Hawkers, netizens disagree with record bidder's claim of S$10,000 rental value for food stall

A hawker who made a record-breaking bid of more than S$10,000 to rent a stall at Marine Parade Central Market and Food Centre believes that the steep offer is justified. However, other hawkers in the area have voiced their doubts, questioning whether the footfall and business potential can sustain such high rental costs.

Ms Yang Ailan, a seasoned hawker who currently runs a drinks stall in the same food centre, made headlines with her S$10,158 bid for a vacant stall at Block 84 Marine Parade Central. This bid, the second-highest for the unit, was just short of the S$10,680 offer that was eventually withdrawn.

Ms Yang's bid is now the highest active tender for the stall, setting a new record for hawker stall bids in Singapore over the past six years.

Speaking to Channel News Asia (CNA), Ms Yang justified her bid, stating that it reflected the high value of property and rentals in Marine Parade. "Everything in Marine Parade is expensive, from home prices to shop rentals," she said in Mandarin.

Ms Yang highlighted the prime location of the stall, which she believes is superior to another unit in the same centre that was rented out for S$6,800 last September. The recent opening of the Marine Parade MRT station in June has also boosted footfall by 20%, making the location more attractive.

Ms Yang hopes to secure the stall for her son, who, despite not being in the hawker trade, is an able cook. "Your parents are getting older by the day, you cannot just let them do all the hard work right?" she said, emphasizing the convenience of having two stalls close to each other, allowing family members to assist one another.

However, not all hawkers share Ms Yang’s optimism. Several hawkers CNA spoke to expressed skepticism about the stall’s value, given the high rental cost.

Mr Vijai Singh, a veteran hawker who has been operating a drinks stall at the centre since 1976, reminisced about better days when business was booming. He pointed out that customer traffic is no longer as robust as it was in the 1980s.

"Compared to the 80s last time, people want to pay S$6,000 to rent also nobody want to give. Business was so good, I rent out for what," said the 70-year-old. He noted that competition from other malls in the east, such as Parkway Parade, has diluted footfall in the area.

Similarly, Mdm Lai, who has been selling roast duck at the hawker centre for about 30 years, doubted whether the increased pedestrian traffic from the new MRT station would be enough to sustain such high rent. "The passing crowd here is not large. Those who patronise my stall are usually regulars who live in the area, unless there is church service," she said in Mandarin.

Both Mr Vijai and Mdm Lai agreed that the current footfall is insufficient to justify the high rental costs. They also noted that increasing food prices to cover the rent could deter customers, making it challenging to maintain profitability.

The debate over whether the stall is worth such a bid has also spilt over into online discussions, where many netizens have expressed their concerns on CNA's Facebook page.

One commenter highlighted the broader implications of such high bids, stating, "No matter what, it’s not a private market goods but a social goods. This will set a precedent for all other hawkers and coffee shop owners to use this as a benchmark and a valuation point to sell or rent their stalls, regardless of the economic conditions."

Another user criticized the decision, writing, "U choose to be carrot. The charge high high price to chop carrots. End of day, commoners suffer as they had to pay and pay. The landlords are the ultimate winners. Thank you for helping them get richer."

Concerns about the potential impact on consumers were echoed by several others. One person commented, "This stall is very very crazy. Sell drink and hot drink. You need to operate 24/7 to survive... Good luck to you. See how long you can stay on." Another warned, "This will set an unhealthy precedent for all the rest. Soon, standard rental will be 10k, and this cost will be passed to consumers. In the end, everyone loses."

The sentiment that hawker stalls should not be subject to bidding systems was also prevalent. One user argued, "Hawker stalls should never be on the bidding system. After the initial contract, the rent will be adjusted to 'market' rate, so may as well keep it at market rate to begin with and help hawkers to keep costs low and provide affordable food to all."

Another voiced concerns about the social impact, writing, "Sad, all hawker centres should be treated as social enterprises and not by tender! It should be a system that keeps the seniors occupied with customers & friends instead of locking themselves at home... For the younger generation, it will be good for them to try with lower cost risk, expand on their creative F&B ventures."

The tender process for the stall, managed by the National Environment Agency (NEA), is still ongoing, and the results have yet to be announced. NEA has stated that all bids are subject to evaluation, and it retains the right to reject any bid, even the highest.