Dunman Food Centre: Some hawkers shocked by latest S$6,929 rental bid for stall

A hawker stall on the second floor of Dunman Food Centre attracted five bids in October 2024 by prospective tenderers vying to rent the premises.

The highest offer was S$6,929, 8world reported on Nov. 18.

The bid was placed in the final round of bidding before the National Environment Agency (NEA) implements the new rental renewal policy for hawker stalls, which is set to take effect from the next stall tender exercise in November 2024.

And the figure has raised eyebrows.

Bid by son of hawker

The highest bid came from the son of a Dunman Food Centre hawker, who already operates a stall in the same row as the stall put up for rent.

He said he plans to open a third drinks stall if he wins the tender.

But this ambition appeared daunting for some who operate there.

One hawker said in response: "This rental rate is a bit ridiculous."

Another vendor commented: "We can accept the market rate offered by the government now. But if it increases, we'll have a more difficult time."

Some hawkers expressed concerns about the impact on business.

One drinks stall hawker said: "The lower the bid, the better."

"Because if we set our rentals too high, customers will leave upon asking about how much we charge."

Toa Payoh hawker stall in demand too

A vacant food stall at Toa Payoh's Lorong 8 hawker centre also attracted high bids.

Out of the four bids received, the highest was S$6,508.

This marks a record high for the hawker centre since 2021, 8world reported.

In response to these latest competitive bidding, the chairman of a Toa Payoh shopkeepers and hawkers association was quoted as saying that rents must remain competitive in order for vendors to stay afloat.

Revised rental policy to deter high bids

To discourage high bids for hawker stalls, NEA recently announced that the rental policy will be revised.

In the past, some prospective tenderers may have submitted excessively high bids upfront to secure their preferred stall.

Under the current policy, high bids for rents would drop to market rates after a three-year tenancy.

New policy mechanics

With the new policy, the rent will only return to market prices by the third tenancy term, instead of the first.

In the second term, the rent will reduce by 50 per cent of the difference between the tendered rent and the market rate.

This staggered decrease over three years may cause prospective tenderers to reconsider putting in too high an initial bid.

Fairer competition hoped for

Vendors who spoke to 8world also expressed hope that the proposed policy changes would lead to fairer competition.

One vendor said: “On the other hand, (the new policy) means that there is a check on tenderers who want to put in a bid, as they have to think about it."

Top photo via Google Maps