Following the Minister of National Development (MND) Lawrence Wong’s comment on HDB being worthless after the lease expires, property agents whom the state media echo the call.
Director of International Property Advisor Ku Swee Yong, told state media TodayOnline that the Central Provident Fund (CPF) do not allow Singaporeans to buy HDB flats with less than 60 years on their lease:
“The market value of older flats will fall in tandem with the lease duration. HDB loans and the use of Central Provident Fund are restricted for buying flats with less than 60 years left on their lease. In the last 30 years of the lease, only buyers with enough cash will be willing to buy. Then the value drops very quickly.”
The property analysts whom TodayOnline spoke to also said that Singaporeans should not expect the government to bail them out using taxpayers’ money through the Selective En Bloc Redevelopment Scheme (SERS) because HDB leases operate like the private market.
Many Singaporeans have expressed disappointment at Minister Lawrence Wong’s comment as they thought the government will compensate existing homeowners when their HDB lease expires.
SLP International Property Consultants’ head of research and consultancy Nicholas Mak, said that the Singapore government will make Singaporeans pay to renew HDB lease:
“Buyers cannot expect the Government to save them using taxpayers’ money through Sers, and the situation is no different from the private property market. For condominiums, it is already a given that the Government will not renew the lease for free.”