Nine out of 10 elderly buyers of two-room flexi units opt for shorter leases

SINGAPORE — A housing scheme that allows senior citizens to buy two-room flats on shorter leases has remained popular among the elderly, with nine out of 10 taking up the option, the Housing and Development Board (HDB) said on Sunday (Feb 24).

Launched in 2015, the “2-room Flexi Scheme” lets elderly buyers pick a lease length that is best suited for their needs, as opposed to the full 99-year lease.

The lease length ranged between 15 and 45 years, with minimum lease periods differentiated based on the buyer’s age.

For example, an elderly buyer aged between 55 and 59 is only allowed to buy flats that have minimally 40 years of lease left.

A buyer who is 80 years old and above can opt to purchase a unit with just 15 years of lease left.

POPULARITY OF LEASE PERIODS

• Most popular: 40-year lease (29 per cent of elderly buyers)

• 2nd: 35-year lease (25 per cent of elderly buyers)

• 3rd: 30-year lease (15 per cent of elderly buyers)

Only 139 elderly buyers opted for the shortest lease of 15 years.

The oldest buyer who picked a 15-year lease was 99 years old when the individual applied for it.

Since the scheme’s launch, about 22,000 units have been offered. About 87 per cent, or 16,169 units, have been booked out of the 18,515 flats offered in 19 sales exercises that have been completed so far.

More than half — 54 per cent — of the units sold were bought by elderly citizens, with the rest taken up by singles and families.

HDB said that it will offer more two-room flexi flats in Kallang Whampoa, Tengah and Woodlands for the May 2019 sales exercise.