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

Confuseous

Alfrescian (Inf)
Asset
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

Super Moderator
SuperMod
Asset
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!!!
 

zhihau

Super Moderator
SuperMod
Asset
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? :mad::mad::mad:
 

CheeByeKiaTonyChat

Alfrescian
Loyal
marine parade flats easily half a million ok? :biggrin::biggrin::biggrin:

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

Alfrescian (InfP)
Generous Asset
so when one is 70 or 80, probably will need to find money to top up the lease.....
 

xebay11

Alfrescian
Loyal
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.
 

wendychan

Alfrescian (InfP)
Generous Asset
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

Alfrescian (Inf)
Asset
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.)
 

maxxi

Alfrescian
Loyal
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

Alfrescian (Inf)
Asset
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.
 
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