Sheng Siong locks horns with smaller players for HDB sites
Latest winning bids by smaller players came in as high as $20.65 psf.
Competition for new smaller HDB commercial units are still strong, UOB KayHian said. Supermarket giants like Sheng Siong are facing big competition with smaller players.
"Even though the competition for HDB commercial units remains stiff with the last three winning bids coming in as high as S$20.65 psf, the big players, NTUC Fairprice, SSG and Cold Storage, have conducted bidding in a more rational manner," UOB said
Smaller supermarket operators such as Yes and Ang Mo Supermarket have driven up prices for smaller HDB commercial units.
"We see this as an opportunity for SSG further down the road, because if these smaller players are unable to keep up with the high rent, big players may have an opportunity to secure units at more reasonable rates," the brokerage firm noted.