An HDB Flat for Your Different Life Cycle Needs

  • Would the Lease of a Flat be a Consideration for Resale Buyers and Sellers?

     

    There are many different factors to consider when buying or selling a resale HDB flat. The number of years left on the lease of an HDB resale flat is always an important consideration for those looking to buy or sell a resale flat.

     

    What is the Length of Lease for an HDB Flat?

    HDB flats are sold on 99-year leases and flat buyers are informed at the time of purchase. The 99-year lease serves the needs of the owners and their children, while ensuring that land can be recycled to house future generations.

    Like all leasehold properties in Singapore, the flats will revert to HDB, the landowner, upon expiry of their leases. HDB will in turn surrender the land to the State.

    Resale Buyers: Meeting Long-term Needs

    Home buyers need to consider their budget and long-term needs, and make prudent housing choices. They should factor in the remaining lease of the flat to ensure that their flat can be a home that can last them for life. The flat can alsobe a good store of value which can be monetised for future retirement needs, if needed.

    If you intend to buy a flat, use the HDB Map Services and Resale Flat Prices e-Service to find out the remaining length of lease of flats in different blocks. The e-Service displays the prices of transacted flats and their attributes, such as location, floor area, and floor level. Buyers and sellers can get a realistic sense of the transacted prices in the market and make an informed choice before they commit to the sale or purchase of a flat.

    Also note that there are restrictions on HDB housing loans and the use of CPF monies, depending on your age and the balance lease of the flat.

    Resale Sellers: Planning Your Next Home

    If you are looking to sell your flat, be sure to plan your finances carefully and consider what you will need for your next home. Factors to consider include:

    • Housing options – Should I buy another flat from HDB or consider other options such as a resale flat or private property?
    • Finances – Do I have sufficient savings and am I eligible to take up a housing loan from HDB or a bank for my next home?
    • Lease duration – Will the lease of my next home cover my long-term needs?
    • Waiting time – Will my new home be ready in time for me to move in after I have sold my current flat?

     

    Such planning should be done before the sale of your current flat. 

    Negotiating the Resale Price in the Open Market

    The price of resale flats is negotiated between the flat seller(s) and flat buyer(s). While flat owners may have expectations of how much their flat can sell for, prospective buyers would naturally consider the attributes of the flat and the prevailing market sentiments. These attributes include the location, floor level, physical condition of the flat, amenities available, remaining lease, etc. Flat buyers also need to bear in mind their lifestyle needs and financial standing, before committing to a purchase.

    For more information, you can  look at the Quarterly median resale prices across HDB towns by flat type for past transactions.