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Rental rates depend on supply, demand - ST forum by Boby Jayaraman
Landlords can raise rents only when there are enough strong businesses to take the place of weaker ones.
Once this cycle stops, rents will fall.
This is how the free market system operates and it is best not to interfere.
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I fully agreed. Is all about demand and supply. Price will eventually come down with more supply in everything.
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This is applicable to almost every products.
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If this is the case,
1. mall operators should not offer food courts.
2. NTUC fairprice should pay market rate for many of its outlets (many have concession rentals by virtue)
3. Hawker Market should also be decided by market rental and the pastry sellers will take over and the soon kueh and chee cheong fun stalls will disappear.
4. All the markets and hawker centres should disappear and replaced by highest rental food courts.
He is a rich full-time investor and independent director. I salute him for basing his whole family here and become Singaporeans, but I think he has forgotten the social side effects of this market based approach.
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^^ totally agree. Is this guy an armchair junior economist or a PR who hasn't seen how "asset enhancement" policies of Singapore Inc had harmed us in the past 20 years?
This is not even new. It had been done and we are still paying the cost
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29-01-2014, 08:32 AM
(This post was last modified: 29-01-2014, 08:33 AM by Temperament.)
(29-01-2014, 12:31 AM)specuvestor Wrote: ^^ totally agree. Is this guy an armchair junior economist or a PR who hasn't seen how "asset enhancement" policies of Singapore Inc had harmed us in the past 20 years?
This is not even new. It had been done and we are still paying the cost Yes agree. But then just those people who live in landed semi-D suddenly become a few $million richer. Even though they may be not cash rich. And i think "asset enhancement" is still going on(aka target of 6.9 to ? million in total population).
We will be like HK & SHANGHAI.
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(29-01-2014, 08:32 AM)Temperament Wrote: (29-01-2014, 12:31 AM)specuvestor Wrote: ^^ totally agree. Is this guy an armchair junior economist or a PR who hasn't seen how "asset enhancement" policies of Singapore Inc had harmed us in the past 20 years?
This is not even new. It had been done and we are still paying the cost Yes agree. But then just those people who live in landed semi-D suddenly become a few $million richer. Even though they may be not cash rich. And i think "asset enhancement" is still going on(aka target of 6.9 to ? million in total population).
We will be like HK & SHANGHAI.
we wont be like HK and SH. coz these PRC cities have relative lesser public housing, compared to SG's 80%.
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1. Bobby and his families are Singaporeans.
2. He wrote an excellent book on REITs - "Building Wealth Through REITs"
3. He used to work for McKinsey and Standard Chartered
4. He is now a full-time investor, an independent director at Second Chance
(29-01-2014, 12:31 AM)specuvestor Wrote: ^^ totally agree. Is this guy an armchair junior economist or a PR who hasn't seen how "asset enhancement" policies of Singapore Inc had harmed us in the past 20 years?
This is not even new. It had been done and we are still paying the cost
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Quote:This is how the free market system operates and it is best not to interfere.
If the free market is disrupting the basic necessities, it must be moderated.
And, free market isn't exactly free either since majority of the commercial properties are owned by a few groups of developers and herd instincts among them will make them follow the leaders.
REITs are especially bad since they stress too much on creating values for shareholders with zero considerations of better shopping choices and nurturing of promising businesses.
At the end of the day, the shopping centres will end up with a few major brands (Giodarno, Uniqlo, Bossini, Kopitiam, Toast box, breadtalk....) simply because they are able to lower the costs via buying in bulks and employing of foreign workers.
Singapore shopping centres are just clones of each other.
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Is that really true?
I agree with the fact that most of the major brand stores are like clones everywhere but I have notice that a lot of small local shops are present in these shopping centers too selling either their own creations or selections they have made through their merchandizing process.
Similar when it comes down to food choices, I notice that there are big brands names and then a lot of small shops selling non branded food creations .
However , I seem to have seen that only in neighborhood malls and not so much in city malls. However, malls like Far East Plaza is not your clone mall.
I think as a mall operator one of the consideration would be diversity of tenant and choice and thus rental rates across tenants are very different.
Some tenants are there for diversity and choice and others are there for the profit they provide.
Have I got it wrong?
(29-01-2014, 10:27 AM)yeokiwi Wrote: Quote:This is how the free market system operates and it is best not to interfere.
If the free market is disrupting the basic necessities, it must be moderated.
And, free market isn't exactly free either since majority of the commercial properties are owned by a few groups of developers and herd instincts among them will make them follow the leaders.
REITs are especially bad since they stress too much on creating values for shareholders with zero considerations of better shopping choices and nurturing of promising businesses.
At the end of the day, the shopping centres will end up with a few major brands (Giodarno, Uniqlo, Bossini, Kopitiam, Toast box, breadtalk....) simply because they are able to lower the costs via buying in bulks and employing of foreign workers.
Singapore shopping centres are just clones of each other.
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