HDBs are shown as not affordable for older generations, as the data shown that 90% of the senior flat buyers opt for shorter leases for two-room Flexi flats.
Two-room Flexi flats are the lowest priced BTO flats available:
Floor area: 38 sqm, Price : $78,000 – $100,000
Floor area: 47 sqm, Price : $101,000 – $130,000
Seniors account for 54% of the total 10,230 two-room Flexi flats leasing since 2015.
9 out of 10 opted for shorter leasing period of between 15 to 45 years, which has no resale value.
The 40-year lease was the most popular, with 1,620 buyers. 100 seniors opted for the shortest lease of 15 years, the oldest applicant being at 95 years old.
HDB states that seniors who are 55 and above can take up a shorter lease as long as it covers the applicant and his spouse up to the age of at least 95 years of age.
The most likely reason for seniors resorting to this scheme is due to the rising price of the 99-year lease which has been increasing year-over-year throughout the history of HDB.
Recently there were many cases of exploding floor tiles, do take note of this on your next Build-to-order (BTO) flats.
In May, more BTOs on two-room Flexi flats are planned to be launched. This month, 657 such flats were up on market in Choa Chu Kang, Geylang and Woodlands.
Does this mean that our policies on public housing and pensions had failed, when so many downgrades are happening across all age groups?
What do you think? Share us your thoughts.