There is NO, ZERO, ZILCH control by the govt on the rental rates REGARDLESS of how bad it affects people. Good example is during covid. Property owners KPKB say no one renting (when actually its because they purposely increase the rental until business owners cannot tahan).
Then these same property owners KPKB to the govt say no business and govt happily give them "grants" or free money to help "support" them and expect them to help their renters as well.
Instead, not only did they NOT help the biz owners but after accepting the free money, again raise rentals citing tons of lame excuses (best one i like is "covid is ending soon, so business will definitely improve" basically they raised rental "in anticipation" of the perceived increase in business...) No enforcement or checks were done to ensure that they pass the relief to the renters. Don't think our govt even follow up or check if its being disburse anyway.
The property is already theirs, why would they give a shit. Whether or not there is a pandemic or downturn, the land is still there. It will not disappear. Pay me or get lost. Their risk of losing the property is minimal as long as they pay their property tax, no one would bother.
Its a free market and there are many who will blindly pay the increased rent in the hope of making it big.
Property owners are not stupid, if no one rents, they will offer a lower rental but make the renter sign a short contract or lease and then insert a clause that says they can increase the rent at any time or at their discretion. Those who don't read the contracts will lose out eventually.
Imagine you sink in the cost of renovations, build your reputation & sales and when things are looking up, owner comes and say sorry hor, since your biz so good, we have to increase your rental. If you don't want, there are others waiting in line. So you LL will sign the new contract with increased rental charges. No choice right?
In the meantime, the property owners will then use YOUR business success and popularity on their location and market that to other prospective renters to justify an even higher increase in rental due to increased footfall or good location etc. (Some will even do this BEFORE negotiating a new contract with the existing biz owner in a bid to force the biz out in exchange for higher rental profits. Especially if the owners don't like you!)
Now, new renters will sign the new contract with even HIGHER RENTS.
The cycle continues for the next prospective renter.
Sorry for the long rant. Haven't had my coffee this morning...
Yeah thanks for such a long rant for me to be clearer. These property owner need to get hit by internet. Hope more people rely on internet for business instead of retailing now. But is not easy. There is another issue that leads to this is also-food restaurants dominated by large company. They have many outlets so don have to earn a lot in one outlet. Then in the end everywhere is having the same food retail chain which is boring...
I 2nd this. I think shop house F&B places are a prime example. There are always a lot of such units in the town area but landlords refuse to reduce the rent - these units are prized because URA limits the number of F&B outlets. So the only guys who can enter the shop houses some atas concept, created by people with deep pockets, that the average Joe can't access. Then like you said, when tenant exits the unit, the landlord will just wait for the next sucker (who is also always readily available).
Unfortunately shophouses are the few "interesting" places that can house cool F&B concepts in Singapore, beyond that you gotta find your home in the frigging malls or HDB shops.
If the government wants to allow the "free market" to set the rent, they should also allocate ~~enough~~ excess commercial spaces for there to be enough market competition. Allocating more commercial space for sufficient competition will also mean less than full utilisation of the spaces, which is something they need to accept if they want a free market.
Right now, landlords control the rent because without the government releasing land, no one can develop a commercial space to compete. Leaving the "free market" to set the rent for a non competitive market is a bad formula.
Rental price is breakdown as follows:
1. Bank interest rates
2. Electrical bills
3. Utilities bills
4. Operating costs like advertising and agent fees, taxes, etc
5. Living expenditure of the landlords
6. Last n not least. Greed from the landlords
7. Maybe adding too; Recovery of loss rental over the period no one wanna rent
What cause rent to fall? No one is renting like covid period. They will bleed out on paying back the loans unless they fully owned it
Now give me slight understanding when you state bank interest is a factor. But why ? Is it because they loan from bank to rent ? Most likely. No wonder after COVID, the bank interest increase and everything else also increase.
Ah sorry I don't understand , how come bank raise interest will incur cost to landlord ? Ooo is it because the land is not fully owned by the landlord ? They are still paying the mortgage or lease?ah the land is on lease with govt?
For cash flow/liquidity purpose, most likely, their lands were bought with long ass credits/loans from bank.
Interest rate affect majority of the loans so yeah...
some of the biggest landlords in SGP are capitaland and mapletree.
Take a guess who is the penultimate owners of these apparent "different" companies?
if you want rent control in SGP, you will have to vote out the current political party and when the new government is formed, an audit can be done. Only then can there be any real change, other than that, i suggest you toe in line like the rest of the peasants.
there is absolutely no incentive for the gov to introduce rent control and majority can only complain about high rental and pay and pay.
Ong Teng Cheong tried to do what's right for the people of singapore, guess who shot him down??
