HDB SHOPS- TRADE-MIX AND RENTAL ANALYSIS

Abstract

The Housing and Development Board has achieved unprecedented success in solving the housing problem in Singapore. In the span of 24 years, it has improved once deplorable living conditions to a level that is envied by many, including the developed countries. While its task of providing shelter is a great success, how has the HDB fared in the provision of shops in the housing estates to serve the residents? This dissertation looks into two major aspects of this question: trade-mix and rental. In the analysis of trade-mix, it was proven that HDB shops have achieved commendable success in the provision of basic necessities. A survey on the shopping patterns of the HDB residents revealed that as a whole, about 67% of the basic purchases are made locally. In the case of the higher-order goods and services, however, the preference for the local facilities is less strong as only about one-third of such goods and services are bought in the estates. In the rental analysis, it was found that HDB shop tenants pay a substantially higher rent than their counterparts in nearby private shops. Also, shops in town centres have higher rents than those in neighbourhood centres. A comparison of rents paid by shops of different trade groups revealed that businesses with the advantage of devoting the trading space to a more intensive use pay a much higher rental.