SINGAPORE — The Housing and Development Board (HDB) has updated its commercial rental framework, requiring successful bidders for new HDB shop tenders to commit to their tendered rent for six years — double the previous three-year requirement. The change, which took effect on 10 January 2026, is aimed at encouraging more prudent bidding and stabilising rental levels across HDB estates. 

Under the revised arrangement, tenants awarded new shop licences must now maintain the rent they bid for two consecutive tenancy terms — each term spans three years — before any reassessment is carried out. Previously, rent commitments were only secured for the initial three-year term. HDB said the extended tenure will help temper overly aggressive bids and promote long-term planning among operators. 

The policy adjustment follows concerns about rising rental bids for commercial units within public housing precincts. In 2025, a general practitioner’s clinic in Tampines made headlines by clinching a lease with a record-high monthly bid, spotlighting the need for a more sustainable tendering approach. 

There are approximately 15,500 HDB shops across Singapore, with around 7,000 directly rented out by HDB and the remainder privately owned. The board noted that while private owners determine their own rental rates, the extended commitment for HDB-tendered shops should help moderate rent volatility and ensure stable access to community retail and service facilities. 

The Ministry of National Development has previously explained that when tenancy renewals occur under the older system, professional valuers would assess market rent before setting new terms. With the new six-year rule, such assessments will occur after the second term, giving operators greater visibility and predictability in their cost structures. 

HDB said it will continue to monitor market conditions and intervene where necessary to maintain a balanced commercial ecosystem that supports both businesses and the daily needs of residents.