arcturuz
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https://www.channelnewsasia.com/singapore/chinese-fb-retail-rental-costs-5193971
The number of Nong Geng Ji and Mixue outlets in Singapore has tripled since 2023, according to research firm Momentum Works
SINGAPORE: With commercial rental costs in Singapore making headlines and generating animated discussions online, alongside reports of food and beverage shops shuttering, some segments of the public have pointed to businesses of mainland Chinese origin as the culprit.
A tenant cooperative has called out foreign players, while several local businessmen interviewed by CNA were convinced that a perceived influx of mainland Chinese retailers setting up shop here has raised rents.
But Chinese F&B brands operating in Singapore and approached by CNA denied paying higher rents; while analysts offered a more nuanced picture with one saying it was simply "market dynamics" at play.
“These Chinese players seem to have (an) endless supply of ammunition, of cash,” said Mr Andy Hoon, chairman of Bosses Network, an informal group made up of local businessmen.
If the rental is expected to be between S$30 and S$40 per square foot, Singaporean tenants would likely offer around S$36 to S$38, he said. A Chinese brand, however, might offer S$45, he claimed.
Private mall operators in Singapore typically do not share data on winning bids for shop spaces.
Mr Hoon said his contacts from China are of the mindset that they would need to offer higher rental to win bids, and that they are willing to do so to test out the market in Singapore – which they view as a stepping stone to the rest of the region.
The number of Nong Geng Ji and Mixue outlets in Singapore has tripled since 2023, according to research firm Momentum Works
SINGAPORE: With commercial rental costs in Singapore making headlines and generating animated discussions online, alongside reports of food and beverage shops shuttering, some segments of the public have pointed to businesses of mainland Chinese origin as the culprit.
A tenant cooperative has called out foreign players, while several local businessmen interviewed by CNA were convinced that a perceived influx of mainland Chinese retailers setting up shop here has raised rents.
But Chinese F&B brands operating in Singapore and approached by CNA denied paying higher rents; while analysts offered a more nuanced picture with one saying it was simply "market dynamics" at play.
“These Chinese players seem to have (an) endless supply of ammunition, of cash,” said Mr Andy Hoon, chairman of Bosses Network, an informal group made up of local businessmen.
If the rental is expected to be between S$30 and S$40 per square foot, Singaporean tenants would likely offer around S$36 to S$38, he said. A Chinese brand, however, might offer S$45, he claimed.
Private mall operators in Singapore typically do not share data on winning bids for shop spaces.
Mr Hoon said his contacts from China are of the mindset that they would need to offer higher rental to win bids, and that they are willing to do so to test out the market in Singapore – which they view as a stepping stone to the rest of the region.
