90% of HDB-let shop rents unchanged in past 5 years; government aware of ‘steep increase’ in privately owned shop rents
Average rents for HDB-let shops rose by between 1.3 and 3.3% annually over the last three years
[SINGAPORE] Over the past five years, the Housing and Development Board (HDB) has not raised rents for 90 per cent of the shops that it rents out, said Senior Minister of State for National Development Sun Xueling on Wednesday (Sep 24).
But the government is aware that per-square-foot rents for privately owned shops have “seen a steep increase”, she noted. “Their rents are determined by their respective owners, similar to any other private property.”
This coincides with a rise in the share of rental transactions involving smaller units, which tend to command higher per-square-foot rents, she said.
Rents for HDB-let shops have risen more moderately, with average increases of between 1.3 and 3.3 per cent annually over the last three years.
Sun was responding to Members of Parliament who asked about trends in HDB shop rental increases; comparisons between HDB-let and privately sublet shops; and whether supply constraints are driving up rents.
Of some 15,500 HDB shops islandwide, about 7,000 are rented out by HDB – typically for a period of three years – while 8,500 were sold and are thus now privately owned.
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HDB stopped selling its shops in 1998, said Sun.
Of privately owned shops, 740 were sold on 30-year leases, of which more than 80 per cent have less than 10 years of lease left. These will be progressively returned to HDB.
The remaining 7,700 shops were sold on 99-year leases and still have more than 30 years left.
On subletting rents, Sun said HDB does not currently collect such data, as that is part of contractual agreements between tenants and sub-tenants.
“We understand the concerns that subletting rents could increase more significantly than what HDB charges the main tenant,” she said. “HDB will continue to monitor the situation and explore appropriate ways to provide more information to all stakeholders.”
HDB will continue to provide new shops in upcoming public housing developments and add retail supply in existing estates where needed, “including the option of selectively acquiring privately held HDB shops if needed”, said Sun.
Overall, the supply of HDB shops will rise, with a larger share to be rented out directly by HDB.
In response to a supplementary question from Member of Parliament Henry Kwek (Kebun Baru SMC) on whether essential trades such as cooked food stalls would be prioritised, Sun said such services would receive closer scrutiny.
She reiterated that HDB may step in to acquire shops if supply of essential services – such as food or medical care – is lacking in an area, but stressed that market forces should generally be allowed to play out.
GP clinic rentals
Sun also gave an update on HDB shop rents for medical facilities.
Average rents per square foot rose from S$10.40 in 2020 to S$28.50 in the first half of 2025, with higher rates in newer estates compared to older ones.
“Until recently, we have been letting out most shop units for general practitioner (GP) clinics based purely on price,” she said.
To moderate bidding pressure and improve service quality, HDB and the Ministry of Health began piloting Price-Quality Method tenders for GP clinics in May.
The first, at Bartley Beacon HDB estate along Mount Vernon Road, was awarded at S$16.70 per square foot – less than half the recent market average.
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