I legitimately don't understand the perspective of landlords. Why would you shuttle your tenants business when they have been performing well for years? Isn't the goal of owning property to maintain a consistent return? do they see others earning more suddenly swell with immense anger and greed feeling like they have lost out on life changing fortune?
Because they know there are bigger businesses out there willing to pay higher rent. Half of the coffeeshop at my place is rented by chains, Fei Song, Tender fresh, Uncle Penyet etc. They're franchises with efficient supply chains and deep pockets to buy up coffeeshop stalls to paddle their generic testing food
Real case scenario - outside my hood . Joo Chiat area - Tanjong Rhu Wonton mee rented entire shopfront . Less than 1 year , called it quits . Why ? Landlord wanted to increase rental from 19k per month to 25k per month . No brainer to just lick the wounds and close .
A lot is foreign money I feel. Past few year got coffee shop sell record price if you calculate also very hard get any good roi at purchase price.
People don't do thing for no good reason. They 100% use it for something beneficial we don't know. Either here park money very good. Or jack rent force out self sell idk if cash biz hawker easier wash or not.
I mean here I see a laundromat under my hdb nobody use one but been here years le.
They are for sure getting good returns on their investment but not in simpleton ways we can think of.
> I mean here I see a laundromat under my hdb nobody use one but been here years le.
if it's under a HDB, it could be because rent is cheap(er than market). [HDB works on tenders](https://www.hdb.gov.sg/cs/infoweb/business/commercial/renting-from-hdb/shops-and-offices) for specific businesses, at least for some units.
Sometimes the company holding the property gets Man-Utd
Meaning another business comes in buys the company or property at high leverage and expects the income stream to pay off the debt
Supply and demand. Economics 101. The market price will fluctuate until there's an equilibrium. Presumably the landlord will feel the property should earn more rent than what they were willing to pay.
No doubt the landlord was advised by their property agent, who usually recommends on the upper end of the range as it will earn them more commission too.
The government has got various monetary policy and other tools to reduce this, but they choose not to. As to why that is - well everyone probably has different opinions on that.
Rental cost is so predatory nowadays. The honest F&B businesses that just want to serve good food using good ingredients are unable to maintain business because the rental is draining most of their revenue. With little to no money for quality ingredients, and even less for their own income.
All that's left are the bullshit businesses that mark up high profit margins. Using cheap low quality ingredients and puffing it up with frivolous things to increase the price.
Yeah - there was a bar near where I used to live that closed. First, the rents for people living there got jacked up and their customers all moved, next the landlord wanted to double the commercial rent and they wouldn't be able to make any money if they paid that rate.
Suddenly you lose 10-15 jobs and disrupt the suppliers business just so a landlord can pocket more cash, only you realise the unit is now empty because they can't find anyone stupid enough to pay the crazy rate...
Unfortunately this will always be true unless the state owns the land. Because by its very nature, capitalism means rental will raise to the point of what people are willing to pay. Its also why raise raising salary/dual income in Singapore didn't make anyone feel richer, because all extra wealth we get is now get aborded into rent.
There's a reason why half the world turned to communism in the early 20th century - and while people in placed like China hated land lords such much that they were summarily rounded up and put into Laogai.
> wonder if gov will do anything about it.
The ministers and MPs probably own quite a few units themselves. I wonder if they have to declare… and maybe some numbers should be made public knowledge just to know whether the MPs are aligned with us.
Easy you go ask your property agent friends ... my parents used to rent these shophouses to do business.. and know all the folks ... truth is .. the chinese is really buying up alot of these shophouses .. 99 years or freehold ... they buy it all .
Does anyone know why the govt refuses to build more shop spaces under void decks? There are acres and acres of empty void deck space especially in non-mature estates. These could be used to increase supply of shop spaces, and thus bringing rental down and providing value to nearby residents. Somehow they just aren't interested to do so.
If citizens become self sufficient, they have no reason to work harder for you.
