In a propaganda attempt to cover up the inadequacies of CPF, Ministry for National Development Lawrence Wong wrote on his Facebook page encouraging Singaporeans to sell their HDB to retire. The Minister gave an example of a couple living in Woodlands applied for the Lease Buyback scheme where 25 years of lease were sold to the government in exchange for S$57,000 and a monthly S$400 in cash:
“They are typical of many HDB households. The general point is that your HDB leasehold flat is not only a good home, but also a nest-egg for future retirement needs.”
The PAP Minister then gave another example telling Singaporeans to sell their HDB flat:
“Through the Silver Housing Bonus scheme, the couple can sell their flat and right-size to a nearby two-room Flexi flat with a 30-year lease, while enjoying a bonus of $20,000 in cash. They can also get quite a lot of money from the sale proceeds – around $100,000 upfront in cash, plus $500 per month of additional income for their retirement.”
However, the Minister did not point out that children of Singaporeans will be trapped in poverty cycles, and having to repeat the house-buying cycle, when their parents sell off their HDB assets for retirement.
The availability of options to sell HDB flats itself is not bad per se but it should also not be seen as a retirement supplement. More Singaporean elderly are being pressured to sell their HDB flats because of the lack of Minimum Wage and the inadequacy of CPF.