HDB AND JTC SHOPS (Premature termination of leases)

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HDB AND JTC SHOPS:

(Premature termination of leases): 10.

Mr Wee Siew Kim asked the Minister for National Development (a) how many JTC and HDB shops in the pastfive years (2000 - 2004) have either prematurely terminated their leases or suffered a change of lessees before the end of the lease term; (b) how do these numbers compare to the trend of priorfive year period (1995 - 1999); and (c) what are the three main reasons cited for such premature turnover. ****

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The Minister of State for National Development (Mr Cedric Foo Chee Keng) (for the Minister for National Development): Sir, HDB shop tenants can exit their business either by terminating their tenancy with HDB or by assigning their tenancy to another operator. There were about 900 terminations and 1,800 assignments between 2000 and 2004. Taken together, terminations and assignments were about 2,700 in the last five years, compared to 500 terminations and 2,300 assignments between 1995 and 1999- taken together, about 2,800. In fact, the number of change in tenants have dropped in the recent five years compared to the previous five years.

The three main reasons cited by shop tenants for giving up their shops are:firstly, they are of ageand their children do not want to carry on the business; secondly, they are relocating their businesses elsewhere; and, thirdly, because of poor business conditions.