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Hoseh liao.....The ticking time bomb of the 99-year-leasehold HDB flats

micromachine

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Writing for his Ministry’s blog in March last year, Mr Wong asked HDB flat owners to not assume that all old HDB flats will become eligible for Sers (Selective En bloc Redevelopment Scheme). He said that “only 4% of HDB flats have been identified for SERS since it was launched in 1995”, and that “it is only offered to HDB blocks located in sites with high redevelopment potential”.

About 70,000 flats (of the 1-million HDB flats) are more than 40 years old, and almost 10 percent of flats will face lease expiry in 50 years. The Minister’s announcement essentially means that such flats will have zero value once it reaches 99 years and owners will have to vacate their homes. Most owners will see the land their flat was on being returned to the State at the end of the 99-year-leasehold.

More at https://www.prolificcrap.com/forum/...-time-bomb-of-the-99-year-leasehold-hdb-flats
 
With the current enbloc fever, why not throw in a couple of SERS for the older HDB :rolleyes::rolleyes::rolleyes:

everything make the next generation pay and pay :confused::confused::confused:
 
A letter published in the Straits Times claimed recently that the promise of owning a 99-year-leasehold HDB (Housing & Development Board) flat as an investment for old age is no longer valid today. The letter writer, Ronnie Lim Ah Bee, pointed to the announcements by National Development Minister Lawrence Wong to bolster his claims.

Writing for his Ministry’s blog in March last year, Mr Wong asked HDB flat owners to not assume that all old HDB flats will become eligible for Sers (Selective En bloc Redevelopment Scheme). He said that “only 4% of HDB flats have been identified for SERS since it was launched in 1995”, and that “it is only offered to HDB blocks located in sites with high redevelopment potential”.

About 70,000 flats (of the 1-million HDB flats) are more than 40 years old, and almost 10 percent of flats will face lease expiry in 50 years. The Minister’s announcement essentially means that such flats they will have zero value once it reaches 99 years and owners will have to vacate their homes. Most owners will see the land their flat was on being returned to the State at the end of the 99-year-leasehold.

The letter writer said that “many seniors who want to downgrade to Built-To-Order studio apartments for the elderly are in a fix as they are unable to sell their old flats”, and that many such seniors “stand to lose their deposits on their new flat if they cannot sell their old flat.”

Analysts expect 99-year-leasehold HDB flat prices to remain flat this year" data-reactid="15">Analysts expect 99-year-leasehold HDB flat prices to remain flat this year
resale flats[/a] dipped by 0.8 per cent in the 1st Quarter of 2018 from the previous three-month period. The price drop is significant from its peak in the 1st quarter of 2013.


99-year-leasehold


Some, like Mr Lim, are disappointed by the price drop in HDB resale flats. “Most of them were hoping to downgrade and live on the profits from selling their flats but have become disillusioned,” Mr Lim said.

He added: “The Government needs to step in to manage this problem and not just leave things to market forces.”

Without the possibility of lease renewal, the implications for HDB flat owners of older resale flat owners are less certain, as a steady and steep depreciation may wipe out what many count on as a retirement asset.

The Government implemented market pricing and the asset enhancement policy for public housing in the late 1980s. The aim of this programme was to allow heartlanders a chance at enjoying the appreciation of their HDB flat – which is a key asset for most of them. The programme led to more than 10 fold increase in the price of HDB flats in the nest 30 years.

commented on the news of Mr Wong’s blog post saying: “This is as close to an admission of the mistakes of that policy from government as we’re ever going to get.”" data-reactid="34">Mr Wong’s comments about Sers in 2017, caused many to doubt if the Government was scaling back on its Asset Enhancement Programme. For example, Donald Low, an Associate Dean at the Lee Kuan Yew School of Public Policy, commented on the news of Mr Wong’s blog post saying: “This is as close to an admission of the mistakes of that policy from government as we’re ever going to get.”

In a subsequent Facebook post, the Minister assured home owners that 99-year-leasehold properties are still a “good store of asset value”, so long as one plans ahead and makes prudent housing decisions. This caused some to ask how in one fell sweep, HDB flats had gone from being “asset enhancement” to “good store of asset value”.

" data-reactid="36">



<Leasehold Properties as Assets> My last blog on choosing a HDB resale flat generated some discussion and debate. Let…

Posted by Lawrence Wong on Tuesday, 11 April 2017

Chris Kuan for example, responded&nbsp;to Mr Wong’s Facebook post saying that there no getting away from the “gorilla in the room”- which is the fact that the value of HDB flats will be $0 at the end of the 99-year leasehold period." data-reactid="39">Prominent socio-economic commentator Chris Kuan for example, responded to Mr Wong’s Facebook post saying that there no getting away from the “gorilla in the room”- which is the fact that the value of HDB flats will be $0 at the end of the 99-year leasehold period.



