Despite the negative publicity surrounding the lease decay of aging HDB flats, there are still some Singaporeans who are willing to buy them if the price is right, according to a commentary by the Sunday Times last weekend.
In an interview with a few Singaporean couples, the Sunday Times noted they bought the aging flats knowing their limited tenure.
File pic: HDB flats along Old Airport Road
49 year old Energy Consultant Mr Eric Ho chose to pay $790,000 for a five room HDB flat in Holland Drive over a small new condominium in Bukit Batok. The flat has only 56 years left on its 99 year lease. However Mr Ho described the deal as a “no brainer” given the flat’s big size of 119 square meters and prime location in Holland Village.
Another Singaporean Illyas Lim-Effandi chose to buy an old flat built by the Singapore Improvement Trust (SIT) between 1948 and 1953 for $425,000 in Tiong Bahru because of the flat’s spaciousness and proximity to town.
“We don’t expect anything more. We enjoy the flat for what it is and, more importantly, we can afford it,” he added.
In a blog post in March last year, Minister for National Development Lawrence Wong warned buyers of old HDB flats not to overpay for them as only 4% of them will be selected for Selective En Bloc Redevelopment Scheme (SERS) with the majority being reverted to the state with zero compensation when their lease ends.