Extension of HDB leases on debate
As Singapore matures as a republic, the issues that arise from an ageing population become more
new units. The latter are often in a different
Clarence Lane in Queenstown. This means some of the oldest would be 58 years old if their leases
apparent. The ages and remaining
designated location though
had not been refreshed. That would
lease periods of HDB flats have been
compensation to help with the move
leave these earliest flats with 41
much debated of late, especially
would be provided.
years on their lease. Should a young
following recent mentions by the
The announcements stirred up
couple in their 30s have bought
authorities about the future of HDB
some concerns that older HDB
these flats, and with the average age
flats with less than 60 years left on
flats have decreasing to no future
of Singaporeans reaching almost 85
their leases.
value. In Parliament last week, Mr.
years, they would almost certainly
Wong reiterated the government’s
outlive the lease of their flat.
The government says there is still value in older HDB flats.
traditional policy stance on the issue
Last year, the Minister of National
but also says that there is still value
for owners of older flats, which
Development Lawrence Wong
in older HDB flats.
could possibly cover the payments
warned against paying exorbitant
Buyers can still use CPF to
While there are rental possibilities
made on them, this would be largely
prices for resale HDB flats with
pay for the flat but with certain
dependent on immigration and
fewer years left on their leases.
restrictions. These safeguards are
workforce policies. It would also
These older flats were often
in place to help citizens manage
mean the owners will need to have
in districts popular with young
their retirement funds. The issue
alternative accommodation.
couples who would often fork
needs further evaluation to ensure
out high prices for a unit and
affordability of housing for the
suggest to tackle this ageing-lease
spend considerable amounts for
future generation
issue? Their concern is however not
renovation works. Some buyers were also paying
88
selected, the HDB will offer owners
HDB flats have a lease period of
How then does the government
unfounded. Without intensification
99 years. The Republic of Singapore
of land through redevelopment,
high prices in hope that the units
is just about to celebrate it’s 53rd
future public housing prices could
purchased would be selected for the
birthday and the first HDB blocks,
become unaffordable for the
Selective En bloc Redevelopment
completed in November 1960, were
younger residents.
Scheme (SERS). Should a unit be
located at Blocks 134 and 135 at