Forum: Social changes a reason to look at extending HDB lease
Jul 22, 2024
The 99-year lease on HDB flats continues to be a contentious issue for Singaporeans, especially given how expensive flats have become (Future of HDB flats: A delicate balancing act, says sociologist Chua Beng Huat, July 13; and Don’t allow 99-year HDB lease issue to remain unresolved, July 19).
This is not simply a matter of rising costs.
The Housing Board began its 99-year lease model for its public housing flats in the 1960s. This lease model means that the ownership of the flats will revert to the state after 99 years.
Addressing Parliament, National Development Minister Desmond Lee has said that HDB flats of 99-year leasehold strike a good balance between providing a home for life, asset appreciation, rejuvenating our city and building homes for the new generation.
However, it should be recalled that in the 1960s, the life expectancy of Singaporeans was just 60-plus years. Moreover, Singaporeans married and had children very early then, often in their 20s.
Taken together, the 99-year lease would have allowed the children of the original buyers to live in that HDB home for life if desired. Socially, this makes sense, and provides families with stability and the intimate memories of growing up in that home.
It also helps buyers whose children have a permanent disability or serious illness, giving families the peace of mind that, regardless of finances, the children can spend the rest of their lives in their parents’ home if need be.
Moving forward to the present, the life expectancy of Singaporeans has increased significantly to more than 80 years. Singaporeans are also marrying later and delaying having children, if they have any at all.
These seismic social changes in Singapore ought to be considered in determining anew the length of HDB flat leases. For instance, extending the leases of HDB flats to, say, 150 years may help allay some of these concerns.
Daniel Ng Peng Keat
