High Clinic Rent in Singapore

In early 2025, a staggering S$52,188 monthly rental bid for a 50-square-meter general practitioner clinic in Tampines West sent shockwaves through Singapore’s healthcare and real estate sectors. This unprecedented figure, translating to over S$1,000 per square meter, far surpasses the typical rental rates for similar-sized clinics in Housing and Development Board (HDB) estates, which hover around S$10 per square foot, or roughly S$5,380 monthly for a comparable unit. The bid, secured by I-Health Medical Holdings for a unit at Block 954C Tampines Street 96, has ignited a public and governmental debate about the sustainability of healthcare costs in a city-state renowned for its efficient but expensive healthcare system. This case is not merely an outlier; it reflects deeper tensions in Singapore’s commercial real estate market and raises critical questions about balancing provider profitability with patient affordability.

The S$52,188 monthly rental bid for the Tampines West clinic, finalized in March 2025 after a January tender, stands as the highest per-square-foot rent for an HDB clinic to date. For context, typical clinic rents in HDB estates were approximately S$7.88 per square foot in 2022, likely rising to around S$10 per square foot by 2025 due to market stabilization and slight upward pressure. This would place the expected rent for a 538-square-foot unit at around S$5,380 monthly, making the Tampines bid over nine times the norm. The tender attracted 13 bids, reflecting intense competition driven by the location’s proximity to a dense residential population and a mixed-use development with a shopping mall, which promises high patient volumes.

To understand the Tampines case, it’s essential to situate it within Singapore’s broader commercial real estate landscape in 2025. Office rentals rose by 0.3% in Q1 2025, following a 0.9% decline in the previous quarter, while retail rents dipped by 0.5% after a 0.6% increase, indicating a market stabilizing after post-pandemic fluctuations. Medical clinics, often categorized under retail or mixed-use spaces, face unique pressures due to their reliance on high-traffic locations near residential areas. Historical data from 2022 pegged average clinic rents in HDB estates at S$7.88 per square foot, with prime locations commanding premiums. By 2025, estimates suggest a rise to around S$10 per square foot, reflecting modest growth in line with broader market trends.

The Tampines clinic’s high rent has sparked a broader conversation about its impact on healthcare costs. Singapore’s healthcare system, while efficient, ranks among the most expensive globally, with significant out-of-pocket expenses for patients. The fear is that exorbitant rents will force clinics to raise consultation fees, potentially pricing out lower-income and elderly patients who rely on affordable primary care. I-Health’s commitment to maintaining fees at S$30 to S$35 is reassuring, but not all providers may have the patient volume or business model to absorb such costs. If fees rise, the burden could disproportionately affect vulnerable populations, exacerbating healthcare disparities in a nation committed to equitable access.

Recognizing these challenges, the Ministry of Health (MOH) and HDB introduced the Price-Quality evaluation Model (PQM) for GP clinic tenders, launched with a 100-square-meter unit at Bartley Beacon, closing on May 29, 2025. This model allocates 70% of the tender evaluation to quality of care and 30% to rental price, aiming to shift competition away from escalating bids toward innovative care models, such as preventive care and chronic disease management. Early indications suggest lower bids compared to Tampines, signaling potential for cost moderation while prioritizing patient outcomes.

Proponents of high rental bids argue that they reflect market realities in a competitive, land-scarce city like Singapore. Prime locations like Tampines GreenGem, with dense residential populations and commercial amenities, naturally command premiums due to their potential for high patient throughput. Providers like I-Health, with a business model banking on 70 to 90 daily patients, justify such investments as strategic, enabling them to cover costs and maintain competitive fees. In a free market, high bids can drive efficiency, encouraging clinics to optimize operations and leverage technology to manage costs.

The Tampines clinic case illuminates a critical juncture for Singapore’s healthcare and real estate sectors. Rising rental costs, if unchecked, could erode affordability, particularly for primary care, which serves as the first line of defense for many residents. The PQM offers a promising framework, but its long-term impact depends on scaling it across HDB tenders and ensuring sufficient clinic spaces to reduce competition. Policymakers might also consider subsidies or incentives for clinics in less prime areas to ensure equitable distribution, addressing potential disparities in access.

​The Tampines clinic’s record-breaking rent is a wake-up call for Singapore’s healthcare ecosystem. It underscores the need for strategic interventions to align market dynamics with social goals. The PQM is a step in the right direction, but its success will require ongoing evaluation and adaptation. For patients, staying informed about clinic options and advocating for affordability is crucial. For providers, embracing innovative models and cost-sharing strategies could enhance resilience. Policymakers, meanwhile, should prioritize long-term planning to ensure clinic supply meets demand, preventing future bidding wars. By addressing these challenges head-on, Singapore can sustain its commitment to accessible, high-quality healthcare, ensuring that no one is left behind in the face of rising costs.