Extending the Lease Buyback Scheme for Lower-Income Senior Citizens

Mr Zaqy Mohamad asked the Minister for National Development if the Ministry will consider extending the Lease Buyback Scheme for lower-income senior citizens to include 4- and 5-room flats to help them in their retirement years as downgrading may not be viable due to the high cash-over-valuation of 3-room flats.

Mr Khaw Boon Wan: The Lease Buyback Scheme provides a useful option for elderly lessees of 3-room or smaller HDB flats to unlock the value of their flat.

Lessees of 4- or 5-room flats have wider options. They can sublet their flat or spare rooms, or move to a smaller flat or Studio Apartment.

Those who choose to buy a smaller flat should be able to fully pay for the flat, with net proceeds for their retirement needs. For example, a 5-room flat lessee in Jurong West can sell his flat for about $470,000 and buy a 3-room resale flat in the same town for about $310,000. This will leave him with about $160,000 for his retirement. Alternatively he can buy a Studio Apartment for about $110,000 in Jurong West, and get net proceeds of about $360,000.

Nevertheless, we will review the Lease Buyback Scheme and consider the Member's suggestion.

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