Daily Lessons from Life 15 October 2013 - HDB acts to rein in speculation in commercial, industrial properties

First of all, Selamat Hari Raya Haji to our Muslim Singaporeans and friends. "HDB acts to rein in speculation in commercial, industrial properties - CNA 15 October 2013 SINGAPORE: Commercial and industrial tenants in Housing and Development Board (HDB) properties will no longer be allowed to assign their premises to another party. The HDB announced this on Monday, in a move to weed out unhealthy speculation and rising assignment fees. Assignment fee is the amount agreed upon between the proposed tenant and existing tenant for the transfer of the property. The HDB has about 8,000 commercial and 10,700 industrial tenants. Currently, they are allowed to assign their premises to another party, a move meant to facilitate the exit of marginal tenants and minimise disruption of services. But the HDB says it has seen an upward trend in the average assignment fee and tendered rent in recent years. This contributes to higher operating costs, which may be passed on to residents and consumers. Praising the move, Chua Ser Kang, president of Joo Chiat Merchants Association, said: "It will bring tenants back to the original intent and prevent speculation. It'll also lower rentals." HDB also announced it will increase the supply of HDB shops, by building four new neighbourhood centres over the next five years. This is in tandem with the ramped up development of public housing." Another 'Better late than never' move by the government! Lessons for me are: 1. it vexing question in the minds of many ordinary Singaporeans must be: 'what took them so long to realise this abuses?' Sad but probably a fair assertion!; 2. in such a situation, the government may want to emphasize the need to keep the cost of operating HDB shops and, as the government had already done to curb the speculation in the public hawkers center rental, lowering the operational costs. This will or can translate into affordable prices for the goods and services in the HDB neighbourhood and help the ordinary Singaporeans with their daily expenses budget!; 3. there will be some people being adversely affected by this move - those who had or wanted to assign their shops or stalls and just collect a 'fixed income' without working anymore as their assignees believed that they can make MORE money that what the assignment money they paid. Fair deal one may says. Unfortunately, this was NOT the original intentional of the original 'cheap price and rental' were meant for. It was meant to keep cost of providing the essential goods and services in the HDB neighbourhood to be affordable for the mostly ordinary Singaporeans making ordinary money! It is better LATE than NEVER! So, keep the operating costs down. It should be a short term measure but a long term focused goal always of HDB!!