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Thread: Tendering out plots with 60-year lease may be the way to go

  1. #1
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    Default Tendering out plots with 60-year lease may be the way to go

    Small Change

    Tendering out plots with 60-year lease may be the way to go

    Loh Keng Fatt
    News Editor

    Jun 17, 2018

    Shorter tenures could be more in keeping with the times and realities


    Almost every day, it seems, another housing estate or condo throws its hat into the en bloc ring.

    It seems like not many have much of an attachment to their home, not when there is a windfall to be made from any upturn in market sentiment.

    And those who keep tabs on property cycles - to gauge when to buy their first home or invest in a second unit - will know that the en bloc fever reliably comes round every time the market rebounds from a prolonged lull.

    Of course, residents may also want to cash out because the upkeep of an older project can be prohibitive.

    Witness Golden Mile Tower in Beach Road, where all four lifts recently went kaput, requiring people to walk all the way up to the 22nd floor.

    Condos also have to spend to keep other facilities like swimming pools in working order and refurbish facades so as not to be overshadowed by posher projects in the vicinity.

    But even residents of newer condos have succumbed to cashing in.

    Cairnhill Heights was built in the 1990s while 11 Balmoral Road came up in the mid-1990s.

    Completed in the late 1980s, Makeway View in Newton is also not that long in the tooth.

    Neither are Hollandia and Eunos Mansion, built in the mid-1980s, while Ivory Heights and Florence Regency are privatised HUDC developments from the 1980s.

    Only Pearlbank - whose 99-year leasehold tenure started from June 1970 - bucked the trend.

    Which begs the question: Should the Government perhaps not sell all plots in its land sales programme under 99-year leases?

    Is a lease like 60 years more in keeping with the times and realities?

    A shorter tenure, not uncommon in many other Asian countries, also means that the entry cost for a first-time buyer is lower, since the land cost should be lower than that of a 99-year plot.

    With the recent Eunos Court Build-To-Order exercise pricing four-room 99-year leasehold HDB units up to $590,000 and even similar-leasehold two-room condos in suburban areas approaching a million dollars, the dream of acquiring a home, especially for younger Singaporeans, is not easy to attain.

    Even if the norm is still to go for 99-year leases, there should be some plots that are tendered out at 60-year terms to allow for greater flexibility, innovation and experimentation in the market.

    This would also recognise some socioeconomic realities like the greater number of singles, families with fewer children, even none, and a growing elderly population who may want to switch to a cheaper home with a shorter lease.

    The ageing population - 65 years and above - is expected to reach 900,000 by 2030.

    The Housing Board may want to offer shorter leases for a greater variety of new flats.

    Singaporeans aged 55 and above can already choose a short lease of between 15 and 45 years, in five-year increments, for two-room Flexi units. The chosen lease has to cover them up to the age of at least 95.

    But there are conditions in this scheme, which started in 2015, with no open sale on the market and rental of even a room.

    Since its introduction in the November 2015 sales exercise, the HDB has offered about 10,000 two-room flexi flats, The Straits Times reported in March last year.

    Why not expand the scheme to bigger flat sizes, too? For starters, a 60-year target sounds reasonable.

    The proposal for shorter leases is not entirely new, given that it has been aired by some people every now and then, mainly as one way to make housing more affordable.

    The millennials may be more open to shorter-leasehold properties, compared to their parents and grandparents.

    In fact, in some cities around the world, they have also been in favour of renting rather than be sucked into the grind of paying for pricey homes.

    Being well-read, many are aware that homes in some densely populated countries such as China have tenures of 50 years.

    And if they still hanker for a windfall from selling en bloc, even owners of a 60-year leasehold condo could still take a crack at it 20 to 30 years down the road, similar to the age of many properties going for collective sales now.

  2. #2
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    The writing is on the Wall for a long time, be patient private property owner will soon be able to buy HDB again without selling their private property.

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    Quote Originally Posted by Arcachon View Post
    The writing is on the Wall for a long time, be patient private property owner will soon be able to buy HDB again without selling their private property.
    How I wish that day to come. Hahaha

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    Quote Originally Posted by Arcachon View Post
    The writing is on the Wall for a long time, be patient private property owner will soon be able to buy HDB again without selling their private property.
    Possible scenerio for the U-turn in policy but there must be enough justifiction
    - Only Sg Pte Pty owner can buy HDB
    - Only can buy HDB with remaining lease less than 50 years (let free market take care of the lease buy-back scheme, assist in retirement monies)
    - ..... any other possible criteria

    Going back to the intent of the policy on why govt disallows, to ensure that public housing prices do not run too high due to the purchasing power of pte owners? So why will govt allow in future, ... to prevent prices falling too far?

    https://www.straitstimes.com/forum/letters-in-print/hdb-will-review-policies-to-ensure-stable-public-housing-market

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    I like this suggestion. Worthwhile for the G to consider.