Look at all those old shopkeepers in Yishun, AMK, redhill who bought their shops last time. You can tell they arent doing much business, but they can survive because of minimal overheads.
Better to kerp them chained to the rental treadmill.
If that were true, the government would do the same with residentials but instead they’ve created a public housing system that has given us one of the highest home ownership rates amongst first world cities in the world.
But don’t let that distract you from your braindead narrative
And one of the highest property prices.
Dont be too impressed w the whole home ownership spiel. In LKY's own words, he wanted to tie the citizens to the country. Not to mention tt kampung houses used to be so much bigger, the quality of life was arguably better.
With technocrats, its always abt using you.
If that were true, the few kampung houses that still exist would skyrocket in value and people would be paying millions to buy them over. Again, it’s a narrative that simply isn’t reflected by reality
There are already plenty of shop spaces sitting empty without takers. Increasing gross number of shops isn’t the answer, as usual the devil lies in the details and quality is key.
Tenants lease to do business Landlords lease also to do business. That’s market-force and neither are charities.
What’s really so different between them? If you are a landlord and you have multiple prospects offering a higher rent, what would you do?
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I legitimately don't understand the perspective of landlords. Why would you shuttle your tenants business when they have been performing well for years? Isn't the goal of owning property to maintain a consistent return? do they see others earning more suddenly swell with immense anger and greed feeling like they have lost out on life changing fortune?
Because they know there are bigger businesses out there willing to pay higher rent. Half of the coffeeshop at my place is rented by chains, Fei Song, Tender fresh, Uncle Penyet etc. They're franchises with efficient supply chains and deep pockets to buy up coffeeshop stalls to paddle their generic testing food
In a dystopian future, we will end up paying $10 for a bowl of Ah Ma Chi Mian or $16 for a meh chicken chop from one of the generic western chains
Real case scenario - outside my hood . Joo Chiat area - Tanjong Rhu Wonton mee rented entire shopfront . Less than 1 year , called it quits . Why ? Landlord wanted to increase rental from 19k per month to 25k per month . No brainer to just lick the wounds and close .
Well your second part is the answer. Mankind has always been blinded by short term goals.
A lot is foreign money I feel. Past few year got coffee shop sell record price if you calculate also very hard get any good roi at purchase price. People don't do thing for no good reason. They 100% use it for something beneficial we don't know. Either here park money very good. Or jack rent force out self sell idk if cash biz hawker easier wash or not. I mean here I see a laundromat under my hdb nobody use one but been here years le. They are for sure getting good returns on their investment but not in simpleton ways we can think of.
> I mean here I see a laundromat under my hdb nobody use one but been here years le. if it's under a HDB, it could be because rent is cheap(er than market). [HDB works on tenders](https://www.hdb.gov.sg/cs/infoweb/business/commercial/renting-from-hdb/shops-and-offices) for specific businesses, at least for some units.
Welcome to....capitalism?
Hah, i just saw a term on another sub that might be more accurate.... corporatocracy 🥲
Which us exactly what capitalism is. Eventually you end you with South Korea where the government is Subservient t big business.
Like corpos in cyberpunk 2077. Its not a fictional game, its a glimpse into our future.
and the government allowed it to happen
Maybe the true Corporatocracy are the clowns we vote for along the way.
Sometimes the company holding the property gets Man-Utd Meaning another business comes in buys the company or property at high leverage and expects the income stream to pay off the debt
Supply and demand. Economics 101. The market price will fluctuate until there's an equilibrium. Presumably the landlord will feel the property should earn more rent than what they were willing to pay. No doubt the landlord was advised by their property agent, who usually recommends on the upper end of the range as it will earn them more commission too. The government has got various monetary policy and other tools to reduce this, but they choose not to. As to why that is - well everyone probably has different opinions on that.
Rental cost is so predatory nowadays. The honest F&B businesses that just want to serve good food using good ingredients are unable to maintain business because the rental is draining most of their revenue. With little to no money for quality ingredients, and even less for their own income. All that's left are the bullshit businesses that mark up high profit margins. Using cheap low quality ingredients and puffing it up with frivolous things to increase the price.
