Shorten leases to lower flat prices, say MPs
HDB units should be sold on shorter lease terms to make them affordable for low-income families and younger people, according to MP Gan Thiam Poh of Pasir Ris-Punggol GRC.
He revealed that rising home prices have alarmed many couples and upgrading families, while noting a "worrying" trend of younger people trying to purchase the biggest flat they can afford.
The government should consider building more affordable two- and three-room HDB units with shorter leases, like 30 or 60 years. At present, most HDB flats are sold with a 99-year lease.
"Such options will enable them to better manage and control costs for themselves," he noted.
Moreover, MP Zainudin Nordin of Bishan-Toa Payoh GRC called for changes that would help low-income families find their own flats. For example, HDB flats could be sold to those with limited financial resources but with shorter leases.
"If we make enough effort, I am confident we can think of a scheme to reduce the start-up burden on low-income families and young families, and they can be assured of a roof over their heads at a reasonable price," he added.
Furthermore, MPs also urged the government to provide a more flexible scheme in which the elderly could unlock the value of their units.
Lina Chiam, a Non-Constituency MP, said the Silver Housing Bonus, which gives eligible elderly homeowners S$20,000 to downgrade their flats, was "both impractical and unsuitable from a financial perspective."
She noted that a large part of the sales proceeds will go into Central Provident Fund (CPF) accounts, implying that those in urgent need of cash will have no outright access to the funds. Related Stories:Climb stairs to keep fit and stay healthy, says Khaw
New CEA rules could result in fewer property agents
Coney Island to be transformed into nature park
More from PropertyGuru:
Climb stairs to keep fit and stay healthy, says Khaw
New CEA rules could result in fewer property agents
Coney Island to be transformed into nature park
Singapore GDP growth to slow to 1-3%