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    Start with 75 or 80 LH first...
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by Kelonguni View Post
    Start with 75 or 80 LH first...
    If they allow longer lease to be sold as 2nd HDB Home, then the old 40-50 years lease will have problem being sold so ... did not really help the original intent of opening up the old HDB flats

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    Quote Originally Posted by Reisor View Post
    Possible scenerio for the U-turn in policy but there must be enough justifiction
    - Only Sg Pte Pty owner can buy HDB
    - Only can buy HDB with remaining lease less than 50 years (let free market take care of the lease buy-back scheme, assist in retirement monies)
    - ..... any other possible criteria

    Going back to the intent of the policy on why govt disallows, to ensure that public housing prices do not run too high due to the purchasing power of pte owners? So why will govt allow in future, ... to prevent prices falling too far?

    https://www.straitstimes.com/forum/letters-in-print/hdb-will-review-policies-to-ensure-stable-public-housing-market
    Only Sg Pte Pty owner can buy HDB
    PR buy private must sell HDB now.

    Only can buy HDB with remaining lease less than 50 years
    Most Private are Asset rich, cash poor may not help.

    let free market take care of the lease buy-back scheme
    Lease buy-back is not a good deal to the owner.
    HDB already remove control on resale valuation, those who know will be buying big big unit while most of the resale HDB is still sleeping.

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    In 2013 and 2014, 1,587 Singapore citizens and Permanent Residents (PRs) appealed to buy a HDB flat while holding on to their private property, the Ministry of National Development (MND) said in Parliament on 13 February.

    486 of them owned a local private property, while 1,101 owned an overseas private property.

    606 of the appeals, or 38 percent, were approved and all of them were appeals from Singapore citizens who were exempted from the rule based on their circumstances.

    According to media reports, Minister of State for National Development Desmond Lee said, "For example, if a resident were to have an extenuating circumstance such as financial hardship and needs to buy a HDB flat while the private property is undergoing mortgage sale - this could be a circumstance that would be looked into."

    Private property owners are not allowed to buy a flat direct from HDB. Owners who dispose their private property must wait 30 months before they are eligible to buy a flat direct from HDB.

    However, HDB may consider granting exemption to exceptional cases based on the merits of each case.

    As for resale flats, private property owners, along with their spouses, co-applicants and any occupiers listed in the resale application, must dispose of any existing ownership or interest in any private residential property within six months from the completion of the purchase of a resale flat.

    All flat owners also have to occupy the flat for a minimum period before they are allowed to invest in local and overseas private property.

    https://sg.news.yahoo.com/606-sporea...6--sector.html

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    Think they will just “relax” the cpf usage when more Hdb flats lease start to approach 60 or less years.

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    Shorter lease or buy back schemes are all wonderful for retirees like me in the future. I would even contemplate just leasing from HDB in the last mile of my life. I am sure there will be many such schemes 15-20 years from now where there are so many elderlies in Singapore which reminds us that local borns Singaporeans are going into extinction based on our current birth rate of ~1.16-1.17.

    https://www.channelnewsasia.com/news...-1-16-10002558

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    Quote Originally Posted by PropVestor View Post
    Shorter lease or buy back schemes are all wonderful for retirees like me in the future. I would even contemplate just leasing from HDB in the last mile of my life. I am sure there will be many such schemes 15-20 years from now where there are so many elderlies in Singapore which reminds us that local borns Singaporeans are going into extinction based on our current birth rate of ~1.16-1.17.

    https://www.channelnewsasia.com/news...-1-16-10002558
    Was talking to a security guard during my showflat duty.

    He don't look like a security guard some agent even think he is from the developer.

    Found out he put all his money oversea, stay in 2 room HDB BTO, got two wine cooler at home travel oversea a few time a year.

    He work as security guard so that he can receive free money from the government every years.

    Ownership of
    private property

    99-Year Lease

    Must not own or have disposed a
    private property within 30 months
    before the date of flat application.

    Short Lease (15 to 45 Years)


    Must dispose of their private
    property within 6 months after
    collection of keys to 2-room Flexi
    flat.

    https://www20.hdb.gov.sg/fi10/fi10297p.nsf/ImageView/CORPORATE_PR19082015_Annex%20A/$file/Annex+A.pdf

    https://dollarsandsense.sg/guide-to-...-for-retirees/

    Every Singaporean is allowed to purchase a maximum of 2 new flats (inclusive of DBSS and EC units). The taking of a housing grant when purchasing resale HDB flats from the open market is also considered as having used a chance.

    For the 2-room Flexi scheme, Singaporeans are allowed to apply for it even if they have previously used up their two chances. That is provided if they opt for the short-lease option offered by the scheme.

    The standard 99-year lease option for these 2-room flats is only available for those who have not used up their two chances.
    Last edited by Arcachon; 24-06-18 at 21:40.

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    If we ever have 60 or 75 LH plots, you really believe it will be cheaper?

    Perhaps the first few plots... subsequent ones will not be much cheaper than 99LH.

    as it is some 99LH are already more expensive than FH...

    Stupid writer

    giving govt ideas to squeeze more blood out of stones

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    Quote Originally Posted by proud owner View Post
    If we ever have 60 or 75 LH plots, you really believe it will be cheaper?

    Perhaps the first few plots... subsequent ones will not be much cheaper than 99LH.

    as it is some 99LH are already more expensive than FH...

    Stupid writer

    giving govt ideas to squeeze more blood out of stones
    Cannot blame the writer, not many know what is going on.

    There are lot of thing involved in property price.

    Even the simple thing like Money some Banker cannot even give you the correct answer.

    Just ask the Banker, Who print the Money?

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