Debated in Parliament on 6 Mar 2026.
Mr Dennis Tan Lip Fong asked the Minister for National Development (a) whether prolonged vacancy in HDB-managed commercial properties is treated as a loss of public value; and (b) how HDB evaluates the trade-off between maintaining higher rental benchmarks and ensuring sustained occupancy and neighbourhood vibrancy.
In managing the Housing and Development Board (HDB) rental shop landscape, HDB focuses on achieving sustained occupancy and maintaining an appropriate tenant mix, so as to ensure residents in HDB estates have convenient access to amenities and services.
HDB does not seek to maximise rental collections or to maintain high rental benchmarks. In fact, HDB does not always award tenders to the highest bidder. For example, HDB adopts the Price-Quality Method for coffee shops and supermarkets, where 60% of the score is awarded for quality based on factors, such as affordability, good track record and community-centric initiatives.
When vacancies arise, HDB will assess the trade required. Where a change in the shop trade is assessed to be necessary to optimise the neighbourhood trade mix, HDB will conduct the necessary reconfiguration works before calling for tenders. Rather than setting specific vacancy thresholds or duration benchmarks, HDB puts out vacant units for tender as soon as possible to avoid inconvenience to residents. Vacancy rates for HDB rental shops are generally low. In 2025, the overall vacancy rate was 1.6%.
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