199. Ms Mariam Jaafar: To ask the Minister for National Development (a) for each year in the past three years, what has been the year-on-year increase in average rental per square foot for HDB commercial units (i) rented directly from HDB (ii) sublet from a master tenant that rents from HDB and (iii) sublet from a private owner, respectively; and (b) whether HDB is considering approaches to keep rental rates in check in each of these categories. 

334. Mr Louis Chua: To ask the Minister for National Development for each of the past five years, including 2025 to date, what is the average rent per square metre and average rent quantum for commercial units successfully tendered out by HDB that year for medical facilities (i) island-wide (ii) within existing HDB blocks and (iii) within new BTO developments, respectively. 

75. Mr Henry Kwek: To ask the Minister for National Development (a) whether an update can be provided on HDB’s efforts to keep the rent of HDB shops affordable, in particular those selling cooked food or providing medical services; and (b) whether HDB is exploring ways to moderate rental increases in high-rent areas, including by increasing the supply of HDB-owned shops.  

79. Mr Ang Wei Neng: To ask the Minister for National Development (a) as of August 2025, how many HDB shops are (i) sold and (ii) rented out directly by HDB respectively; (b) how many HDB shops which have been sold have a remaining lease of less than 10 years, as of August 2025; and (c) whether the recent steep rise in the rent of privately held HDB rental shops is due to a shortage in supply of HDB shops. 

Answer: 

Mr Speaker Sir, may I have your permission to answer questions 11 -14 in today’s Order Paper together?    

Mr Speaker, several other Members have also raised similar questions on HDB shops for a response at subsequent sittings. My response will also address these questions from Mr Foo Cexiang, and Mr Yip Hon Weng.   

HDB plans its towns and estates comprehensively to ensure that residents have convenient access to affordable goods and services. A key measure is to ensure a good supply of shops in every HDB estate and town, so that there is healthy competition. As of August 2025, there are around 15,500 HDB shops in Singapore. Of these, about 8,500 are sold and hence privately-owned, and about 7,000 are rented out by HDB.   

HDB Rental Shops  

For shops rented out by HDB, there are various measures in place to keep rents stable.  

All shops are typically rented out by HDB for a period of three years. When an existing tenancy is due for renewal, the rent for the next tenancy period is assessed by professional valuers appointed by HDB, taking into account recent rents of comparable premises in the vicinity, as well as prevailing market and local conditions. Under this approach, rents in 90% of HDB rental shops have not seen an increase in rents in the last five years. Over the last three years, average rents increased at a moderate pace of between 1.3% and 3.3% per year.   

For all new-generation neighbourhood centres, new eating houses and new supermarkets, HDB applies Price-Quality Method (PQM) tenders, with 60% of points assigned to the Quality of the operator, which includes aspects such as good track record and community initiatives. Such tenders allow HDB to holistically evaluate both price and quality factors, instead of simply awarding to the highest price bids.  

HDB Sold Shops  

As for HDB shops that are sold, their rents are determined by their respective owners, similar to any other private properties.  

We are aware that per square foot rents for privately-owned HDB shops have seen a steep increase recently. This coincided with a higher proportion of rental transactions involving smaller size units, which tend to command higher per square foot rents.  

Remaining Leases of HDB Sold Shops  

HDB ceased the sale of HDB shops in 1998 and now rents out shops to businesses directly. There are around 740 privately-owned HDB shops sold on 30-year leases, more than 80% of which have less than 10 years of lease remaining. These shops will progressively be returned to HDB and tenanted out.   

The remaining around 7,700 privately-held HDB shops were sold on 99-year leases, and still have more than 30 years of lease remaining. 

HDB will continue to provide new shops in new public housing developments. We will also inject new retail supply to meet demand in existing estates, where necessary, including the option of selectively acquiring privately-held HDB shops if needed. Overall, we will see an increase in the supply of HDB shops, a higher proportion of which will be directly rented out by HDB.  

HDB shops tendered out for medical facilities  

On the rents for HDB shops tendered out for medical facilities, I will provide the average rent per square foot. This is because shop units can be of different sizes, and the absolute rent quantum therefore does not provide a meaningful comparison. The average rent per square foot was $10.40 in 2020, $10.00 in 2021, $16.80 in 2022, $17.50 in 2023, $22.70 in 2024 and $28.50 in the first half of 2025. For vacated units in existing HDB blocks, which are typically in older estates, the average rent per square foot increased from $5.70 in 2020 to $11.40 in the first half of 2025. In comparison, the average rent per square foot is higher for new lettings in BTO developments, which increased from $12.30 in 2020 to $39.30 in the first half of 2025. The difference is mainly due to the fact that these new leases are located in newer residential areas, the shop units are newer and considered more attractive by businesses.  

Until recently, we have been letting out most shop units for General Practitioner (GP) clinics based purely on price. To improve quality outcomes and lower bidding pressure, HDB and MOH started piloting PQM tenders for GP clinics since May this year, with 70% of points assigned to the Quality of the operator. For the first PQM tender awarded to a GP clinic in Bartley Beacon, the awarded rent was $16.70 per square foot, which is lower than the average awarded bid of $35.50 per square foot for designated GP clinic tenders in new housing projects awarded in the last three years.  

Rents of Sublet Shops  

On subletting rents, HDB currently does not collect these data, which are part of the contractual agreements between HDB’s tenants and their sub-tenants. We understand the concerns that subletting rents could increase more significantly than what HDB charges the main tenant. HDB will continue to monitor the situation and explore appropriate ways to provide more information to all stakeholders.