Debated in Parliament on 13 May 2013.
Mr David Ong asked the Minister for National Development given the low take-up rate of the Lease Buyback Scheme (LBS) and the launch of the Silver Housing Bonus (SHB) on 1 February 2013 (a) what are the learning points on the responses from low-income elderly thus far; (b) what other refinements may be introduced to help improve the response rate; and (c) whether the recently introduced cooling measures, especially the increased stamp duty, have any impact on the response rate.
The Enhanced Lease Buyback Scheme (LBS) and the Silver Housing Bonus (SHB) were implemented on 1 February 2013. To date, we have received 265 applications for the Enhanced LBS, or an average of 88 applications per month. This is higher than an average of 18 applications per month before the enhancements. For SHB, we have received 15 applications and 170 requests for financial counselling. The numbers are lower, as SHB has just been implemented and the process of selling and buying of flats to right-size and qualify for SHB takes time. We will continue to reach out to elderly Singaporeans to raise awareness of the schemes.
The Enhanced LBS and SHB are part of a range of monetisation options for elderly Singaporeans who wish or need to unlock the value in their HDB flat asset to enhance retirement income. Elderly Singaporeans who have adequate finances or family support may not feel the need to take up the schemes. Nonetheless, as our population ages, we will look into more ways to help the elderly who wish to monetise their flats. This topic will be discussed as part of MND's "Our Singapore Conversation on Housing". We invite Singaporeans to join the discussions and suggest ways to further enhance the monetisation options.
The recent property cooling measures are intended to manage investment demand, rein in property purchase by non-citizens, and instil greater financial prudence. The measures should not have any impact on LBS and SHB response rates because only Singapore Citizen households who do not concurrently own a second property are eligible for the schemes.
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