Clinic defends S$52k Tampines rent amid trend of high HDB tender bids for GP clinic spaces

Online Citizen​

2 days ago

SINGAPORE: A record-breaking rental bid for a general practitioner (GP) clinic space in a Housing and Development Board (HDB) block in Tampines has sparked concern among Singaporeans and online commentators.
The winning tender of S$52,188 per month, awarded for a 50 square metre ground-floor unit at Block 954C Tampines Street 96, was submitted by I-Health Medical Holdings.
The bid was finalised after a sealed-envelope tender process that closed on 14 January 2025.
The result, disclosed by HDB in March, quickly drew public attention after being highlighted on LinkedIn by Dr Hisham Badaruddin, who described the sum as 'obscene'.
His post was later shared on Reddit's r/singapore forum on 1 June, triggering widespread concern about possible knock-on effects on healthcare affordability.
Bid based on location strategy and future demand, says I-Health co-owner
Andrew Chim, 37, co-owner of I-Health Medical Holdings, defended the bid in an interview with The Straits Times on 3 June.
He explained that the decision was grounded in business logic and a comprehensive assessment of the unit's value and strategic location.
Chim said the Tampines unit was the most attractive of all recent HDB offerings for GP clinics.
He cited the presence of five Build-To-Order (BTO) projects housing around 5,000 households, as well as upcoming developments like a mixed-use project and a shopping mall, as reasons for the premium price.
'Our assessment is based on our understanding of the number of units in the area and the surrounding competition,' said Chim.
He noted that there are around five other clinics nearby.
Consultation fees to stay competitive despite record rental cost
Despite the high rent, Chim confirmed that consultation fees at the Tampines clinic will remain competitive—ranging from S$30 to S$35, comparable to other heartland clinics.
'Our pricing will be commensurate with other clinic chains' – it has to be because Singaporeans are value-conscious,' he added.
The Tampines clinic is scheduled to open on 26 June. It will operate from 8.30am to 3pm and 5.30pm to 10pm, including weekends and public holidays—offering more extensive hours than some nearby clinics.
I-Health expects the clinic to reach 70 to 90 patients per day within a year.
At that point, a second doctor will be deployed. Chim projects the clinic will become profitable within one-and-a-half to two years.
This marks the first successful HDB tender for I-Health. The firm previously attempted to secure units in Bidadari and Tampines North but lacked sufficient cash flow at the time.
'Now that we have sufficient cash flow, we have confidence to go after the best locations,' Chim said.
Responding to concerns that such high bids could inflate rents across the industry, Chim argued that landlords may still struggle to find tenants willing to match these prices.
HDB tender records show rising rents for clinic spaces across estates
The S$52k rent is not an isolated case. A review of recent HDB tender results reveals a pattern of high rental bids for clinic units.
In January, a unit at Block 235B Tengah Garden Walk attracted a winning bid of S$40,088 from Dr Daphne Lee, beating seven other bidders.
That same month, Caring Medical Clinic successfully secured a unit at Block 666 Tampines Street 64 with a S$25,388 bid.
In another tender that closed in March, Normanton Healthcare Pte Ltd emerged as the sole bidder for a unit at Block 88A Telok Blangah Heights, winning the lease at S$16,800 per month.
Meanwhile, a December 2024 tender for a unit at Block 568B Champions Way drew nine bids, with Caring Medical Clinic securing the lease for S$26,900 per month.
Public voices concern over clinic rent sustainability and potential impact on healthcare access
These figures underscore a growing trend of rising bidding for clinic spaces in HDB estates—likely reflecting increased demand for medical services in densely populated residential areas.
While public reaction to the Tampines bid remains mixed, the underlying dynamics suggest a competitive healthcare property market where bidders are willing to pay a premium for strategic locations.
Concerns have emerged online about the sustainability and implications of the record S$52,188 rent for the Tampines clinic.
Some comments on The Straits Times Facebook page questioned whether such high bids are only viable for large, well-funded medical groups.
One netizen calculated that if the clinic averages 100 patients daily, over 20% of an S$80 consultation fee would go towards rent.
This sparked debate on whether such cost distribution is acceptable in the context of public healthcare.
Another comment criticised the justification for the rent, arguing that high prices risk excluding patients who cannot afford care.
An FB user estimated that with 70 patients daily and typical staffing costs, the clinic would need S$36 per patient just to break even.
A self-identified real estate agent questioned why the government has not acted to stabilise rising clinic rents, despite success in cooling property prices.
New rental tender approach for GP clinics
On 8 May, Ministry of Health (MOH) and Housing Board announced a pilot scheme to jointly evaluate GP clinic tenders based not just on rental offers but also on service quality.
Under the new Price-Quality Method (PQM), now being piloted at Bartley Beacon in the Bidadari estate, 70% of the evaluation will be based on the quality of the proposal, and only 30% on the rental amount.
Factors such as care models, staffing standards, and operating hours will be assessed.
To accommodate more comprehensive care services, the Bartley Beacon unit will be approximately 100 square metres—double the size of a typical HDB clinic space.
The clinic is expected to begin operations in Q4 2025.
MOH stated that the pilot aims to enhance healthcare accessibility and better serve residents under the Healthier SG initiative.
Depending on its success, the approach may be extended to other clinic sites in the future.