Singapore’s homeowners have 99 problems (and the lease is No 1)
As the oldest public housing flats near the halfway mark of their 99-year leases, owners grapple with the fear that what once seemed an astute investment now seems doomed to depreciation
Photographer Jeff Chouw, 41, lives in a public housing flat in Singapore that is as old as he is. But while that may sound quaint, the problem for Chouw is that with every passing year his lease is running out – along with the value of his property.
Singapore has long taken pride in its high home-ownership rates – of around 90 per cent – and its public housing scheme is so successful that flats can sell for more than S$1 million (US$720,000).
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But with the oldest flats nearing the halfway mark of their 99-year leases, many Singaporeans have been left fearing their investments will be for nothing when the homes return to the state.
In a country where 80 per cent of the population lives in public housing, such worries are hot-button issues with deep implications.
Units similar to the flat Chouw bought in 2015 for S$376,000 – a 700 sq ft unit upgraded with an additional utility room 11 years ago, when it turned 30 – now sell for between S$250,000 and S$308,000. If this depreciation continues, Chouw plans to “go to the ballot box and put in a vote for the other party”.
In a bid to address homeowners’ concerns, Singapore Prime Minister Lee Hsien Loong on Sunday used his National Day Rally address to announce three new housing measures. He said the government would upgrade more flats approaching their 30-year mark and upgrade flats again when they hit 60 – and it would also buy back some flats at the 70-year mark in a collective sale called the Voluntary Early Redevelopment Scheme (VERS).