Owners of ageing properties not in rush to sell
While the options of homeowners of ageing developments, are limited due to the properties’ short lease, they are still not in a rush to sell, reported Today Online.
The homeowners’ options were brought under the limelight following the Singapore Land Authority’s confirmation that no compensation will be given to the Geylang Lorong 3 homeowners upon the expiry of lease in 2020.
Based on data from the Urban Redevelopment Authority, 48 developments here are over 30 years old. In 10 years’ time, 13 of such developments will have less than 50 years left in their lease.
Despite this, Goh Boon Teck, who has been living with his wife and son at People’s Park Complex, which will be at the mid-point of its 99-year lease in three years, is keen at gaining a good profit from the S$400,000 he paid for the unit.
“There is a lot of interest from foreigners in this area, who don’t exactly need bank loans,” said Goh, referring to the difficulty of buyers in obtaining loans for properties with less than 60 years’ lease remaining.
“And even if I don’t manage to sell, I will have no problems renting it out.”
Meanwhile, some plan to stay in their unit for the rest of their lives.
A 76-year old retiree, who wanted to be known only as Mr Chen, said he intend to live out the rest of his life in his Sherwood Tower home. He revealed that he had planned on selling his unit but changed his mind upon finding property prices to be beyond his reach.
“Anyway, the 99-year lease won’t affect me but my children. They can choose to live here, or rent it out. It is up to them.”
This article was edited by Denise Djong.
