News @ this hour| Time is running out for 299 blocks of Singapore’s oldest HDB flats as prices flatten and demand slows

[Chunchunmaru]

I would guess that HDB will apply some private property practice on this.

They'll offer a lease buyback at below market rate and tell the existing owners, you have first pick of the newer flats but they will be sold at market rate, and the units will be much smaller (so they don't have to out of pocket any funds). So technically they could buyback a 1,200sqft unit offering 300psf, then sell to the current owners a 800sqft unit at 500psf.

And just like that, the big G has makan-ed 50% of the floor area for virtually nothing except demolition and construction costs.

It will be put to a vote, above xx%, it'll go through. If they can't hit the approval target, they will let the lease run to the ground and the existing owners lose everything.

You know our government. Laws can appear overnight with zero warning.

No one profits from this arrangement except HDB. No one.

 

[NintendoSwitch]

Ageing flats, shrinking value​

Figures from ERA indicated that there are 299 HDB blocks built in the 1960s, with 24,428 units in total. Most are concentrated in Queenstown, Toa Payoh, Bukit Merah and Geylang, with smaller clusters in Kallang Whampoa and the Central area.

One of the government’s objectives when it launched the public housing programme in the 1960s was to ease overcrowding in the city centre by providing affordable flats in the city fringe area, Mak said.

Most of these 60s-era flats are three-room and four-room flats, statistics from Mogul.sg showed.

Analysts expect these ageing flats to follow the trajectory observed in older private leasehold homes.

According to Huttons’ Lee, prices of 60-year leasehold terrace houses at Lorong 3 Geylang tapered off sharply as their leases came to an end.

https://www.businesstimes.com.sg/pr...est-hdb-flats-prices-flatten-and-demand-slows

HDB price crash? Monitor Leezard time to leepent.

 

[rider83]

I got an idea!

If a HDB has less than 30 years lease remaining, can sell to foreigners and foreigners need not pay ABSD provided this unit is in PAP ward. If not in PAP ward, can sell and seller must pay SSD.

In both sense, this will keep prices high correct?

 

[semiret]

We must understand that during 60s-70s. Gov wants to develop SG as such they built a lots of flats during this period to relocate residents to HDB flats from villages. If they wants to SERS the flats that hits 70yr mark. Where got the money and land to build for them? So from beginning they already decided no way to SERS those flats. Those flat owner just too naive to think SERS will be offer to them near their leased ending part. Haha

 

[The_Davis]

This is too good an offer. $0 should be given.

Early voluntary lease buy back scheme lah

 

[eurofunk]

Next time Toa Payoh peak and boon keng Dbss see which one will be last bagholder

 

[Lifeinmotion]

If you travel around In Europe, say France or Italy, you will notice that plenty of their buildings in the city centre are over a hundred year old or perhaps even more.

Why is a concrete building built with steel foundation in a non earthquake zone be able to hold up?

Electrical, lifts and plumbing will need to be refresh yes, but is it really necessary to keep tearing down perfectly good buildings after 20 to 30 yrs?

We keep getting lectured on issues of sustainability, saving a straw and a plastic bag at a time, all while we see perfectly good buildings gets pulled down in the name of evolution.

Same with cars and coe. Nonsense system

 

[hardwriter]

I doubt will have full replacement.

Lets just wait and see.

I believe currently the 1st few HDB flats to see their leases run out are those Stirling Road ones, by 2060s.

We all know the narrative out there is saying no replacement.

Which means sinkies will never be able to enjoy and inherit intergenerational wealth unless their parents own 999 or freehold properties.

So if no replacement means sinkies chewren will forever need to slog. Hows that going to play for the future electorate? Only time will tell

 

[qhong61]

We all know the narrative out there is saying no replacement.

Which means sinkies will never be able to enjoy and inherit intergenerational wealth unless their parents own 999 or freehold properties.

So if no replacement means sinkies chewren will forever need to slog. Hows that going to play for the future electorate? Only time will tell

Why must parents pass on their freehold property to children?

 

[daniel_83]

You think HDB will pay $1m for lease buy back? At most give you $100k to $200k only

you think residents so stupid to give up their big flats for $100 to $200k?
Then move to a 2room flexi with ~25years lease?

might as well continue to stay and rent out rooms for income
1 room can get $1k+

or even move out and stay with kids, rent out whole house for $3k+ at today's rates

or move to JB!

 

[Suporter]

The agent very chek ark if sell to unknowingly buyer

Agents with conscience?

 

[lightningflash]

In before mybfd

 

[rabies79]

We must understand that during 60s-70s. Gov wants to develop SG as such they built a lots of flats during this period to relocate residents to HDB flats from villages. If they wants to SERS the flats that hits 70yr mark. Where got the money and land to build for them? So from beginning they already decided no way to SERS those flats. Those flat owner just too naive to think SERS will be offer to them near their leased ending part. Haha

Hard to point that they are naive when 'someone' keeps promoting HDB will never devalue and deemed as asset. But who knows...... lol

 

[semiret]

Hard to point that they are naive when 'someone' keeps promoting HDB will never devalue and deemed as asset. But who knows...... lol

All Geylang lorong 3 units have been vacated and land returns to SLA by Jan 2021. I pasted the link below.

https://www.straitstimes.com/singapore/all-191-units-at-geylang-lorong-3-vacated-sla

It already tell you Gov not going extend the leased for houses. Yet they still think otherwise. If I remembered correctly even b4 LW takeover he also mentioned b4 when the leased of your house is 0 your value will also be 0. But since then they've some changes to it. So may be not when your leased hits 0 you needs to top up then will extend leased and prevent your house hits 0 value so soon. Just my thought.

 

[lampano]

Edmw is like a broken recorder now, always repeat cycle, repeat songs, topics.
lease decay, cpf, 1m retirement, hdb prime etc

 

[The_Davis]

you think residents so stupid to give up their big flats for $100 to $200k?
Then move to a 2room flexi with ~25years lease?

might as well continue to stay and rent out rooms for income
1 room can get $1k+

or even move out and stay with kids, rent out whole house for $3k+ at today's rates

or move to JB!

You be surprised some people fail math

 

[Godeau]

This is a very easy problem to solve actually. Instead of lease buyback, implement a lease sale instead. Now left 30 years lease tio bo. Then HDB can offer to sell additional 20 years lease then the flats will have 50 years lease now right?

But if you think in terms of dollars and cents, like what our govt does all the time, why would they do that? With the exception of point blocks, last time flats are mostly low floors, some 11 storeys, some just 4 storeys, they take up a huge chunk of land space, why prolong it when new money can be made from new flat bto sales? Just vers the whole bunch and funnel these people into Flexi flats or their equivalent lease left flats and build up spanking brand new 30-40 storey btos instead to milk the younger populace.

 

[Shion]

Lorong 3 Geylang is a wake up call to all

https://www.straitstimes.com/singapore/all-191-units-at-geylang-lorong-3-vacated-sla