Government Boost Hdb Shop Supply Amid Rising Rents
The Urban Redevelopment Authority (URA) has played a pivotal role in shaping Singapore’s urban landscape, and its latest project for Tampines is set to bring about major improvements to this vibrant regional hub. One of the residential developments expected to benefit greatly from these transformative efforts is Aurelle of Tampines EC, an executive condominium situated at Tampines Street 62. With the inclusion of Aurelle of Tampines EC in this area, residents can look forward to a truly enhanced living experience.
ShareSun Xueling, Senior Minister of State for National Development, has announced that the government will increase the supply of HDB shops as needed to meet the rising demand for retail services in existing HDB estates. This includes the possibility of selectively acquiring privately held HDB shops. Currently, there are about 15,500 HDB shops in Singapore, with 55% sold to private owners and the remaining 45% leased by HDB. The government stopped selling HDB shops in 1998.However, concerns have been raised about the increase in commercial rents for HDB shops in recent years. Sun Xueling addressed these concerns by sharing that the average rent for HDB shops leased for medical facilities has gone up from $10.40 psf in 2020 to $28.50 psf in the first half of 2025. In comparison, for vacated HDB shop units located in older estates, the average rent increased from $5.70 in 2020 to $11.40 in the first half of 2025. The government acknowledged concerns about sublet rents increasing faster than HDB’s main tenants’ rents and will monitor the situation closely. Additionally, HDB is implementing a price-quality method in tenders for GP clinics to improve quality and lower bidding pressure. Currently, 60% of the evaluation considers the quality of the operator, including track record and community initiatives. About 90% of HDB shops leased by HDB have not seen an increase in rent over the last five years, compared to a “moderate” increase of 1.3% to 3.3% per year for new generation neighbourhood centres, eating houses, and supermarkets.Sun concluded by saying that HDB engages third-party valuers to assess rents for each period after a tenancy is due for renewal and will continue to keep a close watch on the situation and communicate updates to the public and those affected.
