HDB 99 year lease – a current topic

About 80% of Singaporeans live in HDB flats on 99 year lease. Many of us fall within this category, and we can read in the media that many Singaporeans and PRs are concerned about the remaining lease years.

Concerns include passing over to the next generation, ability to buy a used HDB flat when the balance lease is 40 – 60 years. Understanding the HDB flat is an asset and what 99 years lease means to retirees downsizing.

Let’s say our HDB flat has 40 years left, what can we do with these 40 years?

Let’s discuss, so that most of us can have a better understanding of this topic and it’s implication.

Terence Seah

3 thoughts on “HDB 99 year lease – a current topic

  1. I think HDB CEO has make it very clear in her speech recently that HDB should be valued according to balance lease. After her speech, hdb resale price transacted dropped about 10-20%

    This scenario is based on present condition.
    But what if our population is increased to 8-10m, then sg will be like HK. Property prices will only go up and older flats give way for new building. Also not forgetting the leasehold in shanghai and hk is only 70 years

    My take is our hdb flat will still be of value even at 60-70yrs lease. And I forsee more older flats 50yrs old go under enbloc for new building. The future flats will be getting smaller; 3rm probably 500sf and 4rm 700sf

    • yes, i do agree with your insight if Singapore continue to open the gate for foreigner buyer. I also worry that the property price will shoot higher too.
      Recently attend a Hutton property events, they are pushing local buyer to start fast before price shoot up from buyers from PRC, Indian, Indonesian and Malaysia etc.
      My view is to wait to see our 2020 election carrot stick door gifts. If got good buyer, then dun hesitate to let go – that should be your top priority.
      Just beware not to commit too much loan mortgage on your next property shopping.

  2. Selling land is one of the main revenue for the government. If every HDB apartment you buy last till eternity where will future income comes from.
    Most of the land in HK is own by the major property tycoons. Most of the land in Sg is owned by the gov. Can you expect everything to be the same.
    Property is cyclic you gain when you buy low and sell high. You lose when reverse.
    When have you come across a property company telling you now is not the right time to buy?
    Buy what you can afford and able to service at least for the next 5 years. The most important aspect of property investment is in the leverage , that can makes you or break you. Best time to buy is when everyone is shaking their head and you are liquid. Most of the top rich in Asia comes from property. It’s a fact they got the best timing and they know the mkt.

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