Small proportion of Kampong Gelam tenants faced rental hikes of 25% or more, says Syed Harun
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The issue of rising rents made headlines when Warong Nasi Pariaman, a popular nasi padang eatery in Kampong Gelam, shuttered on Jan 31 after a 78-year run.
ST PHOTO: GAVIN FOO
- Some Kampong Gelam tenants faced rental hikes of 25% or higher, especially in high footfall areas; these rents were previously below market rates.
- Heritage district shophouse rents rose moderately (2% annually), comparable to the central area, while Warong Nasi Pariaman's closure wasn't rent-related.
- Support includes the SG Heritage Business Scheme, restrictions on non-heritage uses, and community partnerships.
AI generated
SINGAPORE – A small proportion of tenants in the Kampong Gelam area faced rental hikes of 25 per cent or higher when they signed their leases between 2023 and 2025.
These shops were located in streets with high footfall, such as Haji Lane and Bali Lane, Senior Parliamentary Secretary for National Development Syed Harun Alhabsyi told Parliament on Feb 3.
Some of these leases were previously signed at below-market rates, and the tenants might have experienced “a larger increase from their low base when the rates normalised towards the prevailing market rate”, he said.
Even with the hikes, their rental rates remained around 20 per cent to 60 per cent below those for conventional retail spaces in the central area.
Dr Syed Harun was responding to Ms Denise Phua (Jalan Besar GRC), who sought more data on rental hikes in heritage areas.
In response to queries from The Straits Times, the Urban Redevelopment Authority (URA) said about 10 per cent of leases signed between 2023 and 2025 saw a rent increase of 25 per cent or more.
It added that the median rent for shophouses in Kampong Gelam was $6.19 per sq ft (psf) in 2025.
In comparison, the median rent for shophouses in Singapore stood at $6.50 psf in the fourth quarter of 2025, according to a report by real estate firm PropNex on Jan 26.
Several MPs, including Ms Nadia Ahmad Samdin (Ang Mo Kio GRC) and Mr Saktiandi Supaat (Bishan-Toa Payoh GRC), raised questions on support for heritage businesses.
The issue of rising rents made headlines when Warong Nasi Pariaman, a popular nasi padang eatery in Kampong Gelam, shuttered on Jan 31 after a 78-year run
Dr Syed Harun said median rents of shophouses in the historic districts of Kampong Gelam, Little India and Chinatown have increased at a moderate pace of around 2 per cent a year over the past two years, citing URA data.
These increases were comparable with rental increases of conventional retail space in the central area and below nominal gross domestic product growth over the same period, he said.
Dr Syed Harun also noted that a representative from the family-run Warong Nasi Pariaman has clarified that its closure was not related to rental issues.
“The agencies are in touch with Warong Nasi Pariaman to discuss how we can facilitate their continuation, should they decide to do so,” he added.
Ms Phua also asked if options are being considered to balance the interests of different stakeholders such as tenants, landlords and heritage groups.
An inter-agency task force
These include support for marketing and business consultancy, as well as place management, to better showcase the heritage trades and activities in each historic district.
The task force is chaired by Acting Minister-in-charge of Muslim Affairs Faishal Ibrahim and Ms Low Yen Ling, Senior Minister of State for Culture, Community and Youth.
In October, 42 businesses have come under the scheme
Dr Syed Harun noted that URA has put in place controls to exclude non-heritage uses, such as new bars and Western fast-food restaurants, from the core areas of historic districts.
In June 2025, guidelines were also updated to disallow new souvenir shops in Kampong Gelam, in response to feedback by stakeholders on how the proliferation of such shops could negatively impact the character and mix of uses in the district.
“This helps to shape the tenant mix that aligns with the district’s historic character as well as (its) unique identity,” Dr Syed Harun said.
The authorities also work closely with the community, he said, citing the example of URA’s partnership with the Kampong Gelam Alliance for the upcoming Ramadan bazaar.
The alliance – a voluntary group of residents, cultural institutions, business organisations, property owners and hotels in the area – had developed a plan with URA to enhance the area’s heritage offerings and visitor experience.
“So you see that the partnership is not only on account of the Government alone, but also together with the ground, including the businesses, the trade associations, as well as the relevant alliances within the heritage districts,” Dr Syed Harun said.
The task force will continue to look into the interests and concerns of different stakeholders to find the “most suitable outcome” for businesses.
Mr Fadli Fawzi (Aljunied GRC) asked if there are any plans to extend the additional buyer’s stamp duty and seller’s stamp duty to commercial properties in heritage districts.
Dr Syed Harun said the ministry currently has no plans to do so.
