Singapore's 99-Year Lease of Residential Properties: Weighing the Facts and Possible Solutions

[micromachine]

There has been a very intense discussion around what is going to happen when 99-year lease of HDB units in Singapore expire. While some officials have been hinting that lease willl indeed expire and homeowners may have to return their properties back to the government, some consumers have also been contending this issue. But, what other alternatives are there? Below, we explore some of the facts around property prices in Singapore, as well as the plausibility of alternatives to the lease expiration.

Real Estate Market in Singapore vs Similar Asian Cities

While Singapore isn't known to be very cheap city to live in, evidence suggests that the real estate market in Singapore would be much more expensive had it not been for the HDB programme. For example, Singapore's private property prices are actually very similar to those of Seoul, Hong Kong, Beijing and Shanghai where population density is quite comparable to that of Singapore's. Given that population density is one of the major driving factors of supply and demand dynamic in real estate, it's quite possible that flats in Singapore could cost just as much as they do in Seoul or Hong Kong if there were no public housing. Owing to the cheap HDB price, Singapore has been able to achieve an extremely high home ownership rate of 90%, while Seoul and Hong Kong continue to remain at 50-60% range.

More at https://sg.yahoo.com/finance/news/singapore-apos-99-lease-residential-221446012.html

 

[eatshitndie]

aiyah. where is papsmearer? we have discussed this on sbf previously to death.

 

[micromachine]

so who died?

 

[winnipegjets]

HDB flats (public housing) are NOT cheap.

 

[iluvgst]

The problem is the government. All land in singapore is freehold, it is just that the government owns 90 percent of the freehold on the land. they sell 99 leases on private residential land and for HDB they lease out the airspace under land titles act.

They wont allow lease extension of private residential unless u redevelop which inadvertently forces enblocs and churning of property prices. HDB land if becomes more valuable like Rochor Centre, they just kick u out and house u somewhere further like in Kallang under some pretext of highway construction.

In the UK, they curb the greed of landlords who own the freehold on the properties which are sold on long leases. The Leasehold Reform, Housing and Urban Development Act 1993 relates to flats and provides statutory rights to a joint acquisition of the freehold, acting together with other leaseholders in the building, or to an individual extension of the lease by a term of 90 years. For landed housing, the Leasehold Reform Act 1967 provides statutory rights to acquire the freehold, or to extend the lease by a term of 50 years.

However in Singapore, the biggest landlord is none other than PAP. one cannot expect the greediest to curb his own greed. In summary, sinkies screw themselves by voting for the greediest landlord.

 

[eatshitndie]

so who died?

hopefully more sinkies will jump when they finally wake up to a 45-year old hdb flat and the value just plunged 6.9 stories into the longkang.

 

[nayr69sg]

Lease extension for HDB flats will be dangled as election carrots. No more talk about "upgrading" anymore. Now it will be lease extensions. I said this like 15 years ago. Right Charlie99?

As for this "expectation" of enbloc, the question is how high will the government allow apartments to build to? Again this is where the govt controls as well. I can imagine a 99 year lease condo coming to the end of its lease in a opposition held ward will not be allowed to obtain a higher plot ratio vs one held in a PAP controlled ward.

Sinkies.....you are screwed! LOL!

 

[bobby]

No one ever "owns" his HDB flat...it is only a long term lease from the gahmen.

 

[maxsanic]

I don't understand the recent hooha honestly. The government was transparent from day one that all HDBs are 99 year leaseholds. On & off a few politicians will talk crap to hint that it might be otherwise, but fundamentally a 99 year old lease was never in doubt and there was never any serious impetus to change this system.

Many Singaporeans seem to suddenly express shock to learn of this 50 year old fact recently. Reminds me of some idiot employees who give the deer in headlights look when they were fired from their jobs despite the HR telling obvious lies like how much the company value them as "human capital" in the past. Some people really need to grow up. Stupidity is a crime that is always punished.

 

[nayr69sg]

Yeah go ask those people who have 99 year lease condos. They will tell you theirs is DIFFERENT!

Then when time comes and if no en bloc...

Lol.

 

[Truth_Hurts]

All along never buy lease hold condo unless it's 999

Yeah go ask those people who have 99 year lease condos. They will tell you theirs is DIFFERENT!

Then when time comes and if no en bloc...

Lol.

 

[borom]

The highlight has been on the lease or rather the period of the lease-but few paid attention to the fact that can these HDB blocks built on what look like concrete stilts last for the 99 years. The oldest HDB flats are 58 years old and can these last another 40 years.
They can use SERS to rebuilt the older blocks as there were not too many of them but with each increasing year, there will be more and more old HDB blocks. When I see how some people extensively tear down walls.,drill holes for air-conditioning , load heavy appliances ect2 I shudder although I am not a structural engineer.
Can the HDB blocks last for 99 years-that is a more important question.
So what if you extend the lease?

 

[ginfreely]

Yeah go ask those people who have 99 year lease condos. They will tell you theirs is DIFFERENT!

Then when time comes and if no en bloc...

Lol.

