Singapore Real Estate and Property

Sunday, August 24, 2008

Haji Lane loses hip cult status

Aug 23, 2008

Haji Lane loses hip cult status

High rentals, poor business force shops to move out, as teens make it their hangout

By Zaidah Rahmat

It was the epicentre of cool three years ago. But now, Haji Lane in Kampong Glam has turned into a virtual ghost-town at night after several shop tenants moved out in recent months.

Rising rentals and a slowdown in customer traffic are to blame, say owners of its string of more than 40 fashion and lifestyle boutiques, secondhand shops and cafes.

Out of 16 shop owners Life! spoke to, 10 were affected by rental hikes. Many say their rentals have doubled from about two years ago.

Ms Eileen Fam, 32, owner of boutique Lola, relocated to Kandahar Street in May after her landlord doubled the rental of her 750 sq ft shop to $7,000 a month. 'It was too much. Landlords don't take into account that we get more people who browse than buy,' she says.

She is now paying about $5,000 for a 1,000 sq ft shop at Kandahar Street where she is enjoying better sales.

Haji Lane, once a sleepy back alley with textile shops and warehouses, received a severe injection of hip in 2005 when brands like Commes des Garcons set up shop there.

Almost overnight, a rash of chic, independent shops opened there, selling everything from limited-edition shoes to retro fabrics and ice cream.

Mr Ridhwan Ghany, owner of CD shop Straits Records, moved out in January last year when his landlord wanted to double the $2,000 monthly rental for his three-storey unit.

'Landlords think business is booming just because of the media hype, but it's not true,' he says. He has since moved to adjacent Bali Lane, where he pays about $1,700 for a 650 sq ft shop.

Other shopowners lament the watering down of the street's cult status as it gained publicity.

Fashion stylist Steven Kong, 34, who closed his boutique-cafe Lipstick Bandit recently due to poor business, says: 'The area became too commercialised. Too many shops moved in and the area just was not pleasant anymore.'

Mr Javier Tan, 30, owner of fashion concept store 3, has noticed an influx of teenagers to the street. 'Many customers feel the youngsters who hang out here are killing the culture of the place, turning it into another Far East Plaza,' he says.

'It's no longer exclusive. We're seeing fewer and fewer of the older crowd these days.'

Still, some retailers are optimistic about the street's future.

Ms Sharon Cher, 28, co-owner of boutique Soon Lee, says: 'We're sure Carnaby Street in London and Tribeca in New York didn't just happen overnight. Any community that grows organically needs time and space to develop.'

In fact, boutiques like Deon de Cruz are adopting strategies to accommodate the younger crowd. For one, they are stocking up on items that are more affordably priced.

The shop's co-owner Elaine Loh, 33, says: 'We normally source for our products in Taiwan, Japan, Korea and Hong Kong. But now, we're looking to China and Bangkok.'

The street may have lost its gloss but Mr Ameen Talib, president of the Kampong Glam Business Association, believes business will pick up.

'Now is the 'clearing up' period, so sit back and let things pass. After two years, the revival of Kampong Glam will begin and Haji Lane will inevitably be included,' he says.

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