

Despite some notable high bids, the average tender price for cooked food stalls remains relatively low. Mr Koh said the median successful tender price was around S$1,800 in 2023, with nearly 20% of stalls being awarded for less than S$500 last year.

Rental costs account for less than 10% of stallholders’ total operating expenses.

To maintain affordable rents, MSE has implemented several measures. These include not setting reserve rents for tenders, banning subletting, and adjusting rents based on market evaluations.

As a result, the median monthly rent for non-subsidised cooked food stalls has remained stable at around S$1,250 since 2015. /TISG

Read also: Marine Parade hawker places record S$10K bid for stall as she believes it’s a worthwhile investment, but other hawkers disagree

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