Why no en bloc? If freehold can go enbloc surely 99 year condo can go en bloc, only need to top up the lease.

 

[eatshitndie]

The highlight has been on the lease or rather the period of the lease-but few paid attention to the fact that can these HDB blocks built on what look like concrete stilts last for the 99 years. The oldest HDB flats are 58 years old and can these last another 40 years.
They can use SERS to rebuilt the older blocks as there were not too many of them but with each increasing year, there will be more and more old HDB blocks. When I see how some people extensively tear down walls.,drill holes for air-conditioning , load heavy appliances ect2 I shudder although I am not a structural engineer.
Can the HDB blocks last for 99 years-that is a more important question.
So what if you extend the lease?

barring a major earthquake of more than 6.9 in magnitude, concrete blocks with rebars (reinforced concrete) should last for more than 99 years. in fact concrete structures without rebars (unreinforced concrete) such as roman structures built more than 2000 years ago are still standing today. for hdb blocks first to give way is plumbing as they are mostly pvc pipes. even for alloy pipes joints will corrode and bends will get choked with guck and hair. plus debris from initial construction and subsequent renovations may be dumped into plumbing by unscrupulous contractors and cause chokes in the pipes. sewage pipes are usually first to corrode. and lack of sewage piping vents may lead to foul stench and accumulation of gas. next to go wrong is electrical wiring. wiring in humid and wet climate doesn’t last 69 years if rodents and insects or other critters don’t get to them first. they need to be replaced before 69 years, and just the rewiring of the entire block is a major task by itself. otherwise, short circuits and faulty wiring may lead to fires.

 

[ginfreely]

Why no en bloc? If freehold can go enbloc surely 99 year condo can go en bloc, only need to top up the lease.

Wow this 33 years old 99 year condo Vista Park with plot ratio only 1.4 also can go en bloc.

https://www.propertyguru.com.sg/pro...ley-buys-vista-park-via-en-bloc-sale-for-418m

The property was acquired by the company’s wholly-owned unit Oxley Spinel Pte Ltd, which intends the refresh the site’s remaining 66-year lease to 99 years and lift certain title restrictions by paying an additional $72 million to the Singapore Land Authority.

Oxley intends to redevelop the property, subject to obtaining all the necessary approvals from relevant authorities.

The site measuring 319,250 sq ft has a permissible height of up to five storeys and a plot ratio of 1.4. This works out to a potential gross floor area (GFA) of around 446,951 sq ft, meaning it could generate some 530 units with an average size of about 800 sq ft.

 

[nayr69sg]

Wah so good.

Actually people who buy the new development after the en bloc expect the new development also to to en bloc in the future is it?

Wah keep going higher and higher and higher and more expensive and more expensive! Singapore future is bright for the young sinkies!

 

[eatshitndie]

The property was acquired by the company’s wholly-owned unit Oxley Spinel Pte Ltd, which intends the refresh the site’s remaining 66-year lease to 99 years and lift certain title restrictions by paying an additional $72 million to the Singapore Land Authority.

in sg must watch out for 6 and 9. these 2 numbers are symbiotic in sg and together they cause many happy endings. now you understand why i like 69 and have been posting soixante neuf when it cums to sg.

 

[ginfreely]

in sg must watch out for 6 and 9. these 2 numbers are symbiotic in sg and together they cause many happy endings. now you understand why i like 69 and have been posting soixante neuf when it cums to sg.

Seriously soixante whatever is a good number for 99 year condo as most of the en bloc properties sold are above 30 years old.

https://www.google.com.sg/amp/s/www...-bloc-past-three-years-above-30-years-old-mnd

 

[ginfreely]

Seriously soixante whatever is a good number for 99 year condo as most of the en bloc properties sold are above 30 years old.

https://www.google.com.sg/amp/s/www...-bloc-past-three-years-above-30-years-old-mnd

See? Soixante trois proven also a good number for 36 years old 99 year condo Park West sold on third time after two previous failed attempts.

https://www.propertyguru.com.sg/pro...7886/park-west-condo-sold-en-bloc-for-840-89m

Park West’s 99-year leasehold tenure started on 8 March 1982, but SingHaiyi Gold intends to pay about $146 million to fully renew its term. The company also plans to fork out a differential premium of S$144.6 million to redevelop the site to its maximum permissible gross floor area of about 1.46 million sq ft at a height of at least 24 storeys.

 

[eatshitndie]

See? Soixante trois proven also a good number for 36 years old 99 year condo Park West sold on third time after two previous failed attempts.

https://www.propertyguru.com.sg/pro...7886/park-west-condo-sold-en-bloc-for-840-89m

Park West’s 99-year leasehold tenure started on 8 March 1982, but SingHaiyi Gold intends to pay about $146 million to fully renew its term. The company also plans to fork out a differential premium of S$144.6 million to redevelop the site to its maximum permissible gross floor area of about 1.46 million sq ft at a height of at least 24 storeys.

sg enbloc frenzy for private condos is on fire. shiok! hdb tenants with 69 years of remaining lease can go jump if they don’t have private condos on the side for anchor.