$52k bid to rent Tampines clinic 'highest' psf received for GP, dental clinics of this size: HDB, Singapore News
The $52,188 monthly rental bid for a general practitioner (GP) clinic in Tampines is the highest per square foot rent that the Housing Development Board (HDB) has received for GP and dental clinics of this size to date.
Responding to AsiaOne's queries on Thursday (June 5), HDB said that the tender for the Tampines clinic attracted 13 bids in total.
It was awarded to Dr Shaun Lum, the co-owner of I-Health Medical Holdings, in March 2025, at $52,188 a month.
The unit at Block 954C Tampines Street 96 in March is reportedly 52 sqm, which is about 560 sq ft big.
"This is significantly higher than the average tendered rent of around $9,800 per month for similar-sized clinics let by HDB in 2024 and it is also the highest per square foot rent that HDB has received for GP and dental clinics of this size to date," said HDB.
The housing board added that all tenders awarded for GP clinics thus far are based on tendered price.
And that bids submitted by tenderers — including private clinic operators — are business decisions influenced by various factors including location, shop size, trades, and prevailing market conditions.
"The rental for this Tampines clinic does not set any price requirements for future tenders by HDB, and it also will not affect the rentals that HDB is charging other existing clinics," it said.
"HDB and our partner agencies are committed to ensuring that residents have access to affordable and quality healthcare services in the heartlands." Ong Ye Kung 'dismayed' at bid
Separately, Minister for Health Ong Ye Kung said in a Facebook post on Wednesday (June 4), that he was "dismayed" at the bid, which he stated was over $1,000 psm.
He expressed concerns about the high rental cost leading to higher healthcare costs for residents, which would negate the Ministry of Health's (MOH) efforts to keep primary healthcare affordable.
Ong added that higher rental bids do not necessarily translate to the best healthcare needed for the community.
"The role of a GP is increasingly important, as our population ages," he said.
"The GP is key in developing a relationship of trust with patients, and to guide them towards better health. He or she is the vital link to connect patients to acute hospital care, preventive community care and social prescriptions."
In his post, Ong also highlighted that bids for future HDB GP clinics will be assessed using the Price-Quality evaluation Model (PQM), which focuses less on price (30 per cent), and more on quality of care (70 per cent).
This model was first launched by MOH and HDB at the Bartley Beacon development in May.
Pointing out that the Bartley unit was twice the size of normal clinics, Ong stated that it would be suited for clinics intending to provide multi-disciplinary care and try out new models of care.
"Through this PQM, we can shift the competitive focus away from rental rates, to better care models, including preventive care, chronic disease management and mental health," he said.
The Bartley Beacon tender closed on May 29 with a total of 18 tenderers. MOH and HDB are in the process of evaluating the tender and aim to award the tender by August this year.
The health minister noted that the Tampines clinic was tendered in December last year and awarded in March this year, before the PQM model came into effect.
"Going forward, and given the encouraging response to the Bartley Beacon site, we will make the new PQM approach the norm, when tendering our GP clinics in our HDB heartlands," said Ong.
"It will be a meaningful shift, both in improving primary care, and ensuring greater affordability." We're not trying to 'squeeze' patients: I-Health
I-Health Medical Holdings' co-owner Andrew Chim told CNA that instead of trying to "squeeze" patients for every bill, building long-term relationships is key to the firm's business model.
He reassured that when the Tampines clinic opens later this month, patients will not pay above what other GPs are charging for consultations and medicine.
"The idea is to focus on patients who stay with the clinic for decades and return for annual health screenings, vaccinations and chronic disease management," he said to CNA.
"This is where we make our bread and butter – by looking after people over their entire lifetime."
Chim also told The Straits Times that their bid was based on the attractive attributes of the area, pointing out that it is in the middle of Tampines West and near five Build-To-Order projects (with 5,000 households) as well as other upcoming developments like a new mixed-use project and a shopping mall.
"Our assessment is based on our understanding of the number of units in the area and the surrounding competition," he said, adding that there are around five other clinics in the vicinity. Clinic has monopoly if it's the only one: Expert
Speaking to AsiaOne, Professor Sing Tien Foo from the Department of Real Estate in NUS Business School said that while the bid amount is high for an HDB shop, the bidder may have taken other factors into consideration while making the bid.
These factors could be the size of the shop, market coverage, and location — including the presence of other competing clinics nearby, he added.
Prof Sing also pointed out that being adjacent to Our Tampines Hub (OTH) could also impact the rental price of the unit in question.
When asked if this rent was sustainable, Prof Sing said: "It would depend on the business model and the operator's expected return."
"A business operator may be able to generate higher revenue for the store, such as operating a 24-hour clinic or co-sharing the clinic with several doctors, which could not be done in OTH."
"In this way, they could generate higher revenue to offset the high rental costs. If there are no other GP clinics in the estate, they could also enjoy a monopoly catchment area until other competing clinics enter." Experienced folks who understand the costs: Ho Ching
Chairman of Temasek Trust Ho Ching also weighed in on the issue via a Facebook post on Thursday, stating that the owners of I-Health ware not "newbies", with three other operating clinics in other locations.
"These are folks who have experience and know the operating costs," she explained.
Ho also pointed out that I-Health Medical would likely keep its consultation fees affordable at $30 to $35 — "comparable to the general GP rates".
She also provided a back of the envelope calculation, noting that at 100 patients a day, at $33 per consult, it'll work out to be $3300 per day, or about $99,000 a month of top line.
"This topline revenue also excludes other services such as medication, etc," she added.
"So from a patient's perspective, the winning bidder dollar does not translate to higher consult costs."
She echoed similar theories to Prof Sing, suggesting that the clinic could even evolve to provide 24/7 urgent care provided they "demonstrate the ability to deliver good care affordably".
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bhavya.rawat@asiaone.com
khooyihang@asiaone.com
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