Koh Poh Koon: High tender prices 'not the norm', despite Marine Parade hawker stall record-bid
Senior Minister of State for Sustainability and the Environment Dr. Koh Poh Koon clarified in Parliament that high tender prices for hawker stalls are "not the norm," noting that the median rent remains around S$1,250 and has been stable since 2015. He was responding to MP Yip Hon Weng's concerns about a recent record-breaking rent exceeding S$10,000.
SINGAPORE: Senior Minister of State for Sustainability and the Environment Dr Koh Poh Koon, clarified that high tender prices for hawker stalls are “not the norm”, emphasising that the median rent remains around S$1,250 and has been stable since 2015.
During Monday's parliamentary sitting, Dr Koh responded to a question from Yio Chu Kang SMC MP, Mr Yip Hon Weng, who raised concerns over a recent record-breaking hawker stall rent exceeding S$10,000 per month.
The PAP MP asked whether this indicates a trend of rising hawker stall rentals and what impact it could have on food affordability and accessibility for Singaporeans.
In July, a bid of S$10,158 was submitted for a vacant stall at Marine Parade Central Market and Food Centre, the second-highest for the unit and reportedly the highest bid for a hawker stall in six years.
Of the top five bids for the Marine Parade stall, the highest bid of S$10,680 was withdrawn, with three others exceeding S$8,000.
Dr Koh told the House that while "a few stalls at popular locations" have seen high bids, such prices are "not the norm."
He noted that the median successful tender price for cooked food stalls across hawker centres was about S$1,800 in 2023, with one in five stalls awarded at or below S$500.
He added that the National Environment Agency (NEA), which manages all 120 hawker centres with over 14,000 stalls, found in a survey that rental costs account for less than 10% of stallholders' operating expenses, while raw materials and manpower make up 56% and 20%, respectively.
To moderate rents, Dr Koh highlighted that NEA does not set a reserve rent for tenders and prohibits subletting.
After the first three years of tenancy, rents are adjusted to reflect market rates determined by independent valuation.
"As a result of the various measures, the median monthly rent of a non-subsidised cooked food stall across our hawker centres is about S$1,250, and it has remained at this level since 2015," said Dr Koh.
He added that the Marine Parade stall attracting the record bid received more than 40 competitive bids, as it is a popular location, open for three meals daily, and benefited from the recent opening of the Marine Parade MRT station.
Mr Yip further asked how the government assesses the impact of rising stall rentals on small business owners and aspiring hawkers, and what support is provided.
Dr. Koh reiterated that subletting and rent-seeking behavior are prohibited, noting that only about 4% of cooked food stalls pay rent above the assessed market rate. For over 6,000 stallholders, rent is at or below market rates.
He also explained that for new hawker centres under the socially-conscious enterprise model, NEA evaluates tender proposals holistically, considering overall costs for hawkers.
Successful tenderers must maintain the same rental rates for the entire tenancy term, providing cost certainty for stallholders.
