Singapore Property Update

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PM Lee: Fair to return HDB flat to government when lease ends

It is a fair arrangement for Singaporeans to return their HDB flats to the government with zero compensation when their 99 year lease ends, said Prime Minister Lee Hsien Loong.

Speaking to queries from a Jalan Kayu grassroots leader, PM Lee explained the meaning of a 99 year old leasehold HDB flat as reported in the Chinese media:

“It means the government sells you the flat for 99 years and after 99 years you return the flat to the government. This is the same as selling a 20 year old leasehold hawker stall to a hawker. The hawker can do his business at the stall or rent it out to another person, but once the tenancy ends, the stall will return to the government’s possession.”

File pic: Old HDB flats in Toa Payoh

 

PM Lee added if a Singaporean bought a 99 year leasehold HDB flat at 30 years old, the house still has a remaining lease of 59 years when he retires 40 years later which enables him to live the rest of his life in it without any financial burden.

“If you live till 90 years old, there are still 30 to 40 years left in the lease which is still valuable and can be transferred to your children who can sell the flat should they not want to stay in it.”┬áhe continued.

The lease decay issue of aging HDB flats has been put under intense public scrutiny lately with many Singaporeans expressing their concern over the depreciating value of their flats with time.

 

Related articles:

ST: There are still buyers of aging HDB flats

Khaw Boon Wan: 70 year old flats still have appreciation potential

HDB data reveals 40% price difference between younger and older HDB flats in Toa Payoh

Why HIP2 and VERS will not transform your depreciating HDB flat into an asset

Credit Suisse: HDB resale flats are likely to see a decline in value over time

Why HDB flats cannot be considered as an asset which will generate wealth

Differences between 99 year leasehold private properties and HDB flats

Can I use my CPF or secure a bank loan to buy a 70 year old HDB flat?

Updated: October 24, 2018 — 10:09 am
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