New HDB scheme coming soon
The housing board will be consolidating two-room flats and studio apartments under a single scheme, revealed National Development Minister Khaw Boon Wan in a Channel NewsAsia report.
Speaking on Chinese radio station Capital 95.8FM, Mr Khaw said the new scheme, dubbed Two-room Flexi, will allow singles, senior citizens and low-income families to acquire two-room flats at flexible tenures, depending on their individual needs. He added that more details will be announced over the next few weeks, with the unified scheme expected to be launched during the next BTO exercise in August.
Currently, studio apartments are meant for seniors who have sold their previous flats to finance their retirement. These units come with a 30-year lease and are meant for those who are at least 55 years of age. Two-room flats, which come with a 99-year lease, are meant for singles or families.
There is a need to unify both schemes, since two-room units and studio apartments tend to be of a similar size, said Mr Khaw. However, the tenure a home buyer is eligible for will depend on his age.
One example is (this): should we allow a young couple to buy a 50-year lease because they think the price will be (cheaper)? While the price may be cheaper for them, our worry is 50 years is too short for them, because if they are, for example, 25 years old, in 50 years, by the time the lease runs out, they will be 75 years old, he explained.
And the key is, even with a 99-year lease, because of the very heavy subsidy we are granting to first-timers, they can well afford it. It's much better that they buy a 99-year lease; if that is the outcome we desire, I think we have to make sure there are restrictions. Such people will not be allowed to buy homes with a lease shorter than 99 years, added Mr Khaw.
Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories emailcheryl@propertyguru.com.sg
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