HDB calls time on assignment of tenanted business space

Singapore

THE Housing & Development Board (HDB) yesterday acted to curb rising operating costs and speculation in its rental commercial and industrial properties - a move that market watchers said will lead to a more level playing field for genuine businesses seeking space in those sectors.

The board said it has introduced a two-stage plan to end the practice of assignment where tenants can pass on their tenancy to a new party for a one-time fee. It added that it currently has 8,000 commercial tenants and 10,700 industrial tenants, and sees an average of about 500 cases of assignment for each group every year.