Responding to PM Lee’s speech that 99 year leasehold applies to both HDB flats as well as private residential apartments, veteran architect Tay Kheng Soon pointed out that there was a key difference between the two types of properties.
Writing in his Facebook, Mr Tay said:
“Since the issue of redevelopment is topical it is necessary to differentiate condos and HDB flats since both are on 99 year leased land. In the case of private condos, many are on 99year leases but all the units have a strata title. A strata title defines the unit size and its undivided share of the land.
“For example, lets say there are 100 units in the condo, therefore each unit strata owner has a 1/100 share of the land should the condo be sold en bloc to a new developer. Say there are 50 years left of the lease. The new developer pays to Singapore Land Authority (SLA) a top-up sum based on a formula to bring the lease back up to its original 99 year tenure status.
Usually developers do en bloc purchases because Urban Redevelopment Authority (URA) has assigned increased plot ratio. This enhanced plot ratio is a privilege that has to be purchased. It is not an entitlement.
The simple difference is one is a strata title and the other is only a lease even though both lands are 99 year leases. It will be interesting how the compensation will be computed in VERS.”
More at https://sg.finance.yahoo.com/news/99-leasehold-properties-hdb-condos-101702735.html
Writing in his Facebook, Mr Tay said:
“Since the issue of redevelopment is topical it is necessary to differentiate condos and HDB flats since both are on 99 year leased land. In the case of private condos, many are on 99year leases but all the units have a strata title. A strata title defines the unit size and its undivided share of the land.
“For example, lets say there are 100 units in the condo, therefore each unit strata owner has a 1/100 share of the land should the condo be sold en bloc to a new developer. Say there are 50 years left of the lease. The new developer pays to Singapore Land Authority (SLA) a top-up sum based on a formula to bring the lease back up to its original 99 year tenure status.
Usually developers do en bloc purchases because Urban Redevelopment Authority (URA) has assigned increased plot ratio. This enhanced plot ratio is a privilege that has to be purchased. It is not an entitlement.
The simple difference is one is a strata title and the other is only a lease even though both lands are 99 year leases. It will be interesting how the compensation will be computed in VERS.”
More at https://sg.finance.yahoo.com/news/99-leasehold-properties-hdb-condos-101702735.html
