Lease buyback scheme extended to 4-room flats

SINGAPORE — Following long-standing calls, the Enhanced Lease Buyback Scheme has been extended to owners of four-room flats.

Prime Minister Lee Hsien Loong last night announced the change, which will open up the asset monetisation option to more than half of all flat owners here.

Noting that many seniors still prefer to age in the comfort of their own homes despite regarding the Silver Housing Bonus that comes with downsizing to a studio apartment as an attractive option, Mr Lee said: “I fully understand that the surroundings are familiar, your old friends are around you, your neighbours you’ve known ... for so long you don’t want to uproot yourself, move somewhere else unfamiliar, set up and then have to establish your networks and your links all over again.

“So HDB (Housing and Development Board) had studied this carefully and I’m happy to tell you ... we will extend the Lease Buyback Scheme to four-room flats.”

The scheme, which was introduced in 2009, currently allows elderly owners of three-room or smaller flats to retain 30 years of their lease and sell the remainder to the HDB, in return for a lump sum and monthly payouts.

Although the take-up rate has been low, the Government said previously that it would consider extending it to those who own four- and five-room flats.

Earlier this month, National Development Minister Khaw Boon Wan said a total of 367,000 households here had at least one flat-owner aged 55 years and above. Of these, 32 per cent live in three-room flats, 44 per cent in four-room flats and 24 per cent in five-room flats.

However, only 326 households have signed up for this scheme since it was updated in February last year.