Oral answer by Ministry of National Development on successful applications for the Lease Buyback Scheme and plans to improve and expand the scheme

Nov 7, 2022

Mr Liang Eng Hwa: To ask the Minister for National Development (a) what is the current number of households that have successfully applied for the Lease Buyback Scheme since it was implemented; (b) whether there are plans to improve and expand the scheme; and (c) what are the common reasons why home owners are not considering the scheme.

Answer:

Since its introduction in Mar 2009, about 9,200 households have joined the Lease Buyback Scheme. The scheme aims to improve the retirement adequacy of elderly flat owners by enabling them to sell a portion of the lease of their HDB flat to the government, and join CPF Life. In return, they receive a stream of income in their retirement years, while continuing to live in their flat.

2        When the Lease Buyback Scheme was first introduced, only owners of 3-room or smaller flats were eligible. The Scheme has since been expanded to owners of all flat types, including 5-room and larger flats. In Apr 2020, the maximum LBS bonus was increased by 50% across all flat types, to $30,000 for 3-room and smaller flats, $15,000 for 4-room flats, and $7,500 for 5-room and bigger flats.

3        There are various reasons why elderly flat owners may not be keen to take up the Lease Buyback Scheme. Some may have other sources of income to meet their retirement needs, while others may prefer to take up other monetisation options such as right-sizing to a smaller flat, or renting out spare rooms or their flat. 

4        HDB will continue to review the housing needs of our elderly flat owners to ensure that our housing policies remain relevant and responsive to the changing needs and preferences.