Almost 60 years since the Housing Development Board (HDB) was established, a new concern has arisen – expiring leases of old HDB flats.
While most flats in Singapore have a remaining lease of at least 60 years, many home owners are concerned that the value of their flat will depreciate over time, trapping and eroding the equity in them.
Concerns over depreciating values have been further expressed by prospective homebuyers over the past year, with many who view the range of impacted flats to be those with less than 50 years left on their leases, to even homes that have leases of more than 60 years left.
The possibility of many shunning HDB flats with shorter leases arise from concerns that current homebuyers may not be able to sell their units in an extreme scenario after the minimum occupation period is over.
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