Senja Close EC™

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July 23, 2021Resale HDB flat prices rise 3.1% in Q2:HDBJuly 28, 2021Raising the game to stay aheadAugust 12, 2021The government will inject new HDB shops to meet rising demand in existing estates, according to Senior Minister of State for National Development Sun Xueling. She added that this might include selectively acquiring privately held HDB shops, if necessary. Sun also mentioned that there will be an overall increase in the supply of HDB shops, with a higher proportion to be directly rented out by HDB. Presently, there are an estimated 15,500 HDB shops in Singapore, of which 55% have been sold to private owners and the rest are leased by HDB. However, the government stopped selling HDB shops in 1998.Only about 740 of the privately held shops were sold on 30-year leases, with more than 80% having less than 10 years left. Sun mentioned that these units will be returned to HDB and leased out in the future. In contrast, 7,700 privately owned shops were sold on 99-year leases, with most having more than 30 years left on their lease. Sun was in Parliament on Sept 24 to address the recent reports of increasing commercial rents among HDB shops in existing estates. In her speech, Sun said that the average psf rent for HDB shops had increased to $28.50 in 1H2025. The average psf rent in newer estates had also increased from $12.30 in 2020 to $39.30 in 1H2025. This was due to the newer estates being more attractive to businesses. So far, the government has been leasing out most shops solely based on price. In order to improve quality outcomes and reduce bidding pressure, HDB and MOH have implemented a pilot of the price-quality method in tenders for GP clinics since May. This method was used in the tender for a GP clinic in Bartley Beacon, a BTO project in the Bidadari estate that was completed in June. The 1,076 sq ft GP clinic at Bartley Beacon was awarded to Bridgepoint Health with a monthly rent bid of $18,000, lower than the average bid of $35.50 psf for GP clinics in new housing projects in the past three years.HDB is also implementing a price-quality tender for shops leased by them, with 60% of the evaluation done based on the quality of the operator, including its track record and community initiatives. The government also engages professional third-party valuers to assess the rent for each unit based on recent rents and market conditions. Sun also addressed concerns that sublet rents could increase more rapidly than what HDB charges its main tenants. She assures that HDB will keep a close eye on the situation and look for ways to better inform the public and those affected.