Haji Lane store owner says rent increase worsened by foreign buyers
A TikTok video about rising rents in Haji Lane has sparked conversation online, after a shop owner claimed that foreign buyers are pushing prices beyond what local businesses can afford.
Posted on Sunday (22 March) by content creator Dargo, the clip features a retailer operating in Haji Lane, a well-known heritage and retail enclave in Singapore.
She said rents have surged over the years, even before the pandemic.
Source: @dargoyaki on TikTok
Shop owner says rents have nearly doubled
“One shop used to rent [the shop for] maybe SGD $5 to 6K, then they came in and bid at SGD$11K,” the shop owner told Dargo.
She added that such offers were not isolated incidents, noting that aggressive bidding has become more common in the area.
Despite rising costs, the shop owner said business conditions have worsened for many retailers.
“If you ask any small and medium businesses (SMBs), any retailer here, business is down, but rental prices are all going up.”
The retailer also alleged that some prospective tenants had approached existing shops directly to ask when their leases would end.
Source: Google Maps
“The serial subletter came to the shops and asked my staff, ‘When is your lease up?’”
She described the move as “blatant”, noting that turnover in the area has become increasingly frequent.
According to her, many long-standing and niche brands have gradually disappeared due to rising costs.
Heritage trades ‘cannot sustain’ amid rising costs
The retailer highlighted the decline of traditional trades in the area, including shops selling handcrafted goods.
She listed the examples of Songket and basket-weaving shops.
Source: Cotton Boutique, for illustrative purposes only
“You want to keep these trades, but these trades are sunset trades,” she said.
She added that such businesses struggle to survive due to rising rents and limited market demand for handmade products.
“They just can’t sustain.”
She also pointed out that younger generations may be less willing to take over these businesses if they are not financially viable.
Says foreigners can buy conservation properties without ABSD
A key concern raised was the role of foreign buyers in the commercial property market.
The shop owner claimed that foreigners can purchase conservation shophouses without paying Additional Buyer’s Stamp Duty (ABSD), as it applies only to residential properties.
“If you are a foreigner, and you buy a place in Singapore, you need to pay additional stamp duty,” she told Dargo. “But that is only applicable to residential.”
So the foreigners…they come in, and they scoop up all the properties, and they drive the price up.
Source: @dargoyaki on TikTok
According to her, these buyers are willing to pay above market rates, contributing to rising property values and rents.
The retailer thus questioned what this means for heritage preservation in the area.
“How many places in the world allow you to buy a conservation site when you’re not even a local?” she said.
She noted that many Kampong Glam properties are freehold or have long leases, making them attractive to investors.
Source: Comlink Coa on Facebook
However, she expressed concern that new landlords may not have an emotional connection to the area’s cultural significance.
The [foreign] landlords who come and buy these conservation areas, they know nothing about heritage.
Calls for more support for heritage businesses
The shop owner said she had previously raised concerns with the Urban Redevelopment Authority (URA) about preserving the area’s heritage character.
She cited the closure of traditional shops as an example of what is being lost.
“They start saying, ‘Oh, it’s such a pity’. But who was there to help them?” she said.
“You talk about conserving your area, but you sell it to foreigners, then what kind of conservation are you looking for?”
She added that she had personally been affected, having moved out of a Haji Lane unit after the pandemic due to rising costs.
MS News has reached out to URA for comment.
Have news you must share? Get in touch with us via email at news@mustsharenews.com.
Featured image adapted from @dargoyaki on TikTok and Google Maps.
