Ministry of National Dev Depleting value of HDB flats
The minister has announced that the current rules will be changed to allow CPF to be used to purchase the older HDB flats. 

This will help in some way to remove the sharp decline in value when the HDB flat reach 40 years. I made this suggestion a few months ago. I am glad that this change is being made.

However, it will not address the concern that the buyers are paying a high price for the HDB flat and the flat will have zero value at the end of the 99 year lease. The large sum paid towards the flat will be totally depleted.

Is it fair to the owners who paid a large sum to buy the HDB flats? No, it is not. 

Some people will say that the owner would have passed away and should not be concerned over this matter.

But what about the person who bought the resale flat at a high price? The subsequent owner will live to see the value of the HDB flat disappear totally into thin air, after paying a high price for the resale flat.

What can the govt do to reduce this loss? Is there any way to allow the HDB flats to preserve some value at the end of the 99 year lease?

Here are some actions that the govt can take:

a) The govt can allow the lease to be extended by 5 years at a small premium. This is possible if the flat is still in good condition.

b) The govt can allow the existing owner to rent the HDB flat at a modest rental.

If these options are in place, the value of the HDB flat will not become zero. It will still retain some value.

The govt should take this decision to ensure that the large sums paid by the HDB owners do not totally disappear.

Tan Kin Lian

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