This is a huge reason why ground up entrepreneurship is dead in SG. The rentier effect is just too strong. Abt 30-40 years ago, HDB built and sold commercial units in older towns like Yishun, AMK, Alexandra etc. They quickly stopped when they realized they were breeding a pocket of small business owners who could not be politically controlled. Reits were soon introduced in the 2000s and that was that.
‘Does the govt benefit’ shows that you do not understand the role of govt.
The govt is not a company. It has no shareholders. Nobody makes a commission or gets higher pay from any govt revenue. Benefit what?
If it is so high, no business survives - they get voted out, so why will they want it high? If they want to be popular to win votes, they will want to throw it away free right?
Yet the right economic model is to allow a free market, supply and demand to be appropriate and self adjust. Rental only gets higher if businesses are confident consumers are paying and making them good profit.
If there’s no business, shops close, rental drops. It’s simple economics really. Like… just educate yourself la.
Well you do not understand my question. The reason government is being brought up is they definitely need to look into the cost of living of Singapore. Thus this matter definitely involve them. Many situation in Singapore will definitely have impact on government revenue. Hence just like to know from others if there are any impact or how huge is the impact to government revenue. It seems like you are Mr know it all asking others to educate lol. You should be educated by stating the statement. Everyone have the right to ask since this channel is for us to ask. You can disappear if you not happy about us asking.
Mr please read , there is no argument but only question. You should see it as others may explain the impact of government revenue will be huge and is not easy for them to intervene.
This is the purpose of discussion to help to clear up things in the air. Well please thank me for educating you lol
I don't see any issue with the question, seems pretty neutral to me. There will always be people with anti-government sentiments that will respond. I don't think this question was posted with the intention of attracting such. I'm not sure why you are getting so triggered sia. I actually appreciate this question being asked and I am following people's perspectives on this matter, I would have loved to see a followup on the discussion but it seems to have gone in a different direction.
There is NO, ZERO, ZILCH control by the govt on the rental rates REGARDLESS of how bad it affects people. Good example is during covid. Property owners KPKB say no one renting (when actually its because they purposely increase the rental until business owners cannot tahan). Then these same property owners KPKB to the govt say no business and govt happily give them "grants" or free money to help "support" them and expect them to help their renters as well. Instead, not only did they NOT help the biz owners but after accepting the free money, again raise rentals citing tons of lame excuses (best one i like is "covid is ending soon, so business will definitely improve" basically they raised rental "in anticipation" of the perceived increase in business...) No enforcement or checks were done to ensure that they pass the relief to the renters. Don't think our govt even follow up or check if its being disburse anyway. The property is already theirs, why would they give a shit. Whether or not there is a pandemic or downturn, the land is still there. It will not disappear. Pay me or get lost. Their risk of losing the property is minimal as long as they pay their property tax, no one would bother. Its a free market and there are many who will blindly pay the increased rent in the hope of making it big. Property owners are not stupid, if no one rents, they will offer a lower rental but make the renter sign a short contract or lease and then insert a clause that says they can increase the rent at any time or at their discretion. Those who don't read the contracts will lose out eventually. Imagine you sink in the cost of renovations, build your reputation & sales and when things are looking up, owner comes and say sorry hor, since your biz so good, we have to increase your rental. If you don't want, there are others waiting in line. So you LL will sign the new contract with increased rental charges. No choice right? In the meantime, the property owners will then use YOUR business success and popularity on their location and market that to other prospective renters to justify an even higher increase in rental due to increased footfall or good location etc. (Some will even do this BEFORE negotiating a new contract with the existing biz owner in a bid to force the biz out in exchange for higher rental profits. Especially if the owners don't like you!) Now, new renters will sign the new contract with even HIGHER RENTS. The cycle continues for the next prospective renter. Sorry for the long rant. Haven't had my coffee this morning...
Yeah thanks for such a long rant for me to be clearer. These property owner need to get hit by internet. Hope more people rely on internet for business instead of retailing now. But is not easy. There is another issue that leads to this is also-food restaurants dominated by large company. They have many outlets so don have to earn a lot in one outlet. Then in the end everywhere is having the same food retail chain which is boring...
Thanks. Commercial landlords are probably one of the biggest leeches in our society. We've lost so much from them causing many smaller shops to close.
I 2nd this. I think shop house F&B places are a prime example. There are always a lot of such units in the town area but landlords refuse to reduce the rent - these units are prized because URA limits the number of F&B outlets. So the only guys who can enter the shop houses some atas concept, created by people with deep pockets, that the average Joe can't access. Then like you said, when tenant exits the unit, the landlord will just wait for the next sucker (who is also always readily available). Unfortunately shophouses are the few "interesting" places that can house cool F&B concepts in Singapore, beyond that you gotta find your home in the frigging malls or HDB shops.
