SINGAPORE: In Kampong Glam, one of Singapore’s oldest conservation districts, rents have climbed sharply in recent years – in some cases nearly doubling.
For small businesses that once defined the area’s eclectic character, the increases are proving unsustainable.
Aggressive subletting practices have also exacerbated the surge in prices, observers say, with larger brands and tourist-oriented businesses with deeper pockets swooping in.
Designated a conservation area in 1989, Kampong Glam is a historical centre for Singapore’s Malay-Muslim community and encompasses a network of streets with distinct identities.
Arab Street remains home to traditional textile and carpet shops, while nearby Haji Lane has evolved over the years into a cluster of food-and-beverage outlets, lifestyle brands and creative retail concepts.
For those who remember the area a decade or more ago, it was a melting pot of music, art and fashion.
But for tenants today, the picture is far less rosy.
Honeybee, an ice cream shop that opened along Haji Lane in 2022, once made up to S$1,000 (US$777) a day on weekdays.
By mid-2025, daily takings had fallen by half. At the same time, rent had nearly doubled, with little room for negotiation as its lease approached expiry in December.
“We waited for the landlord. They never emailed, they never called,” recounted owner Hakim Ismail. He was then informed that the lease was not being extended, he told CNA in October.
He added that he discovered the unit was being renovated, along with a substantial rent increase. The new landlord, he said, was a corporate entity.
Honeybee shut its doors after its lease expired.
Honeybee, an ice cream shop that opened along Haji Lane in 2022, once made up to S$1,000 a day on weekdays.
Similar stories are common along the street, with several tenants reporting that their rents jumped from around S$3,000 to close to S$10,000 over the past few years.
Some businesses did not make it past their first year, with a few shuttering just weeks after launch.
Over the past three years, at least 10 shops along Haji Lane have closed.
One business that has managed to stay afloat is retail store Beau, which opened in 2012.
Retail store Beau has operated in Haji Lane since 2012.
Its owner Daryl Yan credits this to a more accommodating landlord.
“It’s all about supply and demand,” he said. “Especially when we saw a lot of foreign companies coming in … and they are willing to afford higher rental, which eventually causes the overall market price to edge up.”
Even with a supportive landlord now, Mr Yan believes future renewals are likely to follow the market.
Another practice is pushing rents even higher – subletting.
Currently, tenants are allowed to lease shophouse units from landlords and sublet them to others.
Several business owners told CNA that an individual they called a “serial subletter” is active in the area.
The person allegedly monitors leases nearing expiry, bids significantly above current rents to secure the unit, and then rents it out again at an even higher rate to other businesses.
This makes it impossible for existing tenants to match new offers, shopowners say.
International chains and brands have also become increasingly visible in Haji Lane – a shift that some local tenants say dilutes the area’s cultural value.
A souvenir shop along Haji Lane.
Among the most noticeable changes is the rise of souvenir shops.
In the past year alone, at least four such stores selling Singapore-inspired merchandise have opened along Haji Lane, replacing restaurants and clothing shops.
Several units are leased by a single owner and operated by sublet tenants.
One of them is Sinnkawa, which opened in July 2024. Its owner Soul Chen now runs four shops in the area.
“The reason why I've opened so many outlets is because I really like the area,” he said in Mandarin.
During peak tourist seasons, his shops can take in about S$10,000 a day. Their combined monthly rent is around S$60,000.
The business also supplies merchandise to large clients such as Haidilao and Popular.
Mr Chen said landlords typically rely on agents to manage relationships with tenants.
“The landlords are all very rich, so they don't really have time to come and deal with us,” he added.
Tourists along Haji Lane told CNA that souvenir shops were part of the appeal.
“There’s a lot of cute stuff,” one said. Another described the street as immersive, calling it “a unique experience”.
Korean-style self-photobooths along Haji Lane.
Another new entrant is Korean-style self-photobooths. Of the roughly 79 units along Haji Lane, about six are now photo studios offering various themes.
Such businesses catering directly to tourists appear better positioned to cope with rising rents, experts say. Around 15 per cent of Haji Lane’s units now fall into these categories.
Property consultancy Colliers attributes Kampong Glam’s sharper rental increases partly to tourism recovery.
Yearly median rents in the precinct have risen to about S$7.54 per square foot (psf) over the past year, up from about S$6.02 psf in 2023, according to its data.
That translates to a 25 per cent increase between 2023 and 2025, compared with smaller rises of about 5 per cent in Chinatown and Little India over the same period.
Location is another factor.
Kampong Glam sits near Bugis and the Central Business District, and new developments such as Guoco Midtown and Shaw Tower have added to its appeal.
In 2025 alone, seven shophouses were sold in Kampong Glam, amid strong island-wide demand.
According to Huttons Asia, shophouse transactions in the first nine months of 2025 rose about 10 per cent year-on-year, with many units bought by funds and institutional investors.
As long as interest rates remain low, analysts expect demand to persist.
Amid the shop closures, questions are growing about what it means to preserve Kampong Glam’s culture.
