New Rules Require 6-Year Rent Commitment for HDB Shops

Successful bidders for new Housing and Development Board (HDB) shop tenders in Singapore must now commit to a six-year rental agreement, an increase from the previous three-year term. This change, announced on January 10, 2024, aims to promote responsible bidding practices among tenderers.

The HDB stated, “By requiring tenderers to commit to tendered rent over a longer period, our aim is to encourage tenderers to bid prudently.” The new regulation responds to growing concerns regarding rising rental bids in HDB estates. Notably, a record-high monthly rental bid of S$52,000 was recently placed for a clinic at Block 954C Tampines Street 96. The successful bid, made by I-Health Medical Holdings in January 2023, represents the highest per square foot rent for general practitioner and dental clinics of this size to date.

Under the previous system, when a three-year tenancy approached renewal, professional valuers appointed by HDB assessed the rent for the upcoming period. This assessment considered recent rents of comparable premises and prevailing market conditions. According to the Ministry of National Development (MND), rental rates for 90 percent of HDB rental shops remained stable over the past five years.

As of August 2025, Singapore has approximately 15,500 HDB shops. Of these, around 7,000 are rented out by HDB, while about 8,500 are privately owned. Notably, HDB ceased selling these shops in 1998 and currently rents them directly to businesses.

The ministry also acknowledged a significant increase in per square foot rental rates for privately owned HDB shops. Approximately 740 privately held HDB shops have been sold with 30-year leases, with over 80 percent having less than 10 years remaining. These will eventually be returned to HDB for rental purposes. The remaining privately owned shops, totaling around 7,700, were sold with 99-year leases and still have over 30 years left.

In response to the evolving retail landscape, HDB plans to continue providing new shops in upcoming public housing developments. The ministry indicated it would also consider selectively acquiring privately held HDB shops to meet ongoing demand in existing estates.

This adjustment in rental commitment reflects HDB’s strategy to ensure more sustainable and manageable bidding practices while addressing the dynamic needs of Singapore’s retail environment.