No escalation in hawker stall rents: MSE

Some tenders are an exception since they are in popular sites.

Following the recent tender for a cooked food stall at Marine Parade Central Hawker Centre, which attracted bids above $8,000, the Ministry of Sustainability and the Environment (MSE) has clarified that this does not signify an escalating trend and that rents remain affordable.

In a written reply to Parliamentary questions, Koh Poh Koon, senior minister of State for Sustainability and the Environment, said the concerned tender attracted over 40 bids. The competition was tight since the location was popular as it is open for three meals throughout the day and has good footfall, especially given the recent opening of a new MRT station and additional developments near the centre, he noted.

“Tenderers submit bids based on various business considerations, such as client profiles, footfall, expected patronage, and operating hours. NEA [National Environment Agency] does not set any reserve rent or minimum bid price for these tenders,” Koh said.

Despite some high-profile bids, the average tender price for cooked food stalls remains relatively affordable. The median successful tender price was about $1,800 in 2023, and nearly one in five stalls were awarded at prices below $500 last year, the official said.

Whilst rental costs represent less than 10% of stallholders' total operating costs, MSE said several measures have been implemented to maintain reasonable rental costs. These include avoiding reserve rents for tenders, preventing subletting, and regularly adjusting rents based on market valuations. 

As a result of these measures, the median monthly rent for non-subsidised cooked food stalls has remained stable at approximately $1,250 since 2015, MSE said.