{"id":7227,"date":"2016-09-23T07:08:41","date_gmt":"2016-09-22T23:08:41","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=7227"},"modified":"2022-07-01T04:03:50","modified_gmt":"2022-06-30T20:03:50","slug":"revitalisation-of-shops-heartland","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/revitalisation-of-shops-heartland\/","title":{"rendered":"Revitalisation of Shops scheme: Can it affect flat values?"},"content":{"rendered":"
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We often talk about the importance of amenities, in determining the prices of resale flats. So it’s unusual that one key topic has flown under the radar: the recent <\/span>Revitalisation of Shops<\/span><\/a> (ROS) project, which started under the Budget this year. Resale flat owners, as well as buyers, would do well to take note:<\/span><\/p>\n

What is the Revitalisation of Shops (ROS) scheme?<\/b><\/h3>\n

The ROS is an initiative by the Housing Development Board (HDB) to revive fading heartland shops.<\/p>\n

The Revitalisation of Shops scheme provides an “upgrading budget” of $35,000 per shop (previously this was $20,000), where the shop owner only pays 20 percent of the cost, to a cap of $5,000. The rest will be paid by the relevant town council. For shop spaces that are being rented, HDB and the town council pay for the entirety of upgrading costs.<\/span><\/p>\n

The Revitalisation of Shops scheme also supports Merchants’ Associations (MAs), of which most heartland shops are members. MAs will only pay 50 percent of the costs of promotional events now, to an annual cap of S$500 per shop ($1,000 for rented shops). <\/span><\/p>\n

Furthermore, those with rented shops will get a concession of one month’s rent (because they can’t operate while upgrading takes place).<\/p>\n

Why does it matter?<\/b><\/h3>\n

The situation facing heartland shops is dismal. In a <\/span>Straits Times interview<\/span><\/a>, Mr Peter Lai, Vice-President of the Federation of Merchants’ Associations (FMAS), estimated a three to five percent vacancy rate in his neighbourhood shops.<\/span><\/p>\n

Heartland shops were the centre of HDB living, right up till the early 2000s. Examples are the mama shops, neighbourhood hair salons, and convenience stores that can be found below your flat. These used to form an integral part of HDB living, for reasons explained below.<\/p>\n

Toward the early 2000’s, a combination of large chain businesses and malls began to erode their business. For example, chain supermarkets like Sheng Siong and NTUC Fairprice began to replace individually owned minimarts.<\/p>\n

Another source of lost business came from our attempt to create more self-sustaining neighbourhoods. To Singaporeans, this means malls, and despite our malls proliferating everywhere, a neighbourhood is still considered incomplete without one. Suburban malls bring with them services (hair salons and spas) and retail (clothes, electronics, groceries) that are in direct competition with heartland shops.<\/p>\n

But does it matter if we lose them? The answer is “yes, a whole lot”. Because heartland shops provide more than just amenities. They also serve as:<\/span><\/p>\n