HDB spaces: No subletting rule observed in the breach

THE Housing Board's reply, 'HDB shop corridor area cannot be sublet' (July 21), stated that HDB corridor areas should not be sublet by shop owners to third parties.

This may be the rule, but in my experience, it is often breached.

We operate shops dealing in mobile phones in Clementi and Bedok Central. A 100 sq ft 'hole in the wall' in these locations costs up to $7,000 a month to rent.

However, there are many fly-by-night mobile phone operators who set up shop in the yellow boxes in these areas and pay about $2,000 a month to rent the space. In Bedok Central, town council officers periodically patrol the neighbourhood to check on illegal peddlers. However, enforcement of the rule has been inconsistent.

A retailer selling accessories in a block there now rents out a small space inside the shop to a mobile phone retailer who then uses 'her' yellow box to sell mobile phones.

When we did the same thing a few months ago by renting a space within a provision shop in the same block and used the outside yellow box, we were told by the town council to vacate the outside area or face stern penalties. We understand that the landlords for both shops pay the same monthly fee to the town council for use of the yellow boxes.

To complicate matters, another retailer selling watches and optical wear in the same block also sells mobile phones in the yellow box space in front of his shop.

As this retailer owns and manages three different types of businesses, is he then allowed to use his yellow box to sell mobile phones?

What if that retailer selling accessories in her store claims that the mobile phone business belongs to her?

At Clementi Central, the situation is blatant. Over the years, legitimate mobile phone retailers have been vacating the area because of intense competition from illegal peddlers who sell the same products but pay a fraction of the rental.

The town council has not acted against such rental abuses. Now, there are at least eight illegal mobile phone retailers operating out of yellow boxes in Clementi Central.

Such inconsistent application of the rules runs contrary to efforts by the merchants associations to rejuvenate HDB areas and attract shoppers. We urge the HDB and respective town councils to be more diligent and consistent in checks of these illegal peddlers.

Hong Ghim Phong

Source: Straits Times, 5 Aug 2009