Public Education on Opting for Lease Buyback Scheme or Downgrading to Smaller Flats

Ms Ng Ling Ling asked the Minister for National Development (a) between 2017 and 2022 (to date), what is the annual number of seniors aged above 65 who downgraded from their existing HDB flats; (b) what is the average waiting time for them to secure new 2-room Flexi flats; (c) whether there is a sufficient supply of such smaller new flats to meet their demand in the next five years; and (d) whether the Ministry will promote more public education on the option between the Lease Buyback Scheme and downgrading to a smaller flat.

Between 2017 and 2021, the average annual number of seniors aged 65 and above who owned a 3-room and larger flat, and subsequently booked a 2-room Flexi flat in Housing and Development Board (HDB)'s Build-To-Order (BTO) exercises ranged from about 90 to about 440. For 2022, up to the month of August, the number of such seniors was 331.

As seniors might not apply in consecutive BTO exercises, it is not meaningful to track the average time between their first flat application and when they book a 2-room Flexi flat. Based on HDB's records, the average number of attempts for seniors to secure a 2-room Flexi BTO flat was about 1.6.

To increase seniors' chances of securing a 2-room Flexi flat, at least 40% of the 2-room flat supply is set aside for them. To meet the strong demand for public housing, we are also ramping up BTO flat supply and will launch up to 23,000 flats per year in 2022 and 2023, an increase of 35% from the 17,000 flats launched in 2021. The increased flat supply provides more housing options for all buyer groups, including seniors.

In November 2022, we will be offering some 9,500 BTO flats. Of these, 2-room Flexi flats will be offered in Bukit Batok, Tengah, Yishun and Queenstown. The flats in Queenstown will be our second Community Care Apartments (CCA) pilot, with about 200 CCA units on offer.

Next year, we will continue to launch 2-room Flexi flats in different towns. For instance, for the first BTO exercise in 2023, 2-room Flexi flats are planned in Kallang/Whampoa and Tengah. We will continue to monitor demand, and ensure that the supply of public housing remains responsive to the housing needs of our population, including seniors.

We have adopted a range of efforts to reach out to seniors on their housing monetisation options. On top of providing the details on the HDB InfoWEB, HDB works with media outlets, organises public talks and seminars, and sets up mini-exhibitions and enquiry booths at local community events. CPF Board invites members turning 55 and 65 years old to attend a CPF Retirement Planning Service which includes sharing on available housing monetisation options. HDB and CPF Board also send out letters on housing monetisation options to seniors. The letters provide seniors with personalised estimates of the proceeds and additional CPF monthly payouts they can receive if they take up the Lease Buyback Scheme and information on right-sizing with the Silver Housing Bonus.

We will continue to explore ways to increase our outreach and communication efforts to seniors on the various housing monetisation options.