Tag Archives: Lease Buyback Scheme

The promoting of the Lease Buyback Scheme (LBS) by National Development Board on social media has drawn intense backlash from Singaporeans from all walks of life. Minister Lawrence Wong also earlier said that all HDB flats would be returned to the government once their 99 year lease has run out, with no compensation paid to "home-owners".

In yet another move to tweak the unpopular lease buyback scheme, the HDB announced today that new enhancements would be made to the Lease Buyback Scheme with effect 1st April 2015. The enhancements include allowing 4 room HDB flats to be included in the scheme, raising the income ceiling from $3,000 to $10,000 per month, lowering the CPF top-up requirement for households with 2 or more owners and giving more flexibility in the length of lease to be retained.

It is good that the Lease Buyback Scheme (LBS) has been extended to 4-room flats. The LBS has not seen a very good take up rate so far, in large part because it was restricted to only 3-room or smaller flats. But as I had stated in my 2012 Budget debate speech, I would prefer for LBS to be extended to all flat sizes. This will help more elderly folks monetise their flats without having to sell and move out of their flats, which many of them attach a lot of sentimental value to.