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Coffeeshop Chit Chat - hawker stall rentals hike explained</TD><TD id=msgunetc noWrap align=right>
Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE border=0 cellSpacing=0 cellPadding=0><TBODY><TR class=msghead><TD class=msgF width="1%" noWrap align=right>From: </TD><TD class=msgFname width="68%" noWrap>ficklebug <NOBR>
</NOBR> </TD><TD class=msgDate width="30%" noWrap align=right>12:19 am </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 5) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>19583.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>LIN YANQIN - [email protected]
WITH notices that their rentals would be doubled from $1000 to $2000 a month this year, some hawkers are going to find it hard to cope with the higher rents.
This prompted Non-Constituency Member of Parliament Sylvia Lim to ask what factors were taken into account in the market valuation of hawker stalls to justify rental hikes.
Moreover, she asked, why was the Government choosing to raise rents during an economic downturn, and could such increases have been done gradually or deferred?
Senior Parliamentary Secretary for the Environment and Water Resources Amy Khor replied that market rents for non-subsidised cooked food stalls are done by a professional valuerand that such rentals are generally lower than those in private food courts to keep cooked food prices affordable.
The quantum of increase could depend on the reason for the rental revision. "Was it due to the expiration of the lease renewal? Or is it due to an assignment from a subsidised stall owner to a non-subsidised stall owner, in which case the quantum will be higher." Dr Khor said.
She added that Ms Lim could provide more information about the stall in question to the National Environment Agency for a detailed explanation.
Also, rental revisions of these cooked food stalls did not necessarily imply rental increases, Dr Khor said.
In the rental revisions for about 150 stalls in the first half of the year, rentals for nearly half the stalls were unchanged, while another 18 per cent saw a rental reduction.
And to cushion the effects of the downturn, all stall owners paying market rent have been given a 15 per cent rental rebate for this year. "With this rebate, the proportion of stalls that actually experienced rental increase is 20 per cent, and the median rental increase dropped from some 20 per cent to 11 per cent," said Dr Khor.
As for whether the rise in rentals will ultimately mean higher food prices, Dr Khor said factors like the cost of utilities and raw materials also affect prices. <<????
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WITH notices that their rentals would be doubled from $1000 to $2000 a month this year, some hawkers are going to find it hard to cope with the higher rents.
This prompted Non-Constituency Member of Parliament Sylvia Lim to ask what factors were taken into account in the market valuation of hawker stalls to justify rental hikes.
Moreover, she asked, why was the Government choosing to raise rents during an economic downturn, and could such increases have been done gradually or deferred?
Senior Parliamentary Secretary for the Environment and Water Resources Amy Khor replied that market rents for non-subsidised cooked food stalls are done by a professional valuerand that such rentals are generally lower than those in private food courts to keep cooked food prices affordable.
The quantum of increase could depend on the reason for the rental revision. "Was it due to the expiration of the lease renewal? Or is it due to an assignment from a subsidised stall owner to a non-subsidised stall owner, in which case the quantum will be higher." Dr Khor said.
She added that Ms Lim could provide more information about the stall in question to the National Environment Agency for a detailed explanation.
Also, rental revisions of these cooked food stalls did not necessarily imply rental increases, Dr Khor said.
In the rental revisions for about 150 stalls in the first half of the year, rentals for nearly half the stalls were unchanged, while another 18 per cent saw a rental reduction.
And to cushion the effects of the downturn, all stall owners paying market rent have been given a 15 per cent rental rebate for this year. "With this rebate, the proportion of stalls that actually experienced rental increase is 20 per cent, and the median rental increase dropped from some 20 per cent to 11 per cent," said Dr Khor.
As for whether the rise in rentals will ultimately mean higher food prices, Dr Khor said factors like the cost of utilities and raw materials also affect prices. <<????
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