The future of Singapore’s most prominent used-car trading hub currently rests on a razor-thin margin of collective cooperation. All 76 unit owners at the Automobile Megamart (AML) in Ubi have until May 15 to collectively secure and pay a Singapore Land Authority (SLA) premium of $68 million to renew their lease through 2040.
The stakes are absolute: if the full amount is not paid by the deadline, the owners will be required to vacate the premises by July 18. For the 121 showrooms and offices operating within the eight-storey complex, the situation is a financial and operational gamble, as the renewal requires unanimous participation. A single owner failing to meet their financial obligation could potentially collapse the entire deal for every other tenant in the building.
Located in the Ubi industrial area near Paya Lebar Air Base, the Automobile Megamart serves as the primary ecosystem for the nation’s used-car trade, housing a dense mix of dealerships, vehicle leasing firms, and financing offices. The site’s original 30-year lease was awarded in 1996, and the facility officially opened its doors in 2000.
The cost of staying in Ubi
The $68 million renewal bill is not split equally; instead, the burden is distributed based on the size and strategic location of each unit. This creates a tiered financial pressure across the building’s strata.
Ground-floor showrooms, which benefit from maximum visibility and foot traffic, face the steepest costs, with some owners expected to pay nearly $1 million. Those on the higher floors are looking at payments around $500,000, while office units located between the sixth and eighth floors will contribute up to $200,000.
This financial hurdle has already begun to reshape the building’s occupancy. Some older owners, anticipating retirement from the trade, have opted to sell their units rather than invest in a long-term lease extension. Some units currently sit empty, as owners find it nearly impossible to attract new tenants for short-term rentals while the building’s long-term status remains in limbo.
Mr Raymond Tang from Yong Lee Seng Motor, who chairs the lease renewal committee, is glad for the lease extension offer and the additional time given for owners to produce payment.
ST PHOTO: CHONG JUN LIANG
A volatile timeline of negotiations
The road to the May 15 deadline has been marked by repeated delays and a failure to reach a consensus. The SLA has been in discussions with AML owners since March 2024, but the process has been fraught with disagreement.
An initial renewal offer issued on June 16, 2025, lapsed on November 20, 2025, given that the unit owners could not reach a unanimous agreement. This led the SLA to issue a second offer on January 7, 2026, which carried a price increase of $1.9 million over the original proposal.
| Date | Event | Outcome/Status |
|---|---|---|
| March 2024 | SLA begins renewal discussions | Initiation of process |
| June 16, 2025 | First renewal offer issued | Lapsed Nov 20, 2025 |
| Jan 7, 2026 | Second renewal offer issued | Price increased by $1.9 million |
| May 15, 2026 | Final payment deadline | Full $68m payment required |
| July 18, 2026 | Current lease expiry | Vacate premises if renewal fails |
The most recent extension was granted following a March 20 meeting, where representatives explained that several units had recently changed hands. These new owners required additional time to secure the necessary financing to meet their share of the premium.
Why dealers are fighting to stay
For many in the trade, the Automobile Megamart is viewed as irreplaceable. Dealers argue that the hub’s concentration of inventory and accessibility for buyers creates a “one-stop-shop” effect that cannot be replicated in smaller, scattered centers. Henry Heng of Prime Car Traders noted that the building’s tenant mix and parking features make it the only proper used-car center in the city, stating he has no fallback plan should the renewal fail.
Beyond the commercial advantage, a successful renewal would allow the owners to finally invest in the building’s infrastructure. Mike Wee, chairman of the management corporation strata title of AML, indicated that essential overhauls to the building’s electrical and mechanical systems are on hold until the lease is secured.
Dealers like Mr Tan Wee Yong of MyCar said the building is unique and better suited for the trade than anywhere else.
ST PHOTO: CHONG JUN LIANG
The broader Ubi landscape and the ‘Motor Belt’
The tension at AML reflects a wider trend of lease uncertainty in the Ubi area. Several nearby sites, including 20 Ubi Road 4 and 7 Ubi Close, have been operating on temporary rental arrangements with the SLA since their leases expired. While the SLA has indicated a willingness to consider extending these tenancies, the general government policy remains to allow commercial leases to expire so land can be reallocated to meet evolving socio-economic needs.
Some major players are already pivoting away from Ubi. The Eurokars Group, which operates a Mazda showroom and service center at 5 Ubi Close, has decided not to renew its lease. Executive chairman Karsono Kwee stated that the group will instead invest in properties along the Leng Kee belt, which he describes as the more premium motor belt in Singapore, offering longer remaining lease terms.
This shift highlights the divide between the specialized used-car hub model of AML and the high-conclude new-car dealership clusters found in other parts of the city.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice regarding commercial real estate or leasehold investments.
The next critical checkpoint for the Automobile Megamart is the May 15 payment deadline. Should the $68 million be successfully remitted, the owners will then move into the technical phase of the renewal, which includes mandatory land and strata lot surveys to be completed before the current lease expires in July.
We invite readers to share their thoughts on the evolution of Singapore’s automotive hubs in the comments below.
