Not current policy to buy back HDB shops that had been sold: Sun Xueling

As it is not the Housing & Development Board's (HDB) current policy to acquire HDB shops that have been sold, Senior Minister of State for National Development Sun Xueling shared that certain conditions must be met before HDB buys back such shops.

This was in response to a supplementary question by Ang Wei Neng, Member of Parliament (MP) for West Coast - Jurong West GRC, on what circumstances would HDB consider acquiring HDB-sold shops.

Ang said these shops are often leased out at the highest possible rent, which frequently results in units being leased to businesses like spas or licensed money lenders, who can pay that higher rent.

"This, in turn, can lead to an undesirable business mix in the neighbourhood," Ang added.

He then asked Sun whether HDB would consider "accelerating" the acquisition of the HDB-sold shops.

Criteria to consider

If HDB were to buy back such units, Sun shared that HDB must consider where the services provided by the HDB-sold shops are essential to the neighbourhood and are "not at the right balance where residents are being adequately cared for".

Sun also outlined the difficulties in buying back such shops, noting that the shops were sold at a high market price in the first place and would require HDB to buy back the shops at high prices.

"If we are looking at acquiring the sold shop, which is already transacted at a high price, I don't exactly think that that is a good use of taxpayers' money," she replied.

Another possibility would be for HDB to selectively acquire shops around the sold shop to increase supply. Sun noted that this is something that can be considered.

However, HDB would need to examine the overall supply of shops in the market, as well as the range of products and services offered.

Residents have complained

Previously, Tanjong Pagar residents had highlighted the many massage parlours and beauty salons in Tanjong Pagar Plaza (TPP), and how they were worried that some operators might be engaging in illegal activities.

MP for Tanjong Pagar GRC, Foo Cexiang, wrote in a Facebook post that "parents are uneasy whenever their children go past these shops", given that there are several pre-schools in the plaza.

Foo explained in his post that the retail mix in TPP stemmed from the sale of a "significant number of shops" with about 80-year leases in the plaza by the Housing and Development Board (HDB) in the 1990s.

As a result, "HDB has limited regulatory levers over these shops", Foo wrote.

He added that given the current relatively low footfall in the plaza, "only a small range of businesses" can afford to pay higher rental – massage establishments and beauty salons, in this instance.

Police raids on vice activities see action taken against the masseurs and business owners if they are complicit, "but the shop owners typically are not implicated as they are much less likely to be complicit", Foo wrote.

He added: "The shop owners may then find new business owners of similar trade to let their shops to."

He added that he has also asked the Ministry of National Development and HDB to consider buying back leases from owners of shops that had been sold so that HDB is better able to "curate the trade mix of shops and respond to resident needs".

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