Oral Answer by Ministry of National Development on homeowners selling their flats or private properties to rightsize

Sep 10, 2018

Question by: Mr Ong Teng Koon

Mr Ong Teng Koon: To ask the Minister for National Development whether more details can be provided regarding the usage of CPF funds for buying HDB flats with remaining leases of less than 60 years.

Question by: Mr Chong Kee Hiong

Mr Chong Kee Hiong: To ask the Minister for National Development in view of the increasing number of elderly Singaporeans with HDB flats and private properties with leases of less than 60 years and the restrictions on the use of CPF for such properties, what measures are in place to assist such owners who have difficulty selling their properties to downgrade to smaller flats or properties.

Answer:

Owners of older HDB flats and private residential properties are generally still able to sell their flats in the resale market today.  Potential buyers of such properties come from a wide spectrum of life stages and circumstances, and have different housing needs.  For example, elderly buyers, or families who are not yet ready to commit to a longer lease, may choose to buy a residential property with a shorter lease. Older residential properties are also attractive to some buyers as they are usually more centrally located and served by established amenities. 

MND is also working with CPFB on how we can provide more flexibility on the use of CPF monies to purchase flats with shorter leases while safeguarding retirement adequacy.  We are working out the details of these changes, and will share them when ready.

Besides selling their HDB flats or private residential properties, elderly homeowners can consider other monetisation options to unlock the value of their properties.  These options include renting out their spare bedrooms or the whole property, or selling back part of their lease to HDB under the Lease Buyback Scheme. We have recently announced the extension of the Lease Buyback Scheme to 5-room and larger HDB flats so that more Singaporeans can benefit from the scheme.

The Government will continue to monitor the market, and review the policies to help Singaporeans with their housing monetisation options.