SINGAPORE: About nine in 10 elderly who bought two-room flats under the Flexi Scheme have opted for shorter leases of 15 to 45 years, said the Housing and Development Board (HDB) on Sunday (Feb 25).
First introduced in 2015, the scheme offers families (first- and second-timers) and singles (first-timers) 99-year leases, while buyers aged 55 and above can choose a shorter lease.
Since the scheme began, 10,230 two-room flexi flats have been booked, of which 54 per cent were secured by elderly buyers.
Flats with shorter leases are much cheaper than those with 99-year leases, which experts say encourages some elderly to sell their larger flats and "right size" to a smaller unit.
“It’s a way for the elderly to monetise their real estate assets, in order for them to keep a sizeable nest egg for their retirement,” said ZACD Group executive director Nicholas Mak.
PropNex CEO Ismail Gafoor said that the scheme will remain popular as it provides a housing option that caters to various groups.
AdvertisementAdvertisement"There is still a stronger demand from singles. I think it is something that will be continuously be in demand particularly knowing that our ageing population is also increasing,” he said.
HDB said that it will continue to launch Build-to-Order (BTO) projects with two-room flexi flats islandwide to provide a wide choice of locations.
In the upcoming May sales exercise, home buyers can look forward to such flats on offer in Sengkang and Yishun.
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