Commentary

Will My HDB Flat Be Worth $0 When The Lease Expires, And Should We Change Things?

  • February 9, 2022
  • 7 min read
Join our Telegram group for instant notifications
Join Now

Ryan J

Subscribe
Notify of
guest
9 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Paul
Paul
1 year ago

Hi Stacked team, thanks for the great articles and research.

How do these points affect private condos? I’m wondering about the investment potential of purchasing a middle-age leasehold property in D10. Let’s say, Draycott 8. It is a 26-year old lease, with low density (139 units in 150000sqft area), but for some reason the price has come down quite a bit since it was launched 15 years ago and I’m wondering if the price will continue to drop as the lease gets shorter. On the other hand, such large plots are not common in D10. Thoughts?

Gabriel Goh
Gabriel Goh
1 year ago

https://singapore2b.blogspot.com/2019/01/lease-decay-solutions.html

1) Allow HDB flats with less than 20 years of lease left, to be rented out by the owner without MOP or other conditions, even on short term rental (i.e. AirBnB)
2) This will raise the market value of the flats.
3) Owner-occupiers who do not want to rent, can sell to “entrepreneurs” who would rent out the flats (AirBnB) or to sub-tenants. Most of the lease decaying flats would be older flats with larger space and can be divided to rent to young tenants (undergrads, etc).

Stacked Homes
Admin
1 year ago
Reply to  Gabriel Goh

Interesting! But what about the supply side – if many people did this, there would be a large number of vacant flats, thereby depressing the rental value and also the selling price overall since the returns are lower.

Robert
Robert
1 year ago

Good article and good info. I am just pessimistic about having a painless solution. That’s why I will never buy an HDB flat even if I am eligible (I am not as a foreigner).

Cindy
Cindy
1 year ago

Robert, thank you for the detailed analysis. Would like to check your view of the old HDB flats around Beo Crescent Market? Any potential for SERS ? Thank you.

Cindy
Cindy
1 year ago

Thank you for the detailed analysis. Would like to check your view of the old HDB flats around Beo Crescent Market? Any potential for SERS ? Thank you.

Stacked Homes
Admin
1 year ago
Reply to  Cindy

Hi Cindy, it’s hard to say whether there’d be any potential for SERS there. Only a small fraction of HDBs undergo SERS. We’ll have to conduct a more detailed analysis on this, so this could be a topic for another time!

Sam
Sam
1 year ago

Hi Cindy, Beo Cres is an old estate with mainly low rise HDBs and it is sandwiched between taller HDBs at Havelock Road and Boon Tiong Road. Land here is quite under utilised especially with the open carpark at Havelock Food Centre. From an urban planning perspective, It makes sense to increase the plot ratio to match the neighbour’s high rise characteristics.

Sharon
Sharon
1 year ago

Enjoy reading the articles from Stacked – informative and insightful!
I happen to find out actually there are some HDB which are built earlier than their lease start dates (while looking at resale flats in central region).
– one example is 050032 refer to: https://www.roots.gov.sg/Collection-Landing/listing/1481749 for built year – the lease start is 1983 (refer HDB map services) however the built year is 1968.
– I am really curious if HDB will note to these interesting ‘restart lease’ blocks when considering SERS or maybe test the durability of the construction done in the early days (1960s).

Latest Posts

5 Most Expensive HDB Flats On The Market Right Now From 1.5 Million
Units Of The Week 5 Most Expensive HDB Flats On The Market Right Now (From $1.5 Million!)
December 7, 2023
Lightwell Signature Park 23
Home Tours How A Singaporean Architect Transformed An Old 1990s Apartment Into A Modern Haven
December 6, 2023
December 2023 BTO Launch
BTO December 2023 BTO Launch Review: Ultimate Guide To Choosing The Best Unit
December 6, 2023
queenstown bto 2023 launch 1
BTO December 2023 BTO Launch: An Overview Of The 6,057 Units On Offer
December 5, 2023
Stacked Featured Image Template 1
Editors' Pick 10 Cheapest 3-Bedder Resale Condos In 2023 Under $1 Million
December 4, 2023
Jalan Jelita 9
Editors' Pick Touring Jalan Jelita: Freehold Landed Houses Behind Cold Storage Jelita And Within 1 km Of Henry Park Primary School
December 4, 2023
photo 2023 12 03 20.16.29 1
News What Is The Impact Of The Upgrades To Bayshore?
December 3, 2023
Inside A Beautiful Garden Home With A Unique Rotatable TV Console
Living In How A Small Telok Kurau Apartment Was Transformed Into A Beautiful Garden Home
December 3, 2023
Neptune Court exit 2 pic
Condo Reviews I’ve Lived At Neptune Court In The East Since 2014, Here’s My Review Of What It’s Like To Live In An Old Apartment
December 2, 2023
johor bahru causeway
Advice We Own A JB House, A Punggol Condo, & A Executive HDB: Should We Sell Both Our HDB And Condo Or Rent Them Out For Retirement?
December 1, 2023
5 Cheapest Biggest HDB Flats Above 1345 Sqft From 650k
Units Of The Week 5 Cheapest & Biggest HDB Flats Above 1,345 Sqft From $650k
November 30, 2023
ECs
Buying 3 Upcoming Executive Condos (EC) That Will MOP In 2024 (One Already Recorded $630k In Profit)
November 29, 2023
Lentor Green and Lentor Grove Featured Image
Editors' Pick Touring Lentor Green & Lentor Grove: Affordable Freehold Houses From $3.6m Right Beside Lentor MRT
November 26, 2023
Jayelle Vanity 1 of 2 at door compressed
Living In Inside An Interior Designer’s Own 800 Sqft Brutalist Home In Singapore
November 26, 2023
sembawang hills estate petrol
News How The Inevitable Decline Of Petrol Stations May Affect Your Property In Singapore
November 26, 2023
large one bedroom unit
Property Picks 10 Biggest One-Bedroom Condos With Maximum Interior Space (From 1,000 Sqft)
November 25, 2023