BT : HDB clarifies stand on wet market rent hike

Business Times - 08 Apr 2010

HDB clarifies stand on wet market rent hike

IN the light of concerns about the recent rent hike at five of Sheng Siong Properties' wet markets, the Housing & Development Board (HDB) has clarified its position on the issue.

HDB says the five wet markets in question were purchased by Sheng Siong from Heeton Holdings on Jan 4. In approving the sale, HDB says it specified that the properties must continue to be operated as wet markets and made clear that any change of use has to be subjected to its approval.

HDB says it has informed Sheng Siong that these properties will remain as wet markets as there is still demand from the residents for these facilities. It also said it will not allow conversion of any of these properties to other uses, even if all the stalls are vacated.

HDB says it recognises Sheng Siong's prerogative to adjust the rent and the tenancy terms for the stallholders. Nonetheless, it advised Sheng Siong that they will face much difficulty attracting stallholders if they charge excessive rent.

Likewise, it said, the stallholders who are compelled to set high prices for their produce because of the high rent might not be able to sustain their business in the longer term.

HDB also suggested to Sheng Siong it should consider the wet markets' operation on a long-term sustainable basis when making any rental or tenancy adjustments. HDB assured the residents concerned that it will ensure their marketing needs are met.