Are changes in HDB and CPF policies, and remarks by politicians causing a crash in the prices of older HDB flats?
I refer to the article “Owners worry older HDB flats a depreciating asset” (Sunday Times, Apr 15).
It states that “The buyers were reacting to National Development Minister Lawrence Wong’s remarks about people buying old HDB flats in the hope that they will be chosen for the Selective En bloc Redevelopment Scheme (Sers).
Mr Wong had cautioned in March last year that not all old HDB flats will be eligible for Sers and those not selected will eventually be returned to the state when the 99-year lease matures.
In general, the value of most older HDB flats starts to depreciate more steeply after the 40-year mark.
About 70,000 flats, or 7 per cent of the total stock of around one million, are over 40 years old.
By 2030, more than 400,000 HDB flats will be left with a remaining lease of 59 years or less, property analyst Ku Swee Yong said.”
As to “For four-room flats in Toa Payoh, the price gap can be as high as 65 per cent, according to OrangeTee” – there is an urgent need for the HDB to review their policies, as the HDB flat may generally be the biggest asset of many Singaporeans.
Arguably, recent policy changes to HDB and the use of CPF for HDB policies, and remarks by politicians may have literally caused a crash in the prices of older HDB flats.
Leong Sze Hian