Short leases popular among elderly buyers of two-room Flexi flats

The two-room Flexi Scheme allows elderly buyers the flexibility to choose from leases of between 15 and 45 years in five-year increments.
The two-room Flexi Scheme allows elderly buyers the flexibility to choose from leases of between 15 and 45 years in five-year increments. PHOTO: ST FILE

SINGAPORE - The majority of elderly applicants to the two-room Flexi Scheme opted for shorter leases, the Housing and Development Board (HDB) said on Sunday (March 5).

Around 2,100 - or 85 per cent - of those aged 55 years old and above chose leases shorter than the usual 99 years.

The most popular was the 40-year lease, with 697 bookings. This was followed by 35- and 30-year leases, with 559 and 344 bookings respectively, according to the HDB.

The two-room Flexi Scheme was introduced in August 2015 by the Ministry of of National Development and the HDB to allows elderly buyers the flexibility to choose from leases of between 15 and 45 years in five-year increments.

Since its introduction in the November 2015 sales exercise, HDB has offered about 10,000 two-room Flexi flats.

These flats have been "well-received" by flat buyers, said the HDB, with application rates ranging between 1.2 and 6.1. This means up to 6.1 people applied for one unit.

Of the four Build-To-Order (BTO) and Sale of Balance Flats exercises completed as of end-January, 87 per cent of the 6,070 units of two-room Flexi flats offered were booked.

Of the 5,289 flats booked, 2,467 or 47 per cent were by elderly buyers aged 55 and above.

In this year's first sales exercise held last month, the application rate was 4.1, with 2,894 applications for 713 two-room Flexi flat units in Punggol.

The HDB added it is committed to launch more BTO projects islandwide with two-room Flexi flats.