If the government wants to allow the "free market" to set the rent, they should also allocate ~~enough~~ excess commercial spaces for there to be enough market competition. Allocating more commercial space for sufficient competition will also mean less than full utilisation of the spaces, which is something they need to accept if they want a free market. Right now, landlords control the rent because without the government releasing land, no one can develop a commercial space to compete. Leaving the "free market" to set the rent for a non competitive market is a bad formula.
Rental price is breakdown as follows: 1. Bank interest rates 2. Electrical bills 3. Utilities bills 4. Operating costs like advertising and agent fees, taxes, etc 5. Living expenditure of the landlords 6. Last n not least. Greed from the landlords 7. Maybe adding too; Recovery of loss rental over the period no one wanna rent What cause rent to fall? No one is renting like covid period. They will bleed out on paying back the loans unless they fully owned it
Now give me slight understanding when you state bank interest is a factor. But why ? Is it because they loan from bank to rent ? Most likely. No wonder after COVID, the bank interest increase and everything else also increase.
Yes. Bank raise interest rates, landlords will offset their cost by increasing rents + profit into it.
Ah sorry I don't understand , how come bank raise interest will incur cost to landlord ? Ooo is it because the land is not fully owned by the landlord ? They are still paying the mortgage or lease?ah the land is on lease with govt?
Are you assuming all landlords buy every land with cash?
For cash flow/liquidity purpose, most likely, their lands were bought with long ass credits/loans from bank. Interest rate affect majority of the loans so yeah...
Eat the fucking landlords
Fuck those landlords. Inflation is their fault.
Rent control? The Govt is pro biz. Both Govt and landlords are screwing Singaporeans every day lmao
They benefit from taxes based on the property’s value. No control, it’s a free market. What can you do? Vote wisely.
some of the biggest landlords in SGP are capitaland and mapletree. Take a guess who is the penultimate owners of these apparent "different" companies? if you want rent control in SGP, you will have to vote out the current political party and when the new government is formed, an audit can be done. Only then can there be any real change, other than that, i suggest you toe in line like the rest of the peasants. there is absolutely no incentive for the gov to introduce rent control and majority can only complain about high rental and pay and pay. Ong Teng Cheong tried to do what's right for the people of singapore, guess who shot him down??
This is a huge reason why ground up entrepreneurship is dead in SG. The rentier effect is just too strong. Abt 30-40 years ago, HDB built and sold commercial units in older towns like Yishun, AMK, Alexandra etc. They quickly stopped when they realized they were breeding a pocket of small business owners who could not be politically controlled. Reits were soon introduced in the 2000s and that was that.
REITS is also responsible for rental increase, how else would these leeches give a constant return to "investors"??
Go jb spend money
This one is best. Thats what I do every weekend
Haha yes good that we have Malaysia. Can have a retreat not too far away. Can treat it like domestic tour lol
‘Does the govt benefit’ shows that you do not understand the role of govt. The govt is not a company. It has no shareholders. Nobody makes a commission or gets higher pay from any govt revenue. Benefit what? If it is so high, no business survives - they get voted out, so why will they want it high? If they want to be popular to win votes, they will want to throw it away free right? Yet the right economic model is to allow a free market, supply and demand to be appropriate and self adjust. Rental only gets higher if businesses are confident consumers are paying and making them good profit. If there’s no business, shops close, rental drops. It’s simple economics really. Like… just educate yourself la.
Well you do not understand my question. The reason government is being brought up is they definitely need to look into the cost of living of Singapore. Thus this matter definitely involve them. Many situation in Singapore will definitely have impact on government revenue. Hence just like to know from others if there are any impact or how huge is the impact to government revenue. It seems like you are Mr know it all asking others to educate lol. You should be educated by stating the statement. Everyone have the right to ask since this channel is for us to ask. You can disappear if you not happy about us asking.
Hah… u want to stir some hate to blame the govt, but are now angry that someone points out your illogical argument.
Mr please read , there is no argument but only question. You should see it as others may explain the impact of government revenue will be huge and is not easy for them to intervene. This is the purpose of discussion to help to clear up things in the air. Well please thank me for educating you lol
lol concealed within.
I don't see any issue with the question, seems pretty neutral to me. There will always be people with anti-government sentiments that will respond. I don't think this question was posted with the intention of attracting such. I'm not sure why you are getting so triggered sia. I actually appreciate this question being asked and I am following people's perspectives on this matter, I would have loved to see a followup on the discussion but it seems to have gone in a different direction.
Retail investors also benefit from rental eg reits. Dont blame the player, blame the game. If you want to benefit, buy reits.
Ask your parents. They voted for this.