Khaw confirms HDB flats worth ZERO DOLLARS at end of 99-yr lease

[Confuseous]

All HDB flats are sold to Singaporeans on a 99-year lease. We are technically not home owners, but lessees.

I asked the Minister for National Development, during the 20 January 2014 Parliament sitting, what the value of HDB flats would be once their leases expire. I also asked whether the pace of SERS — the Selective En Bloc Redevelopment Scheme — will be fast enough to replace the flats reaching the end of their lease.

The Minister confirmed that the value of the flats will be zero at the end of their 99-year lease. He also indicated that the selection of sites and pace of SERS depended on factors including the site’s redevelopment potential. Implicit in what he said was that SERS is not a scheme intended solely to replace old flats reaching the end of their lease.

He revealed that there are about 31,000 flats which are more than 40 years into their 99-year leases. This number will grow larger each year. It remains to be seen what the Government’s plans are for lessees whose flats approach the end of their lease.

The full transcript of the question and answer are below.

- http://geraldgiam.sg/2014/02/value-of-hdb-flats-at-end-of-99-year-lease/

 

[zhihau]

PTUI! haven't we been saying that HDB are the owners of the pigeon holes since a long time back? Sinkies please open your eyes!!!

 

[GoldenPeriod]

Do it like UK. Give residents the legal right to top up lease. Then can just en bloc.

 

[zhihau]

let's see, what are the terms we had been describing this situation?

paying up-front rental in 30 years for a 99 year lease of a pigeon hole. what else?

 

[CheeByeKiaTonyChat]

I really 'pei fu' those people buying 30-40 year-old hdbs as if their 99-year lease doesn't matter at all.

 

[zhihau]

I really 'pei fu' those people buying 30-40 year-old hdbs as if their 99-year lease doesn't matter at all.

marine parade flats easily half a million ok?

 

[CheeByeKiaTonyChat]

marine parade flats easily half a million ok?

That's why I 'pei fu' them. Imagine when they bought it, the flat already 30 years old. And then say they stay for 20 years, lease left 50 years only. And they still expect it to sell like brand new hotcakes at that time they selling it?

 

[wendychan]

so when one is 70 or 80, probably will need to find money to top up the lease.....

 

[eErotica69]

How about 99 years condo?

 

[CheeByeKiaTonyChat]

How about 99 years condo?

Condo buyers are more savvy about number of years remaining in the lease. HDB buyers are like totally bochup this.

 

[GoldenPeriod]

How about 99 years condo?

Same. Hope for a developer to buy the land, redevelop new condos and pay you off at a premium like those guys at Farrer Court.

 

[xebay11]

Same. Hope for a developer to buy the land, redevelop new condos and pay you off at a premium like those guys at Farrer Court.

Plot ratio must change, newer 99 year LH condos all fully built up already, very hard for developers to make money redevloping the land.

 

[ChenHaoNan]

How about 99 years condo?

Most people who buy LH condos will check years remaining... However for some fucking inexplicable reason when sinkies buy HDB they just simply don't give a fuck if the lease is running out.

 

[wendychan]

Most people who buy LH condos will check years remaining... However for some fucking inexplicable reason when sinkies buy HDB they just simply don't give a fuck if the lease is running out.

sometimes its a cost factor...... no choice, that is what they can afford. not everyone prepared to live in a vehicle.

 

[tanwahp]

The Minister confirmed that the value of the flats will be zero at the end of their 99-year lease.

Goh Chok Tong said HDB flat is "asset enhancement", Khaw said it is "asset depreciation". So which is which?

(Although from an accountant perspective, Khaw is right and Goh was bulling.)

 

[aerobwala]

Genius!!
Your life savings is locked to buy some brick wall at the end with zero value.

 

[xebay11]

Genius!!
Your life savings is locked to buy some brick wall at the end with zero value.

Do many have a choice with that?

 

[Muthukali]

PTUI! haven't we been saying that HDB are the owners of the pigeon holes since a long time back? Sinkies please open your eyes!!!

Hi bro zhihau, you like to eat Roti Prata? here is the answer to all the HDB myth.

 

[maxxi]

I could never understand ppl paying 1mil for HDB with 60/70 years left.

They think 5 years hence they can sell at higher?

 

[laksaboy]

All HDB flats are sold to Singaporeans on a 99-year lease. We are technically not home owners, but lessees.

If you don't own the land, you don't own shit.

Even those so-called 'poor people' in developing countries own their land, and they could build or grow anything they want without petty licenses or permits.

Debt is slavery, and one of the worst debts is a mortgage.