Forum: Buyers, sellers of HDB flats must fully grasp impact of lease decay

I appreciate the commentary “With Vers, it’s time to get real with lease decay and the asset value of flats” (Aug 29), which was well thought-out.

From various media reports, podcasts and even coffee shop conversations, it is apparent to me there are many people who may not be fully aware of the implications of a 99-year lease.

The Government previously emphasised that HDB flats can serve as a “nest egg” for retirement.

But, at the same time, there have also been reminders that the flats will be returned to HDB after the lease runs out. Buyers in the resale market have also been reminded not to overbid for mature flats and to be rational while appraising such flats.

With such mixed signals and million-dollar property listings, current and future generations need to be savvy if they dip into the HDB resale market.

I suggest that the Housing Board conduct a mandatory workshop to educate buyers and sellers – especially in the resale market – on 99-year leaseholds and the eventual financial impact of lease decay. 

This could help people view public housing as having a utilitarian purpose, instead of an investment – that simply speaking, they are just renting their flat on a long-term 99-year basis.

Tan Swan Hwee