The Housing Development Board (HDB) is stepping up its game to tackle soaring rents for heartland commercial units, with plans to selectively acquire privately-owned HDB shops. This announcement came from Senior Minister of State for National Development Sun Xueling during a parliamentary session on 24 September 2024.
Rising Rental Rates in Heartlands
According to reports, rental rates for privately-held HDB shops have seen a staggering increase, more than doubling over the past year. While the average rent for these units shot up from S$3.51 to S$7.34 per square foot, HDB shops leased directly by the government have maintained stable rents.
- 740 privately-owned HDB shops are on 30-year leases—80% of which have less than 10 years remaining.
- 7,700 privately-held HDB shops still have over 30 years on their 99-year leases.
- 90% of HDB’s directly leased units haven’t seen rental increases for the past five years.
Plans for New Supply
Sun highlighted that HDB will inject new retail supply to meet existing demands in estates. The approach includes potentially acquiring private units to ensure heartland businesses remain viable. “We will continue to monitor the situation and explore appropriate ways to provide more information to all stakeholders,” she said.
Medical Facilities and Tender Reforms
Furthermore, the rising rental rates for medical facilities were addressed. In 2020, the average rent was S$10.40 per square foot; this jumped to S$28.50 in the first half of 2025. To make renting more competitive, HDB, along with the Ministry of Health, is piloting a price-quality method in tenders for GP clinics, where quality factors will now weigh more heavily than just bid price.
The first tender awarded under this framework resulted in a winning bid of S$16.70 per square foot at Bartley Beacon, significantly lower than the average of S$35.50 from previous tenders.
Commitment to Affordable Rents
Ms Sun reiterated the government’s commitment to keeping rents affordable, especially amidst rising costs in private markets. “Through various measures, HDB will strive to keep rental rates stable for all its units,” she concluded, assuring that the situation will be closely monitored to safeguard the interests of small businesses and residents alike.