SINGAPORE: The recent resale transactions of two coffee shops in Bukit Batok and Hougang are outliers, compared to transactions of eating houses of comparable sizes in the past five years.
National Development Minister Khaw Boon Wan was responding in Parliament on Tuesday (Jul 14) to a question on whether the Government is concerned about the recent record price of S$31 million paid for a coffee shop in Bukit Batok and the S$23.8 million transaction in 2013 for a coffee shop in Hougang.
Mr Khaw said that since January 2010, there have been 32 resale transactions involving eating houses of comparable sizes. Ten of them were below S$5 million, 12 between S$5 million and S$10 million, and eight between S$10 million and S$15 million.
He said the two transactions at Hougang and Bukit Batok were between private entities. “If they overpay and need to charge above market price, they risk losing their customers and becoming insolvent,” he said.
Mr Khaw said the Government wants HDB residents to have access to affordable food. Firstly, HDB no longer sells its eating houses; it only lets them out for rental. Secondly, it ensures a sufficient supply of eating houses to maintain competition.
The minister said that there are three other eating houses near the transacted eating house in Bukit Batok, and four other eating houses and a new hawker centre next to the transacted eating house in Hougang.
Thirdly, HDB will continue building new eating houses. It will build 62 new eating houses in the next three years and will further ramp up the supply if there is clear demand for it.
In addition, the National Environment…