The Kampong Gelam Alliance (KGA), which brings together residents, business owners and cultural institutions, does not regulate rents.
Instead, it facilitates conversations between tenants and landlords, advocates for the area’s cultural value and works to increase footfall.
One proposal is to extend weekend road closures at Bussorah Street and Baghdad Street to weekdays, allowing for more frequent performances and events.
The alliance also plans to collaborate with businesses to organise activities tied to cultural periods such as the Islamic holy month of Ramadan.
It also hopes to draw more young people into the district – not just as visitors, but as entrepreneurs.
“I need youth to come in, not just volunteer. Let them start something over here. Start a business … sell something,” said Mr Syed Osman Alsagoff, KGA’s place director.
Most of the shophouses in Kampong Glam are owned by third- or fourth-generation descendants of Arab traders and former merchants.
Rising rents and a lack of successors have shuttered many such heritage retailers.
Along Arab Street, a handful of textile and kebaya shops remain.
One of them is Toko Aljunied, a pre-war shophouse that has served four generations of customers.
Owner Zahra Aljunied said many similar shops have closed, but her business has survived because she owns the premises.
Toko Aljunied owner Zahra Aljunied.
"If you compare 30, 40 years ago, there’s so many changes. We used to have a lot of F&B, people offering shisha … but those old shops that sell fabrics, I think they are left only a few."
Shisha tobacco has been banned in Singapore since November 2014. Retailers in areas including Kampong Glam were given until the end of July 2016 to finish their stock.
While Ms Zahra said she understands that lifestyles have changed and traditional clothing is no longer worn daily, she worries about the dilution of Malay-Muslim culture and cautioned against the influx of non-traditional businesses in the area.
She also works with tour guides and the KGA on exhibitions and kebaya fashion shows to ensure the public is educated about the culture.
Experts say heritage does not have to be frozen in time.
Professor Ho Puay Peng, UNESCO chair on architectural heritage conservation and management in Asia, said the area today “has very little to do with our own Southeast Asian Malay-Muslim heritage or lifestyle”, but added that this may not be the aim.
“Heritage conservation is not to preserve the past and make it like a museum,” he said.
Such districts should also avoid catering solely to tourists, he added, and take a more forward-looking approach.
For Kampong Glam, that means paying attention not just to physical conservation – such as shophouses and mosques – but also the intangible aspects such as cultural practices.
“How we curate, how we do the more intangible side of heritage with the tangible … that is what we need to help create,” Prof Ho said.
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For small businesses that once defined the area’s eclectic character, the increases are proving unsustainable.
Aggressive subletting practices have also exacerbated the surge in prices, observers say, with larger brands and tourist-oriented businesses with deeper pockets swooping in.
Designated a conservation area in 1989, Kampong Glam is a historical centre for Singapore’s Malay-Muslim community and encompasses a network of streets with distinct identities.
Arab Street remains home to traditional textile and carpet shops, while nearby Haji Lane has evolved over the years into a cluster of food-and-beverage outlets, lifestyle brands and creative retail concepts.
For those who remember the area a decade or more ago, it was a melting pot of music, art and fashion.
But for tenants today, the picture is far less rosy.
SMALL SHOPS PRICED OUT
Honeybee, an ice cream shop that opened along Haji Lane in 2022, once made up to S$1,000 (US$777) a day on weekdays.
By mid-2025, daily takings had fallen by half. At the same time, rent had nearly doubled, with little room for negotiation as its lease approached expiry in December.
“We waited for the landlord. They never emailed, they never called,” recounted owner Hakim Ismail. He was then informed that the lease was not being extended, he told CNA in October.
He added that he discovered the unit was being renovated, along with a substantial rent increase. The new landlord, he said, was a corporate entity.
Honeybee shut its doors after its lease expired.
Honeybee, an ice cream shop that opened along Haji Lane in 2022, once made up to S$1,000 a day on weekdays.
Similar stories are common along the street, with several tenants reporting that their rents jumped from around S$3,000 to close to S$10,000 over the past few years.
Some businesses did not make it past their first year, with a few shuttering just weeks after launch.
Over the past three years, at least 10 shops along Haji Lane have closed.
One business that has managed to stay afloat is retail store Beau, which opened in 2012.
Retail store Beau has operated in Haji Lane since 2012.
Its owner Daryl Yan credits this to a more accommodating landlord.
“It’s all about supply and demand,” he said. “Especially when we saw a lot of foreign companies coming in … and they are willing to afford higher rental, which eventually causes the overall market price to edge up.”
Even with a supportive landlord now, Mr Yan believes future renewals are likely to follow the market.
Related:
“SERIAL SUBLETTING”
Another practice is pushing rents even higher – subletting.
Currently, tenants are allowed to lease shophouse units from landlords and sublet them to others.
Several business owners told CNA that an individual they called a “serial subletter” is active in the area.
The person allegedly monitors leases nearing expiry, bids significantly above current rents to secure the unit, and then rents it out again at an even higher rate to other businesses.
This makes it impossible for existing tenants to match new offers, shopowners say.
