Forum: Flat buyers and sellers should plan finances carefully, consider long-term needs
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We refer to the letter “ Buyers, sellers of HDB flats must fully grasp impact of lease decay”
Housing Board flats are sold on leases of up to 99 years to meet the housing needs of the current generation and allow for land to be recycled to ensure that public housing remains affordable and accessible for future generations. This helps to promote intergenerational mobility, and prevent society from being split into property owners and non-property owners, which will be socially divisive.
HDB flats are intended primarily for owner-occupation. Buying a flat on a 99-year lease is different from renting. HDB flat buyers own the rights to their flats. For those who have met the minimum occupation period, they may decide to rent out their flat or sell it.
Seniors can also unlock the value of their flat through various schemes, such as the lease buyback scheme, by selling part of the flat’s lease back to HDB and receiving a stream of income, while continuing to live in it. These are options which are not available if the flat is rented and not owned.
Property prices, including HDB resale flat prices, are driven by multiple factors including the remaining lease, property’s attributes, prevailing economic conditions and market sentiments.
Prospective home buyers should do their research carefully while planning their budget and considering the remaining lease of the property. This is to ensure that they can purchase a home-for-life flat that would best suit their budget and needs.
Buyers and sellers can use the HDB flat portal, which provides customised financial calculators for buyers to estimate their housing budgets, and for sellers to estimate their projected sale proceeds.
Sia Tze Ming
Director (Policy and Property)
Housing & Development Board
