Nine out of ten families who sold part of their remaining lease back to HDB got betwe

Nine out of ten families who sold part of their remaining lease back to HDB got between S$100,000 and S$300,000 apiece

On average, roughly 1,680 families opt for the agency's Lease Buyback Scheme yearly.

Aug 14, 2024

Since 2009, more than 12,000 families have participated in the Housing & Development Board's (HDB) Lease Buyback Scheme, with approximately 90% getting between S$100,000 and S$300,000.

In an update on the initiative, HDB said that 53% of the 12,656 families who opted in resided in three-room or smaller apartments. Approximately 33% lived in four-room apartments, while the remaining 14% lived in five-room or larger flats.

According to HDB, the annual take-up rate has "remained steady," with an average of 1,680 families choosing for the agency's Lease Buyback Scheme.

In the first half of 2024, 892 homes adopted it.

The initiative allows qualifying seniors to sell a part of their flat's remaining lease back to the housing authority. These seniors must be at least 65 years old and have a gross monthly family income of S$14,000 or less. To sell to HDB, they must have lived in the flat for at least five years, had at least 20 years of lease, and not own any other private residential property.

The sale earnings are then used to fund the owners' Central Provident Fund (CPF) Retirement Accounts and to buy a CPF Life plan, which provides monthly payments for the rest of their lives. Any surplus after the retirement account top-up will be refunded to them in cash.

Seniors may get a lump sum payout as retirement income while continuing to live in their apartments for the rest of their life.

The majority of families who signed up for the Lease Buyback Scheme (60%) elected to keep their lease for 30 years. Approximately 5% chose 35 years, roughly 20% chose 25 years, 10% chose a 20-year lease, and 5% chose a 15-year lease.

Furthermore, HDB reported that the majority of families got cash payouts after filling up their retirement accounts. Households registered in the CPF Life plan got a median monthly payment of almost S$1,000.

In addition to the cash earnings, families who topped up their retirement accounts earned a cash bonus ranging from S$7,500 to S$30,000, depending on their flat type and account contribution.

To get the entire S$30,000, owners must deposit at least S$60,000 from their net revenues to their retirement account. As of the end of June, around 93% of homes participating in the plan had received the entire incentive.

In addition to the Lease Buyback Scheme, HDB said that seniors may augment their retirement income by renting out their whole unit or individual bedrooms.

In the first six months of this year, senior families submitted 10,301 applications to rent out the whole property and 21,219 applications to rent out beds.