International chains and brands have also become increasingly visible in Haji Lane – a shift that some local tenants say dilutes the area’s cultural value.
A souvenir shop along Haji Lane.
SOUVENIR SHOPS, PHOTOBOOTHS EYE TOURIST DOLLARS
Among the most noticeable changes is the rise of souvenir shops.
In the past year alone, at least four such stores selling Singapore-inspired merchandise have opened along Haji Lane, replacing restaurants and clothing shops.
Several units are leased by a single owner and operated by sublet tenants.
One of them is Sinnkawa, which opened in July 2024. Its owner Soul Chen now runs four shops in the area.
“The reason why I've opened so many outlets is because I really like the area,” he said in Mandarin.
During peak tourist seasons, his shops can take in about S$10,000 a day. Their combined monthly rent is around S$60,000.
The business also supplies merchandise to large clients such as Haidilao and Popular.
Mr Chen said landlords typically rely on agents to manage relationships with tenants.
“The landlords are all very rich, so they don't really have time to come and deal with us,” he added.
Tourists along Haji Lane told CNA that souvenir shops were part of the appeal.
“There’s a lot of cute stuff,” one said. Another described the street as immersive, calling it “a unique experience”.
Korean-style self-photobooths along Haji Lane.
Another new entrant is Korean-style self-photobooths. Of the roughly 79 units along Haji Lane, about six are now photo studios offering various themes.
Such businesses catering directly to tourists appear better positioned to cope with rising rents, experts say. Around 15 per cent of Haji Lane’s units now fall into these categories.
WHY KAMPONG GLAM RENTS ARE RISING
Property consultancy Colliers attributes Kampong Glam’s sharper rental increases partly to tourism recovery.
Yearly median rents in the precinct have risen to about S$7.54 per square foot (psf) over the past year, up from about S$6.02 psf in 2023, according to its data.
That translates to a 25 per cent increase between 2023 and 2025, compared with smaller rises of about 5 per cent in Chinatown and Little India over the same period.
Location is another factor.
Kampong Glam sits near Bugis and the Central Business District, and new developments such as Guoco Midtown and Shaw Tower have added to its appeal.
In 2025 alone, seven shophouses were sold in Kampong Glam, amid strong island-wide demand.
According to Huttons Asia, shophouse transactions in the first nine months of 2025 rose about 10 per cent year-on-year, with many units bought by funds and institutional investors.
As long as interest rates remain low, analysts expect demand to persist.
Related:
LOSS OF CULTURAL HERITAGE?
Amid the shop closures, questions are growing about what it means to preserve Kampong Glam’s culture.
The Kampong Gelam Alliance (KGA), which brings together residents, business owners and cultural institutions, does not regulate rents.
Instead, it facilitates conversations between tenants and landlords, advocates for the area’s cultural value and works to increase footfall.
One proposal is to extend weekend road closures at Bussorah Street and Baghdad Street to weekdays, allowing for more frequent performances and events.
The alliance also plans to collaborate with businesses to organise activities tied to cultural periods such as the Islamic holy month of Ramadan.
It also hopes to draw more young people into the district – not just as visitors, but as entrepreneurs.
“I need youth to come in, not just volunteer. Let them start something over here. Start a business … sell something,” said Mr Syed Osman Alsagoff, KGA’s place director.
Most of the shophouses in Kampong Glam are owned by third- or fourth-generation descendants of Arab traders and former merchants.
Rising rents and a lack of successors have shuttered many such heritage retailers.
Along Arab Street, a handful of textile and kebaya shops remain.
One of them is Toko Aljunied, a pre-war shophouse that has served four generations of customers.
Owner Zahra Aljunied said many similar shops have closed, but her business has survived because she owns the premises.
Toko Aljunied owner Zahra Aljunied.
"If you compare 30, 40 years ago, there’s so many changes. We used to have a lot of F&B, people offering shisha … but those old shops that sell fabrics, I think they are left only a few."
Shisha tobacco has been banned in Singapore since November 2014. Retailers in areas including Kampong Glam were given until the end of July 2016 to finish their stock.
While Ms Zahra said she understands that lifestyles have changed and traditional clothing is no longer worn daily, she worries about the dilution of Malay-Muslim culture and cautioned against the influx of non-traditional businesses in the area.
She also works with tour guides and the KGA on exhibitions and kebaya fashion shows to ensure the public is educated about the culture.
Related:
BALANCING THE PAST WITH THE FUTURE
Experts say heritage does not have to be frozen in time.
Professor Ho Puay Peng, UNESCO chair on architectural heritage conservation and management in Asia, said the area today “has very little to do with our own Southeast Asian Malay-Muslim heritage or lifestyle”, but added that this may not be the aim.
“Heritage conservation is not to preserve the past and make it like a museum,” he said.
Such districts should also avoid catering solely to tourists, he added, and take a more forward-looking approach.
For Kampong Glam, that means paying attention not just to physical conservation – such as shophouses and mosques – but also the intangible aspects such as cultural practices.
“How we curate, how we do the more intangible side of heritage with the tangible … that is what we need to help create,” Prof Ho said.
Continue reading...