‘Factually and legally wrong’ to suggest HDB buyers do not own their flats: Lawrence Wong

SINGAPORE — It is “factually and legally wrong” to suggest that Housing and Development Board (HDB) flat buyers do not own their units, but are simply renting them, said National Development Minister Lawrence Wong on Tuesday (Sept 4).

Speaking at the annual HDB Professional Engagement And Knowledge-sharing (Peak) Forum, Mr Wong noted “allegations going around” and reiterated comments he made previously, as well as remarks by Prime Minister Lee Hsien Loong on the 99-year lease issue.

“There is no basis to such a claim,” he said.

Mr Wong, who is also Second Minister for Finance, said that while all feedback and views about the issue were welcome, the debate “must always be based on facts, not misinformation and half-truths”.

Mr Lee had, on Aug 24, chided those who argue that the 99-year leases of HDB flats make them "merely extended rental and not a sale". "I find this argument frankly amazing. Many private properties are held on 99-year leases too, and yet nobody argues that they are merely being rented," he said.

"HDB lessees have all the rights over their flats that owners of such leasehold private properties have. You can live in it, you can transact it, you can bequeath it to your children. In fact HDB owners enjoy extra privileges because HDB flats get upgraded from time to time, with generous government funding,” Mr Lee added.

On Tuesday, Mr Wong reiterated the fact that all buyers of leasehold properties — whether public or private — “enjoy ownership rights over their properties during the period of lease”.

He noted that all sites for private residential land in Government Land Sales programmes since 1967 have been sold on leases of not more than 99 years. This was because of the limited amount of land in the Republic, and the need to recycle land for future developments.

“These facts are clear… the law is very clear… and it’s important to set the record straight,” Mr Wong said.

The minister also acknowledged that the work of strengthening public housing and home ownership is not something which the Government can do alone, but requires “close partnership with Singaporeans”.

BACKGROUND

• The 99-year lease decay issue first came into the spotlight in March last year, when Mr Wong cautioned that not all flats will be eligible for the Selective En Bloc Redevelopment Scheme (Sers). He wrote: "As the leases run down, especially towards the tail-end, the flat prices will come down correspondingly. So buyers need to do their due diligence and be realistic when buying flats with short leases. This is especially important for young couples, who have to plan for a much longer future."
• At this year’s National Day Rally, Mr Lee, for the first time, addressed the lease decay issue. He explained that HDB flats are sold with 99-year leases so that when they expire, the Government can redevelop the land and build new flats for future generations. Mr Lee also announced that every HDB flat can expect to undergo major upgrading twice during its 99-year lease period. A new Home Improvement Programme (HIP) II will be rolled out for ageing units at the 60- to 70-year mark.
• At the same time, the HIP scheme — which currently covers flats built up to 1986 — will be extended to blocks constructed up to 1997.
• The authorities are also going to start planning for a new Voluntary Early Redevelopment Scheme (Vers), which will allow owners of HDB flats in a precinct to vote if they want the authorities to take back their apartments for redevelopment at around the 70-year mark of their lease.