Rental Rebates And Staggered Rent For HDB Commercial And Industrial Properties
Date issued : 22 Jan 2009
The Government has announced a package of measures to cushion the effects of the current economic slowdown. As part of these measures, HDB will be giving a 15% rental rebate to all our commercial and industrial tenants, as well as industrial land lessees for one year from Jan to Dec 2009. The 15% rebate includes the savings from property tax rebates that HDB is passing on to its tenants. The rebates will benefit 8,700 commercial tenants, 12,000 industrial tenants, and 360 industrial-land lessees.
2 The total rental rebates will amount to $112 million, comprising $65 million for commercial properties, and $47 million for industrial properties/land leases. HDB commercial tenants, industrial tenants and industrial-land lessees will pay lower rents as a result of the rental rebate. While the savings for each individual tenant or lessee will depend on the actual rent they are paying now, the average monthly savings for majority of the tenants are:
· $400 for a shop tenant
· $300 for an industrial unit
· $2,100 for an industrial-land lessee
3 All HDB commercial and industrial tenants, as well as industrial land lessees will enjoy the rebates. For those who are currently facing legal actions, e.g. tenancy infringements, HDB is prepared to waive legal action and extend the rebates to them with effect from 1 Jan 2009 once they renew their tenancy, or rectify the infringements.
4 The rental rebates will apply to tenders for HDB commercial and industrial properties that have closed on or before 22 Jan 2009. The rental rebate will not apply to tenders that close after 22 Jan 09, as tenderers would have factored the package of measures in their tender bids.
5 In addition to the rental rebates, HDB will also put in place measures to assist tenants in their next tenancy renewal. Currently, a staggered rent plan is in place to help industrial tenants who may face rental increases upon renewal. This plan will be enhanced and also extended to commercial tenants. With effect from 1 Feb 09, tenants with more than 10% rental increases and who opt to renew their tenancies for more than a year will have their rents adjusted gradually over their renewal term. (Please refer to Annex A)
6 Tenants will continue to have the option of renewing their tenancies for 1, 2 or 3-year terms. Tenants can choose shorter term tenancies if they expect market rents to fall over time. In the design of the assistance measures, HDB is mindful of the need to maintain a level-playing field between existing tenants and new tenants who bid for units at prevailing market rents.
7 HDB will be writing to all our eligible commercial tenants, industrial tenants and industrial land-lessees on the adjustments to their rents.
8 For enquiries, the tenants/lessees can call the following toll-free enquiry lines:
· Industrial properties : 1800-8663077
· Commercial properties : 1800-8663073
Annex A
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| <=10% | Market Rent (No Staggering) | Market Rent | Market Rent |
| > 10% to 20% | Up 10% from Existing Rent | Market Rent | Market Rent |
| > 20% | Up 10% from Existing Rent | Up 20% from Existing Rent | Market Rent |
(1) 1st Year if renewal is for 2-year term.
(2) 2nd Year if renewal is for 2-year term.