Debated in Parliament on 2 Oct 2018.
Mr Gan Thiam Poh asked the Minister for National Development (a) to date, how many 2-room flexi flats or studio flats of shorter lease have been sold in the resale market and what are the reasons for the sale; and (b) whether buyers who bought such 2-room flats can buy an additional lease to top up the balance of the lease.
Two-room flexi short-lease flats, and the earlier Studio Apartments (SA), are designed specifically for seniors to live out their retirement years. Before their purchase, seniors are made aware that these flats cannot be sold in the resale market. If they no longer need their flat, seniors can return the flat to HDB and receive a refund of the value of the unused portion of the lease.
Under the 2-room Flexi Scheme, seniors can buy a 2-room Flexi flat on a shorter lease of 15 to 45 years, as long as the lease can cover them and their spouse up to at least age 95. For example, a couple aged 60 have to buy a flat with a lease of at least 35 years. If they prefer a longer lease, they could have a lease of 45 years, to last them till age 105. Providing this option to seniors upfront mitigates the need for subsequent lease top-ups.
Seniors who own SAs, which were sold on fixed leases of 30 years, can apply to top up their lease by five, 10 or 15 years at prevailing market value, at any point in time.
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