Increased rentals bite deep, but Geylang Ramadan bazaar vendors still hope to turn a profit
Vendors are bullish about their chances of making a profit at the Geylang Ramadan bazaar despite an increase in rental rates this year.
Rent for booths and tents at the popular Ramadan shopping spot has increased due to the addition of a new bidder to the tender process. The new player who joined the fray is believed to have forced regular contractors to increase their bids in order to secure spots at the bazaar. This cost is expected to be passed on to vendors who rent stalls from contractors.
While the bazaar organisers at the Geylang Serai Community Centre have not responded to Yahoo Singapore’s queries, some vendors and contractors spoke to us about the rise in rental costs and the various measures they have taken to overcome it.
The cost of renting a booth at one of Singapore’s oldest and most popular Ramadan bazaars depends on three main things: size, popularity of location determined by human traffic flow and whether vendors will be selling food or not (rent is higher for food vendors).
Shereen Noor, the owner of popular local henna and Indian bridal services, Saheli Bridal, said the monthly cost of renting booths at the bazaar has increased by about 50 per cent over the last 15 years.
This year, she is paying about $18,000 for three 9m x 9m booths located at the field beside the Paya Lebar MRT station. She decided to book three booths this year after suffering a 20 per cent loss in 2014, when she had five booths.
29-year-old Shereen, who has been in charge of her family business ever since she took over from her mother when she was 18, is determined to soldier on with the Ramadan business despite the rising cost of rent.
“Saheli will continue to have stalls at the Geylang bazaar. We just need to be sure we have more advertisements and promotions,” said the henna artiste, who offers traditional and instant colour henna services for prices starting from $5.
Shereen doesn’t expect much profits this year though and is aiming to “at least break even".
Higher rentals, smaller spaces
Jimmy, a contractor from HJ events, paid more than $100,000 this year to secure tents along Haig Road, near Kampong Ubi Community Centre and a portion of the area outside Tanjong Katong Complex - 25 per cent more than the $80,000 he paid last year.
As a result, Jimmy, who has been a contractor for more than 10 years, has brought up rental costs for his booths along Haig Road by $1,000. This year, each 2.7 sq/m-sized booth will cost $7,000 a month.
He estimates a 10 per cent profit, which will help him recover from the 20 per cent loss he suffered last year.
Sub-contractor Mohamed Mustaffa of En Niche Events, meanwhile, says he’ll continue to keep rental costs affordable for his vendors despite the increasing cost.
Mustaffa, who has been a sub-contractor for three years, claims to provide the cheapest booths in the whole of Geylang’s Ramadan Bazaar, with rental costs starting from $1,350 per month for 1.5 sq/m booths. He is compensating for the small size of his booths by providing amenities such as power supply, carpet flooring, tables and chairs, among others.
“This year, the price increased a lot because there was another entity that bid for a much higher price. I have to pay about $100,000. Over the years, the price has increased by 10 per cent, which might sound small but it is actually a lot,” said the 31-year-old businessman.
Keeping up with trends
C.A. Chua, owner of Kala Thai Coconut Ice Cream, is probably one of the very few vendors at the Geylang Ramadan Bazaar who is confident that his business will do well this year.
The owner of the latest food fad will be having two 6m x 3m booths instead of three this year, located at the field beside Paya Lebar MRT station. He has paid $18,000 for all of them.
“Due to the high rent - because the organiser keeps bidding higher every year - I feel profits will be lower this year compared to 2014. Maybe about 10 to 15 per cent. I had higher profits last year,” said the 50-year-old.
Chua still feels pretty good about business this year, noting that a formerly congested road nearby has been closed off, allowing for more human traffic flow.
The bazaar this year will take place throughout Ramadan, between 18 June and 16 July.
Minimum rental costs per booth at Geylang’s Ramadan bazaar (2015) | ||||
Contractors | Location | Rental cost ($) | Size per booth | |
Food Vendors | Non-food vendors | |||
AYE Concepts | Large field beside Paya Lebar MRT station | 7,000 | 2,500 | unknown |
HJ Events | Along Haig Road |
| 7,000 | 2.7m x 2.7m |
Kampong Ubi |
| 3,000 | 2.7m x 2.7m | |
Outside Tanjong Katong Complex |
| 3,500 | 2.7m x 2.7m | |
En Niche Events | Outside Tanjong Katong Complex |
| 1,350 | 1.5m x 1.5m |
Orange Events | Outside Tanjong Katong Complex |
| 5,500 | 3m x 3m |
MegaExpress International | Outside Paya Lebar Singapore Post |
| 4,100 | 3m x 2m |