A Problem May not have Answer Potentially
Recently the issue of 99LH HDB flat has become a very hot topic. There are some related issues perhaps worth to look a deeper look.
Private 99LH Properties
If Government is offering when HDB flats reach 70yo, an opportunity to return to Government under some special schemes, then what about the private 99LH properties?
Yes, there is always an opportunity for these properties to be enbloc, but what are the chances especially those mega projects like The Bayshore, Bayshore Park, Lagoon View, Laguna Park, Mandarin Garden, Neptune Court (Not yet fully privatized), Braddell View, Pine Grove etc etc…
With the cooling measures on the demand aspect of the investors, home owners and developers, exit problem will be worsen on the existing owners as days pass.
https://www.squarefoot.com.sg/market-watch/land-area
HDB 99LH
When the HDB flats turn 70yo, what is the scheme that the Government can afford to offer to satisfy the owner (technically, not owner).
How will the private 99LH people look at the scheme as an equitable scheme to them especially tax payer money is used.
What is the apportionment method HDB is going to use? Same as SERS, all units have the same amount of compensation disregards of level and view?
Common to Both 99LH Private and 99LH HDB
When the 99 lease is lapsed, you have no property and no money in CPF. On top of that, CPF may demand you to pay back the principals with accrued interest.
Maintenance is a very major issues and costly to address.
Finding tenants will also getting more difficult for older properties.
Difficult to find buyers unless they are cash rich and willing to buy old properties.
Conclusion
The problem is being deferred for 20 years, and I may or may not be able to see it. This most likely will happen in the 5-6G leaders.
Just wonder, who will be the 5-6G leaders whom willingly take over the hot potato
