Review of Operation of Reinstatement Clauses for HDB Commercial Leases

Debated in Parliament on 4 Nov 2019.

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Leon Perera proposed a review of HDB commercial lease reinstatement clauses to introduce cost sharing between outgoing and incoming tenants and to limit reinstatement to when there is an incoming tenant, aiming to reduce costs and environmental impact.
Lawrence Wong explained that HDB requires outgoing tenants to reinstate premises to ensure they are ready for new tenants who can then customize the space, but allows retention of certain fixtures and fittings that are in good condition and useful to the next tenant.
The government’s current approach balances the need for premises readiness with efforts to reduce wastage and costs by permitting the retention of approved and functional fixtures and fittings.

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Leon Perera

Mr Leon Perera asked the Minister for National Development whether the Government will review the operation of reinstatement clauses for HDB commercial leases with a view to (i) requiring some cost sharing for reinstatement between outbound and inbound tenants and (ii) requiring reinstatement to be done only when there is an inbound tenant so as to better utilise existing structures and reduce the cost and environmental impact of wholesale reinstatement of premises.

Lawrence Wong

HDB's tenancy agreements require outgoing tenants to reinstate the premises before returning the premises to HDB, as all of these units will be released back to the market and taken up by new tenants. So, the reinstatement allows the incoming tenants to take over the premises quickly and gives them the flexibility to renovate the shop space based on their unique needs and requirements.

Nonetheless, to reduce wastage and costs, HDB is prepared and has allowed outgoing tenants to retain fixtures and fittings which are (a) in good and tenantable condition; (b) approved by the relevant authorities; and (c) deemed to be of use to the next tenant. Generally, these include common fixtures and fittings, such as floor tiles, power points and toilet fittings and fixtures.

Summary written by AI (learn more)

Leon Perera proposed a review of HDB commercial lease reinstatement clauses to introduce cost sharing between outgoing and incoming tenants and to limit reinstatement to when there is an incoming tenant, aiming to reduce costs and environmental impact.
Lawrence Wong explained that HDB requires outgoing tenants to reinstate premises to ensure they are ready for new tenants who can then customize the space, but allows retention of certain fixtures and fittings that are in good condition and useful to the next tenant.
The government’s current approach balances the need for premises readiness with efforts to reduce wastage and costs by permitting the retention of approved and functional fixtures and fittings.

Questions identified by AI (learn more)

Review of Operation of Reinstatement Clauses for HDB Commercial Leases | PAPERCUTS

Review of Operation of Reinstatement Clauses for HDB Commercial Leases

Debated in Parliament on 4 Nov 2019.

Summary written by AI (learn more)

Leon Perera proposed a review of HDB commercial lease reinstatement clauses to introduce cost sharing between outgoing and incoming tenants and to limit reinstatement to when there is an incoming tenant, aiming to reduce costs and environmental impact.
Lawrence Wong explained that HDB requires outgoing tenants to reinstate premises to ensure they are ready for new tenants who can then customize the space, but allows retention of certain fixtures and fittings that are in good condition and useful to the next tenant.
The government’s current approach balances the need for premises readiness with efforts to reduce wastage and costs by permitting the retention of approved and functional fixtures and fittings.

Questions identified by AI (learn more)

Full Transcript

Leon Perera

Lawrence Wong

Summary written by AI (learn more)

Leon Perera proposed a review of HDB commercial lease reinstatement clauses to introduce cost sharing between outgoing and incoming tenants and to limit reinstatement to when there is an incoming tenant, aiming to reduce costs and environmental impact.
Lawrence Wong explained that HDB requires outgoing tenants to reinstate premises to ensure they are ready for new tenants who can then customize the space, but allows retention of certain fixtures and fittings that are in good condition and useful to the next tenant.
The government’s current approach balances the need for premises readiness with efforts to reduce wastage and costs by permitting the retention of approved and functional fixtures and fittings.

Questions identified by AI (learn more)

Review of Operation of Reinstatement Clauses for HDB Commercial Leases

Summary

Questions Identified

Full Transcript

Leon Perera

Lawrence Wong

Summary

Questions Identified

Review of Operation of Reinstatement Clauses for HDB Commercial Leases

Summary

Questions Identified

Full Transcript

Leon Perera

Lawrence Wong

Summary

Questions Identified