As the lease of Housing and Development Board (HDB) gradually shortens, there were concerns among some HDB flat owners about the value of their flats depreciating in the future.
There are several factors that could affect the values of any real estate, such as economic growth, market sentiments, population size, job market, location, design and the age of the property.
Two of the main intrinsic characteristics of a property that affect its value are its usability and tenure. Usability is defined as the usefulness and relevance of a real estate to the user. The tenure is the length of time which the property owner is able to derive economic benefit from the real estate.
In Prime Minister Lee’s National Day Rally (NDR) speech on 19 August 2018, he announced two initiatives that address the concerns of HDB flat owners in regards to the values of their aging flats.
Firstly, the Home Improvement Programme (HIP) II was introduced to address the concerns of maintaining and keeping the aging HDB flats relevant and livable. The second initiative is the Voluntary Early Redevelopment Scheme (VERS), that addresses the worry over the declining lease of HDB flats.
ZACD Executive Director, Nicholas Mak shared his opinion on the two above-mentioned initiatives.
Click here to listen to his radio interview with Money FM 89.3 broadcasted on 20 August 2018.
Alternatively, read his commentaries here as published in The Straits Times, Top of The News Section, Pages A8 and A9, 20 August 2018, and here as published in Lianhe Zaobao, Front Page, 21 August 2018.
An online version is published on TODAYonline, 20 August 2018. Click here to read.
Another online version is published on South China Morning Post, 21 August 2018. Click here to read.