“The depreciation of HDB flat over time will still be driven by the reversion to zero at the end of lease. That in turn will always drive the amount of money extracted from monetization of the flat. The worse outcome is a double whammy of the depreciation effect of reversion to zero in the lease coupled with a sharp fall in real estate prices…the MND may try to avoid that issue but it is what drives the amount of money HDB owners can get out of their “good store of value”. ” – Chris Kuan
 
Technically...do you actually "own" that HDB flat?

Any title deeds to prove ?
 
Ronnie Lim Ah Bee must be part of the 69%. Now he is writing to express his regret cos his nest egg hdb "asset" is worth $0 when the lease ends.
 
Old people who bought their flats in good locations have no such issues. Prime land will always be favoured for SERs
 
Old people who bought their flats in good locations have no such issues. Prime land will always be favoured for SERs
No longer true. Queenstown, tanglin halt, commonwealth have flats that are reaching the end. What about central areas like Toa payoh and ang mo kio ... Sers all of them? Impossible. Those bought old flats at prime location must be prepared to suck thumb.
 
Those bought old flats at prime location must be prepared to suck thumb.

couple of points-

1. CPF shouldn't be used to finance the HDB to begin with.

2. HDBs should not be sold in open market as an asset enhancement tool but reclaimed by HDB at sale price when it was first acquired.
 
No ticks here! Your kukuhair then got ticks! Stop sensationalizing old hdb problem. How much they buy it for, can you guess? You people too young! Sometimes naive! :rolleyes:
 
No ticks here! Your kukuhair then got ticks! Stop sensationalizing old hdb problem. How much they buy it for, can you guess? You people too young! Sometimes naive! :rolleyes:
Those who bought direct from hdb, no issue. It cost less than 50k then.

Those who bought resale in recent years are the ones who will suffer. Make up of 2 main groups :

1. Young couples paying high price for 3 rm hoping for sers
2. Downgraded either forced to downgrade due to financial problem or to cash out.
 
Those who bought direct from hdb, no issue. It cost less than 50k then.

Those who bought resale in recent years are the ones who will suffer. Make up of 2 main groups :

1. Young couples paying high price for 3 rm hoping for sers
2. Downgraded either forced to downgrade due to financial problem or to cash out.

Four to three room flat downgrade, sure have money leftover. Who would want to lose money sell four room buy three room huh? o_O

First group went in with eyes wide open. Eyes paste stamp? You can’t blame the PAP for that! :rolleyes:
 
Four to three room flat downgrade, sure have money leftover. Who would want to lose money sell four room buy three room huh? o_O

First group went in with eyes wide open. Eyes paste stamp? You can’t blame the PAP for that! :rolleyes:
The greedy silly folks should bear the greater portion of the blame for believing in a party's sales slogan of voting them for property appreciation.

If it is a 4/5 room direct downgrade to 3 rm then sure have profit so no issue. But such cases are rare. Instead the sheep followed the wolf's to upgrade to gain more appreciation, only to find themselves hard hit during those financial crisis. So from upgrade to downgrade, this goondus have everything wipe out and is still in debt for the 3 rm flat.

Unless we think peddler of fake medicine is free of blame as the customers are plain stupid, otherwise anyone advising to upgrade for more property appreciation must bear responsibility for giving only a one sided picture.
 
The greedy silly folks should bear the greater portion of the blame for believing in a party's sales slogan of voting them for property appreciation

oh well, we're kicking the can down the road... on hind sight, we have the luxury of inviting those cash rich Ah Tiongs to pick up those 500K 5rm HDB at matured estates or million dollar 5rm HDB at Bishan... :D:D:D
 
oh well, we're kicking the can down the road... on hind sight, we have the luxury of inviting those cash rich Ah Tiongs to pick up those 500K 5rm HDB at matured estates or million dollar 5rm HDB at Bishan... :D:D:D
Yes the can is rolling down to the end of the road and there are many cans. Btw 5 rm in good estate is now more than 700 k for resale and more than 500 k for BTO in mature estate but silly sheep still thinks there is room for appreciation.

The only way for further appreciation is to reduce lease to 60 years but that is only shortlive as sgd is very expensive so wages cannot match. Ah Tiong comes mainly because of stability, be it prices, economy .. and especially currency. Any attempt to devalue sgd will likely cause a capital flight and is a no no option. With limitation of wage it is interesting to see how property can further appreciate especially when interest rate is also increasing.
 
No longer true. Queenstown, tanglin halt, commonwealth have flats that are reaching the end. What about central areas like Toa payoh and ang mo kio ... Sers all of them? Impossible. Those bought old flats at prime location must be prepared to suck thumb.
Those areas with SERs enables pap to earn money..they don't enbloc they don't earn..so pap needs enbloc more
 
When it comes to SERS, will PR owners qualify too or does govt discriminate against PR owners?
 
Most of these flats are no doubt in Hougang.

No, you do not have the title deed...it is a leashold deed....even you, pay, to the last cent for the flat & clear your obligation with you blood, sweat & tears money... you have NO TITLE TO THE FLAT.
 
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