9,700 elderly households have sold part of flat’s remaining lease to HDB since 2009

2-room Flexi Scheme

HDB also provided an update on its 2-room Flexi Scheme, which gives seniors the option of monetising their existing property and “right-sizing” to a 2-room Flexi flat.

Since its introduction in November 2015, HDB has offered about 46,500 2-room Flexi flats.

The booking exercises for nearly 33,200 units (or about 71 per cent) have been completed, while the selection exercises for the remaining units are ongoing.

Of the 2-room Flexi flats booked as of December 2022, 58 per cent were booked by seniors aged 55 and above. The rest were booked by non-elderly singles (35 per cent) and families (7 per cent).

Among the seniors, nine in 10 opted for short-lease 2-room Flexi flats, while the remaining opted for 99-year lease flats.

About 44 per cent of them opted for 45-year and 40-year leases, while another 44 per cent opted for 35-year and 30-year leases. 

The remaining elderly flat buyers opted for shorter leases of 15 to 25 years, with just over 1 per cent opting for the shortest lease of 15 years. 

“As the prices of 2-room Flexi flats take into account the lease length, flat buyers will pay less for a shorter lease flat than one with a longer lease,” said HDB. 

“In 2021 and 2022, about 82 per cent of the 6,728 units of 2-room Flexi short-lease flats offered in non-mature estates were priced below S$100,000 for a lease length of 45 years.

“HDB will continue to launch Build-to-Order (BTO) projects with 2-room Flexi flats island-wide to provide seniors with more housing choices.”

As of the end of last year, more than 1,500 households have also benefitted from the Silver Housing Bonus, said HDB. 

Introduced 10 years ago, it aims to help seniors supplement their retirement income when they “right-size” to a 3-room or smaller flat.

In 2020, it was enhanced and simplified, such that seniors will enjoy the maximum bonus of S$30,000 (up from S$20,000 previously) as long as they “right-size” to a 3-room or smaller flat, top up S$60,000 of their proceeds (without the need for a further top-up) into their CPF retirement account and join CPF LIFE.