MPs also raise concerns over sublet rents

The authorities are aware that rents for privately owned HDB shops have “seen a steep increase recently”, said Ms Sun, adding that this coincided with a higher proportion of rental transactions involving smaller units, which tend to command higher per square foot rent.

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Asked by Mr Henry Kwek (Kebun Baru) if HDB could prioritise compulsory acquisitions for trades where high rental costs could have a larger impact on cost of living - such as cooked food shops — Ms Sun said one consideration will be whether the product or service is essential.

“When it comes to essential services — specifically in the areas of food and medical service — we will take a more critical look at it, especially where we deem that the supply in an area is less than what would be optimal,” she said.

HDB would then look into selectively acquiring shops so that overall supply goes up, said Ms Sun.

Responding to Mr Ang Wei Neng (West Coast-Jurong West GRC) on the number of privately owned HDB shops that have been acquired thus far, Ms Sun said she would have to check whether the board has ever made such acquisitions, as this is not HDB’s current policy.

She added that the privately owned shops were likely sold to their current owners at a high market price.

“If we are to look at acquiring the sold shop, which was already transacted at a high price, I don’t exactly think that that is a good use of taxpayers’ money,” she said.