Outdoor display areas outside HDB shops offered online for sublets despite rules

When asked if she had sought approval from the town council, she said she was not sure, as the arrangement was handled by an agent. She finds spaces to rent through a WhatsApp group chat, she said.

The seller noted that rent for yellow boxes has increased significantly over the years, with some costing S$200 for half a day’s use. At Kovan, she pays around S$70 a day.

“In the past, it used to be very affordable, now it’s so expensive,” she said in Mandarin.

Another seller who sold accessories and jewellery outside an optical shop echoed that rental prices for such spaces have doubled in the past five years. She rented the space for two days at about S$90 a day.

“Renting yellow boxes is very convenient … there’s more freedom. And as one person roaming around it’s better, it’s less stressful than having a (permanent) store,” she said in Mandarin.

She added that both she and the optical shop owner were permitted to carry out this arrangement.

At Ang Mo Kio, there were at least a dozen stores selling goods of an unrelated trade in yellow boxes, including accessories, plants and bedding. When approached by CNA, a few sellers said that they were part of the main shop.

A seller who rented the outdoor display area outside an optical shop said a constraint about the arrangement is that she had to sell similar items.

TOWN COUNCIL’S MANAGEMENT

In response to queries from CNA, HDB directed CNA to a parliamentary speech in March 2023.

Then-Senior Minister of State for National Development Sim Ann said during the Committee of Supply debate that under current guidelines, unrelated trades are not allowed at outdoor display areas as these are primarily meant as an extension of the existing shops’ operations, to draw crowds into the shops.

She was responding to a question from Workers’ Party chief Pritam Singh on whether there were exceptions to the rules to allow itinerant traders to sell their goods at outdoor display areas. 

Ms Sim noted that while HDB has issued guidelines on the management of these areas, town councils are “empowered to manage” these outdoor display areas as part of common property.

“The foremost consideration is to ensure public safety and tidiness of these common areas. Hence, we require clear and open passageways, and for the local shop operator to manage the outdoor display area operations directly outside the shop,” she said.

She added that while itinerant retailers can add vibrancy and variety, the proliferation of commercial activities, if left unchecked, might lead to excessive noise and crowding and unfair competition to local shopkeepers.

It is the role of town councils to enforce against the improper use of outdoor display areas, she said.

“We know that town councils have many roles and responsibilities to discharge and we leave it to the town councils to decide how to prioritise amongst these different responsibilities,” she said, adding that if there are instances of violation that need to be reported, HDB should be informed.