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Coolie genes please fark off!
Summary
[SINGAPORE] Leasehold properties, whether public housing flats or industrial units, have a definitive shelf life, and putting pressure on the government for “more goodies” is “not the right thing to do”, said Temasek Trust chairman Ho Ching.
In a Facebook post on Thursday morning (Sep 4), Ho highlighted that owners of leasehold properties benefit from potential capital gains as property values rise, and the economy and income grow.
In the early years, such properties can act as inflation-linked assets, but closer to expiry, their value is tied mainly to rental income over the remaining years, discounted to present value, she noted.
“This means taking a view on how the remaining 10 years will look like, knowing that the leasehold will run out at the end of the 10 years’ balance,” said Ho, who is also the wife of Senior Minister Lee Hsien Loong.
“Folks who buy 30 or 40 year balance leasehold properties clearly know that. But, of course, such owners will hope to pressure the government to give them more goodies, right? Human nature, but not the right thing to do for the longer term good of the overall population across generations.”
With the first public housing flats built by the Housing & Development Board (HDB) in the 1960s approaching the end of their 99-year leases, there is a pressing need to renew and rebuild ageing estates.
Tuesday, 12 pm
National Development Minister Chee Hong Tat has said that the government is working out a new framework for a Voluntary Early Redevelopment Scheme (Vers) to be rolled out in the late 2030s, to replace the earlier Selective En bloc Redevelopment Scheme (Sers) which has been shelved.
Under Vers, owners of HDB flats aged 70 years and older will vote on whether the government should buy back their homes before their leases run out.
Chee pointed out that the compensation terms for Vers will be less generous than that of Sers, given flats’ older age.
In her post, Ho said that the original owners of most 99-year leasehold properties would have passed on by the time its lease expires – and when Vers comes along.
The government should perhaps “give weight” to the original owners of HDB flats who are still alive, since moving homes is “one of the handful of traumas that can trigger serious health issues”.
“But for all the other owners, it is willing-buyer (and) willing-seller who really have no right to ask for special goodies,” explained Ho. “If there are any special goodies, it would be for that unmarried child who had stayed with their parents, looked after their parents till their deaths, and inherited their parents’ flat.”
In a subsequent post on Thursday evening, Ho added that owners of flats with only 10 to 15 years left on their leases often have little incentive to maintain them. Left unchecked, this may result in “urban slums”, a problem already evident in other cities around the world, she noted.
Singapore’s town councils and condominium management committees slow this process, but a reluctance to increase maintenance fees has left sinking funds inadequate for major repairs, said Ho. This results in lifts breaking down and common areas being less well-maintained, even for developments under 30 years old.
“So what happens for even older estates with shorter leaseholds left?” she asked. “As the flats get older, are they more likely to become slums from neglect?”
Ho said: “We will need to think HDB not just at point of sale as a new (Build-to-Order) project for first-timer owners. We need to think life cycle both for the original buyers and their families, and the life cycle for the property, so that we can thread the needle well.”
She added: “Meanwhile, let’s not give false hope that the (99-year leasehold) can somehow be shifted.”
Leasehold properties have a definite shelf life; owners should not expect ‘more goodies’: Ho Ching
Summary
Neglect of such older estates could result in ‘urban slums’, adds Temasek Trust chairman
Ry-Anne Lim
[SINGAPORE] Leasehold properties, whether public housing flats or industrial units, have a definitive shelf life, and putting pressure on the government for “more goodies” is “not the right thing to do”, said Temasek Trust chairman Ho Ching.
In a Facebook post on Thursday morning (Sep 4), Ho highlighted that owners of leasehold properties benefit from potential capital gains as property values rise, and the economy and income grow.
In the early years, such properties can act as inflation-linked assets, but closer to expiry, their value is tied mainly to rental income over the remaining years, discounted to present value, she noted.
“This means taking a view on how the remaining 10 years will look like, knowing that the leasehold will run out at the end of the 10 years’ balance,” said Ho, who is also the wife of Senior Minister Lee Hsien Loong.
“Folks who buy 30 or 40 year balance leasehold properties clearly know that. But, of course, such owners will hope to pressure the government to give them more goodies, right? Human nature, but not the right thing to do for the longer term good of the overall population across generations.”
With the first public housing flats built by the Housing & Development Board (HDB) in the 1960s approaching the end of their 99-year leases, there is a pressing need to renew and rebuild ageing estates.
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Tuesday, 12 pm
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Get an exclusive analysis of real estate and property news in Singapore and beyond.National Development Minister Chee Hong Tat has said that the government is working out a new framework for a Voluntary Early Redevelopment Scheme (Vers) to be rolled out in the late 2030s, to replace the earlier Selective En bloc Redevelopment Scheme (Sers) which has been shelved.
Under Vers, owners of HDB flats aged 70 years and older will vote on whether the government should buy back their homes before their leases run out.
Chee pointed out that the compensation terms for Vers will be less generous than that of Sers, given flats’ older age.
In her post, Ho said that the original owners of most 99-year leasehold properties would have passed on by the time its lease expires – and when Vers comes along.
The government should perhaps “give weight” to the original owners of HDB flats who are still alive, since moving homes is “one of the handful of traumas that can trigger serious health issues”.
“But for all the other owners, it is willing-buyer (and) willing-seller who really have no right to ask for special goodies,” explained Ho. “If there are any special goodies, it would be for that unmarried child who had stayed with their parents, looked after their parents till their deaths, and inherited their parents’ flat.”
In a subsequent post on Thursday evening, Ho added that owners of flats with only 10 to 15 years left on their leases often have little incentive to maintain them. Left unchecked, this may result in “urban slums”, a problem already evident in other cities around the world, she noted.
Singapore’s town councils and condominium management committees slow this process, but a reluctance to increase maintenance fees has left sinking funds inadequate for major repairs, said Ho. This results in lifts breaking down and common areas being less well-maintained, even for developments under 30 years old.
“So what happens for even older estates with shorter leaseholds left?” she asked. “As the flats get older, are they more likely to become slums from neglect?”
Ho said: “We will need to think HDB not just at point of sale as a new (Build-to-Order) project for first-timer owners. We need to think life cycle both for the original buyers and their families, and the life cycle for the property, so that we can thread the needle well.”
She added: “Meanwhile, let’s not give false hope that the (99-year leasehold) can somehow be shifted.”
