I REFER to Madam Tay Boon Yong’s letter, ‘HDB factory rents up 20%’ (Nov 29).
Our industrial tenants pay a fixed rent during their tenancy period, which could range from one to three years. Before the tenancy expires, they are offered the option of renewing their tenancies at the prevailing market rent.
In Madam Tay’s case, she last renewed her tenancy in January 2006, with a three-year tenancy expiring at the end of this month. Since 2006, the rent of similar industrial premises has increased by about 22.5 per cent. Since September last year, HDB has offered to stagger rent increases to assist industrial tenants like Madam Tay who face significant rent increases at tenancy renewal, by spreading their rent increases over the renewal term of three years.
To help Madam Tay confirm the prevailing market rent of her unit, she can opt for an independent assessment from a private valuer. Alternatively, HDB is prepared to put the unit up for tender so her company can re-bid for it. We will contact Madam Tay directly on the details.
HDB will continue to monitor the market closely and provide additional measures, if necessary.
Lee-Tang Li Fun (Mrs)
Acting Deputy Director (Industrial Properties Management Section)
Housing & Development Board
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