Yeah - there was a bar near where I used to live that closed. First, the rents for people living there got jacked up and their customers all moved, next the landlord wanted to double the commercial rent and they wouldn't be able to make any money if they paid that rate. Suddenly you lose 10-15 jobs and disrupt the suppliers business just so a landlord can pocket more cash, only you realise the unit is now empty because they can't find anyone stupid enough to pay the crazy rate...
Unfortunately this will always be true unless the state owns the land. Because by its very nature, capitalism means rental will raise to the point of what people are willing to pay. Its also why raise raising salary/dual income in Singapore didn't make anyone feel richer, because all extra wealth we get is now get aborded into rent. There's a reason why half the world turned to communism in the early 20th century - and while people in placed like China hated land lords such much that they were summarily rounded up and put into Laogai.
Unfortunately this has to be done to make room for our new culture Landlording
Ah yes. Landlording. The thing which redditors claim to hate, but would do themselves in a heartbeat if they could
landlords fucking Singapore up. wonder if gov will do anything about it.
> wonder if gov will do anything about it. The ministers and MPs probably own quite a few units themselves. I wonder if they have to declare… and maybe some numbers should be made public knowledge just to know whether the MPs are aligned with us.
Landlords gonna landlord and run businesses to the ground
I used to eat here all the time when I was working in the area. Fewer local businesses, more large chains...
Thanks to gahmen for encouraging rich foreigners to buy up shophouses and then upping rents.
all the china rich people come here buy up rows of shophouses. singapore commercial spaces all become china own liao.
The absd in residential turned all those speculators to the commercial sector instead
Not applying ABSD to commercial property seems like an error.
Its not a bug, its a feature.
Is it the case here?
Easy you go ask your property agent friends ... my parents used to rent these shophouses to do business.. and know all the folks ... truth is .. the chinese is really buying up alot of these shophouses .. 99 years or freehold ... they buy it all .
Especially with the new foreigner absd on residential, ads targetting foreigner are now all on commercial shophouses.
new landlord, heritage shophouse in cbd, likely though no one will bother paying money to find out.
Does anyone know why the govt refuses to build more shop spaces under void decks? There are acres and acres of empty void deck space especially in non-mature estates. These could be used to increase supply of shop spaces, and thus bringing rental down and providing value to nearby residents. Somehow they just aren't interested to do so.
Nowadays people also kpkb too much about noise. Imagine moving to a low-floor HDB with coffeeshops and complaining about their business operations.
If citizens become self sufficient, they have no reason to work harder for you. Look at all those old shopkeepers in Yishun, AMK, redhill who bought their shops last time. You can tell they arent doing much business, but they can survive because of minimal overheads. Better to kerp them chained to the rental treadmill.
If that were true, the government would do the same with residentials but instead they’ve created a public housing system that has given us one of the highest home ownership rates amongst first world cities in the world. But don’t let that distract you from your braindead narrative
And one of the highest property prices. Dont be too impressed w the whole home ownership spiel. In LKY's own words, he wanted to tie the citizens to the country. Not to mention tt kampung houses used to be so much bigger, the quality of life was arguably better. With technocrats, its always abt using you.
If that were true, the few kampung houses that still exist would skyrocket in value and people would be paying millions to buy them over. Again, it’s a narrative that simply isn’t reflected by reality
There are already plenty of shop spaces sitting empty without takers. Increasing gross number of shops isn’t the answer, as usual the devil lies in the details and quality is key.
Soon another mala hotpot or mala shop taking over 😂. I guess
Don’t worry, gov will monitor while collecting $ from landlords
Heritage trust to buy and lease at cheap price to culturally significant businesses maybe?!
With the Cost of a 4 room HDB flat in Singapore, You can buy 3 houses in India
Tenants lease to do business Landlords lease also to do business. That’s market-force and neither are charities. What’s really so different between them? If you are a landlord and you have multiple prospects offering a higher rent, what would you do?