The rise of the public flat as an asset

[opmi]

SERS n upgrading

Since the government has boldly declared HDB to be a nest egg, I will be very interested to find out how they intend to deal with the older flats.

The oldest flats right now have remaining lease of 60-70 years. Going forward the depreciation is expected to accelerate. For the resale buyer who cleans out his CPF, I think that not only will he not get a satisfactory return on his money, he is likely to lose a significant amount too. Retirement will be very tough.

Govt already has in place policy to ensure people dont outlive their property tenure for CPF mortgage payment. Especially the younger one. See calculator below.

http://www.cpf.gov.sg/cpf_info/Calculato...P_Calc.asp

In a few years time, older L99 condos will see lesser buyers using CPF due to this limit.

Hi opmi,

Thanks for providing the calculator. I didn't know this existed. However, this still does not address the problem of depreciation due to the lease. I don't see how older flats can continue to be a store of value (or even grow).

the limit is to minimize the damage. L99 lease not going to change. Govt cannot sell Freehold land. Heard that it is in the Constitution. But too lazy to verify.