Haji Lane rents double & even triple due to bidding wars & subletting trend

Rents at Haji Lane and the surrounding Kampong Glam area have nearly doubled, and in some cases tripled, in the last three years.

This has led businesses to warn of a tenant churn and a "dilution" of "Malay-Muslim culture" if more new entities moved in.

Kampong Glam's rental situation

According to a Jan. 8 broadcast segment by CNA, rents have gone up.

What was previously a S$3,000 rental has hit S$10,000 in one instance, it was reported.

At least 10 shops in Haji Lane alone have shuttered in the past three years, with some shops reportedly not making it past the first year.

In response, the Kampong Gelam Alliance (KGA) said boosting footfall and increasing cultural engagement may help mitigate rental costs and maintain the vibrancy of the district.

Honey ice cream shop closed down

Hakim Ismail, owner of Honeybee, a honey ice cream parlour that opened in Haji Lane in 2022, told CNA’s Nadirah Zaidi in late 2025 that he had asked his landlord about lease extension.

The landlord did not reply for a week following the query, Hakim said in the interview.

Instead of offering an extension, the landlord said they wanted to “take back the whole unit”.

It was understood that the first and second floor of the shophouse would then be renovated and rented out for an asking price of S$14,000 per month.

This development came in the wake of rents for Honeybee having nearly doubled over the last three years, "with little room for negotiations", it was reported.

The issue for the business was compounded by declining sales in the last few months.

The shop reportedly used to make S$1,000 a day, even on weekdays, but sales had halved after mid-2025.

Honeybee did not renew the lease and closed weeks after speaking to CNA.

It has another store in the basement of Tampines One, which opened in June 2024.

Talk of serial subletter bidding up rentals

CNA also reported that there was chatter about a person who would hunt for units with expiring leases and swoop in offering landlords and agents a higher rental bid.

This leaves existing tenants unable to match her offered prices.

Once the rent price was secured, the individual would not move in, but lease out and sublet the unit at an even higher price.

Tenants are allowed to rent these units from the landlord directly and rent it out again to other tenants, an arrangement that has a tendency to increase rental prices.

Some shops that did not survive their first year were reportedly replaced with pop-up stores.

The majority of Kampong Glam shophouse landlords are third or fourth-generation descendants of Arab families or merchants, CNA reported.

Rise in foreign-owned companies settling in

Another concern was the rise in foreign and foreign-owned companies moving into the units.

These include Chinese beverage company Mixue.

One phenomenon observed was that a chain of four tourist souvenir shops in the Kampong Glam area are run by one person.

Soul Chen, the owner of Sinnkawa, told CNA that he is a sublet tenant.

He operates the Singapore Gift Gate stores.

Many of these retail units once housed restaurants and clothing stores.

Chen said he was fond of the area and opened all four shops in the same district for greater exposure.

During peak periods, his business makes around S$10,000 a day, which covers the S$60,000 monthly total sublet rent for his four units.

He said: "The landlords are very rich, so they don't have time to deal with tenants, instead they regularly use agents to represent them in dealings."

Other revenue streams for his business include supplying to Hai Di Lao and Popular bookstores.

Stores catered to tourists faring better

The report also stated that tourist shops tended to fare better, with 15 per cent of the current 79 shops in Haji Lane catered to travellers.

Out of this, there are six Korean-style photobooth shops and four souvenir shops, reported CNA.

Keith Kok, the co-founder of Solace Studios, said he picked Haji Lane for its "central location" and "good mix of locals and tourists".

Rising rental costs and tough competition has caused Solace Studios to shutter one store, leaving two left.

Kok called Haji Lane's reputation as a photo booth street "a double edged sword", as the draw of these businesses "negatively impact the variety" of shops in the area.

He said: "People say, 'Might as well call it photobooth lane instead of Haji Lane'."

Tourism arrivals major cause of hiked rental prices

CNA reported that research has shown an overtourism trend in other parts of Singapore, such as Joo Chiat.

Tourism arrivals has an impact on rental prices.

The rising rental costs are also attributed to Kampong Glam's proximity to the Central Business District (CBD).

When compared to other conservation areas, such as Chinatown and Little India, where rents have increased by about 5 per cent, Kampong Glam's rental price hike has been steeper at 25 per cent.

These are based on figures of yearly median rates comparing 2023 and 2025.

Cordon off roads for greater footfall?

The KGA, the district's business alliance, believes that the key to balance rising rents is to increase footfall.

The alliance does not control rent prices and leaves it up to market forces.

Instead, it facilitates landlord exchanges and pushes for more cultural vibrancy.

The KGA is petitioning to close off Bussorah and Baghdad streets daily not just on weekends to boost footfall and engagement, and to allow for cultural performances.

Syed Osman Alsagoff, the place director for the KGA, added that schools should host more tours to show students the area's cultural heritage, as its footprint is at risk of getting smaller.

Traditional shops at Kampong Glam have dwindled with fewer fabric and attire shops.

Toko Aljunied, a pre-war fabric store established in 1940, is still standing.

The business, which has served four generations of customers, was recognised as a Singapore Heritage business in 2025, reported The Straits Times.

The owner, Zahra Aljunied told CNA she owns the building.

While she welcomed the new tenants, she felt that too many of them could dilute the cultural identity of the place.

Top photo via Google Maps.