Investing in old flats

The government is probably worried that they will end up holding too many HDB flats that they had bought under the lease buyback scheme.

They should not be afraid of this outcome.

There is nothing wrong with the government owning assets. Just look at the trillions that are owned by the government in government buildings and land.

What is the problem of adding a few more billions under HDB for the lease buyback scheme?

What happens when the lessees eventually die and the flats revert to HDB?

These flats can be rented out to young people who are waiting for the new HDB flat. It will help to get young people to marry younger and start a family.

If the HDB does not want to manage the rental of these flats, they can appoint an operating company to manage it. This follows the model adopted by the Land Transport Authority.

The government can also buy the old flats outright, i.e. not under the lease buyback scheme. They can make these flats available for rental to young people and also to old people.

We need to create a more active market and ensure that the HDB flats are put to better use. We need to create a health supply and demand for the old flats.

The government needs to rethink and change its operating model and keep up with the times.

Tan Kin Lian