Friday, May 18, 2018

Extension of lease for old HDB flats

The minister for national development raised two issues concerning the extension of lease for HDB flats:

a) Some flats are in poor condition and the repairs are costly
b) There is insufficient land for redevelopment.

I find both issues to be overstated.

While repairs may be costly, the owner will be able to decide if they wish to meet this cost or to give up the flat. It will be even more costly to buy a new flat.

There will be sufficient land to house the existing population together with natural increase.

The land may be insufficent to house a large influx of immigrants, but it is a separate matter.

I suggest that the government takes this approach: Offer extention of lease for 5 to 10 years provided that the old HDB flats are still in habitable condition and there is no plan for redevelopment.

The prospect of extension of lease will help to preserve some value in the HDB flat and also lessen the trauma faced by the existing tenant to look for a new accommodation at a unknown high cost.

Tan Kin Lian

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