HDB Leasehold - still a myth to public

The Straits Times published a reply by HDB to a letter by a Mr Wong on the much talkabout but little known topic of the 99-year lease. This appears on the printed edition of the Forum page:

May 7, 2010
HDB clears the air on lease expiry

I REFER to Mr Wong Pang Yee's letter, 'Allay uncertainty over HDB leasehold' (April 13).

HDB flats are 99-year leasehold properties. Like all leasehold properties, the land will revert to the Government when the lease on the land expires. The overwhelming majority of HDB flats today are far from expiry of their leases.

However, some flats in older estates may be selected for redevelopment under the Selective En Bloc Redevelopment Scheme, if it is economically viable. To maintain the value of older flats, the Government has also introduced various upgrading programmes such as the Home Improvement Programme and Lift Upgrading Programme.

Chan-Wong Jee Choo Lily (Mrs)
Deputy Director, Policy and Property
Housing & Development Board

Contrary to what the header insinuated, the reply is far far from clearing the air, at least it has not given us a clear enough picture what is to happen upon expiry of the lease. Let us not forget, about 80% of the population will be affected when the time for the lease to expire come.

"The overwhelming majority of HDB flats today are far from expiry of their leases" - Mrs Chan-Wong Jee Choo, Lily

This is an outright irresponsible statement to make! The Deputy Director attempt to shove this problem outside her tenure with HDB, hoping that someone else after her will reveal the truth to the public; one can imagine the truth will be extremely uncomfortable.

After all these years of existence, HDB should have evolved into a more professional body serving the general public. The procedure must be clearly made known to the public at large, and not let every stake holder of the lease to second guess what is to come next.

The leasehold period will not be extended with upgrading programs which is an instrument used to maintain the value of older flats. But no matter how valueable the flat is, it will become worthless when the time come for the land to revert to the Government.

So, unless and until the Deputy Director give a crystal clear reply, the uncertainty over the HDB leasehold will continue to cloud over HDB flats-owning public.