During a dialogue session with young people on Sunday (Sept 2), Minister for Transport Khaw Boon Wan debunked claims that HDB flats are not assets just because the lease is for a limited 99-year period.
He told the audience that thosebwho buy a 50-year-old Housing Board (HDB) flat today can expect prices to continue to appreciate over the next 10 years.
“If you buy a 70-year-old flat, there is still appreciation potential especially because this Government is prepared to continue to invest in it through Home Improvement Programme (HIP) II and the Voluntary Ely Redevelopment Scheme (Vers),” he added.
Photo by Shermin Ng
Mr Khaw explained that while a flat is an appreciating asset for as long as the economy continues to grow, at some stage it would begin to depreciate.
He also explained that flat prices are now appreciating at a slower rate because Singapore is a developed economy and is unlikely the enjoy the same sharp rate of growth in the past.
“We can expect appreciation but not as fast as the one experienced by your parents and grandparents,” Mr Khaw said.