Written answer by Ministry of National Development on statistics on proceeds received from HDB Lease Buyback Scheme in past five years

Oct 15, 2024

Question No: 6129

Question by: Mr Zhulkarnain Abdul Rahim

To ask the Minister for National Development for the past five years, what is the average proceeds received by each family from the HDB Lease Buyback Scheme for each type of HDB-room flat.

Answer:

Under the Lease Buyback Scheme (LBS), the household will sell part of their remaining flat lease to HDB, after retaining a lease that is sufficient to cover the owners until at least 95 years old. 

The LBS proceeds is computed based on the market value of the flat at the time of application for LBS, less the value of the lease retained by the household and any outstanding monies due to HDB. Hence, the LBS quantum received would vary depending on the age of the flat, the duration of the lease sold back to HDB, and prevailing market conditions.

The LBS proceeds will be used to top up the owners’ CPF Retirement Accounts, to boost their monthly CPF LIFE payouts.  Additionally, the household may receive an LBS bonus of up to $30,000 for 3-room and smaller flats, $15,000 for 4-room flats, or $7,500 for 5-room and bigger flats.

From 2019 to 2023, the average LBS proceeds plus the LBS bonus received per household was about $261,000 for 5-room and bigger flats, $212,000 for 4-room flats, $168,000 for 3-room flats, $153,000 for 2-room flats and $98,000 for 1-room flats.