SINGAPORE: The Housing and Development Board (HDB) has stated that the recent record-high rental for a general practitioner (GP) clinic in Tampines will not influence future tenders or existing rental rates across its clinic spaces.
This clarification came in response to public concern over the S$52,188 monthly rent awarded to I-Health Medical Holdings for a 50 square metre unit at Block 954C Tampines Street 96.
Awarded in March 2025, the bid had closed on 14 January, attracting 13 submissions. HDB confirmed it was the highest rental ever received for a GP or dental clinic of this size.
In its 4 June response, HDB explained that all GP clinic tenders are awarded based on the submitted tender price.
It stressed that the Tampines outcome “does not set any price requirements for future tenders” and “will not affect the rentals that HDB is charging other existing clinics.”
According to HDB, clinic rental decisions are influenced by factors such as location, shop size, trade type, and market conditions.
The average tendered rent for similar-sized clinics in 2024 stood at approximately S$9,800 per month, making the Tampines bid more than five times higher.
The rental translates to over S$1,000 per square metre, the highest ever for an HDB clinic space, sparking concern from residents and the medical community.
Health Minister criticises S$52k Tampines clinic rental as MOH shifts to quality-based tender model
Health Minister Ong Ye Kung addressed the matter on Facebook on 4 June.
He described the bid as “dismaying” and warned that such high rents “must translate to higher cost of healthcare one way or another.”
He stressed that high rental rates do not guarantee better health outcomes, noting that the Ministry of Health (MOH) prioritises affordability and accessibility.
The controversy was first sparked by a viral LinkedIn post from Dr Hisham Badaruddin, who labelled the rental “obscene.”
The post circulated widely, leading to broader discussion across platforms such as Reddit’s r/singapore.
In defence of the bid, I-Health co-owner Andrew Chim said the decision was based on strategic considerations.
He highlighted the clinic’s proximity to five Build-To-Order (BTO) developments housing about 5,000 households, alongside upcoming amenities such as a mall and mixed-use buildings.
Chim added that I-Health aims to keep consultation fees between S$30 and S$35, comparable to other clinics in the heartlands.
The clinic plans to offer extended hours and hire a second doctor within its first two years of operation. I-Health projects that the clinic will become profitable within 18 to 24 months.
PQM model
To address concerns around escalating rents, MOH and HDB introduced a revised tender framework in May 2025, known as the Price-Quality Method (PQM).
Under PQM, 70% of the evaluation score focuses on healthcare quality, while rental price accounts for only 30%.
Factors considered include care models, staffing, clinic hours, and community impact. The new method was piloted at Bartley Beacon, a 100 square metre clinic unit.
The Bartley Beacon tender drew 18 submissions.
Ong confirmed that responses were “encouraging,” with rental bids significantly below the Tampines rate on a per square metre basis.
He also clarified that the Tampines bid had been submitted in December 2024, prior to the PQM’s implementation.
Based on positive feedback, the PQM model will be used for all future GP clinic tenders in HDB estates, Ong added.
The aim is to ensure a balance between quality service provision and rental sustainability.
HDB reaffirmed its commitment, alongside MOH and other agencies, to maintaining access to affordable, quality healthcare within residential communities.
HDB tender records show rising rents for clinic spaces across estates
Rental data from recent months reveals a broader trend of rising clinic bid prices across the island.
In January, a clinic unit at Block 235B Tengah Garden Walk was awarded at S$40,088 per month.
Caring Medical Clinic secured another site at Block 666 Tampines Street 64 for S$25,388 per month.
In March, Normanton Healthcare Pte Ltd won a bid for a unit at Block 88A Telok Blangah Heights at S$16,800 per month.
Caring Medical Clinic also paid S$26,900 for a clinic unit at Block 568B Champions Way.
These figures indicate growing demand for strategic clinic locations in emerging or densely populated HDB estates.
The PQM framework forms part of the broader Healthier SG initiative, which seeks to shift Singapore’s healthcare model toward preventive care and long-term wellness.
The Bartley Beacon clinic, under this model, is set to open in the fourth quarter of 2025.
If successful, the approach may be extended to other locations, potentially reshaping the landscape of clinic tenders across Singapore.
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