Tuesday, July 21, 2009

HDB shop corridor area cannot be sublet

I REFER to the report, 'Red boxes like red packets for HDB shops' (July 6); the letter by Ms Eileen Tan, 'Aljunied did right - Misuse of the red boxes should not be tolerated' (July 9); and the editorial, 'Shopfront stalls a boon' (July 12).

When HDB sells its shops, the corridor area is not part of the premises sold to shop lessees. As set out in the terms and conditions of the shop lease, all trades must be conducted within the shop premises. The corridor area is common property owned by HDB and managed by town councils under the Town Councils Act, for general use by the public.

Nonetheless, since 1990, HDB has exercised flexibility and allowed town councils to demarcate a portion of the corridor area to enable shop retailers to display some of their goods. This was intended to help shop operators increase the visibility of their product mix so as to draw customers into the shops.

Therefore, since the corridor area belongs to HDB and is not part of the shop space, shop operators cannot sublet the corridor area to other third parties.

Lim Huat Eng Deputy Director (Commercial Properties Management) for Director (Properties & Land) Housing & Development Board

Source: Straits Times, 21 July 2009

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