Movement for change Give some value to a HDB flat when the lease has expired
I have a discussion with a friend about the HDB mess.

He said that the people who bought expensive HDB flats in the last 30 years paid too much and they will see their investment have no value at the end of the lease.

We agreed on this point. But we disagreed on the alternative approach.

I suggested that the government should allow the lease to be renewed for 10 years at a modest premium.

If this is adopted, the value of the flat will not become $0 at the end of the lease. It might retain a value of (say) 20% of the value for a new flat.

He liked the lease to be renewed for another 99 years.

I told him that the cost of a new 99 year lease is too expensive. It could cost (say) $200,000 for a 4 room flat, which is clearly unaffordable.

He did not listen to me. He wanted to stick to his view.

I told him - I am more knowledgeable about the cost of a 10 year and 99 year lease. Can you respect my expertise in this field? He finally listened.

This is a common problem. We agree that the PAP policy is not good for the people. But we have different ideas about how it can be solved. Instead of arguing for our point of view, we should be prepared to support and respect other people who is more familiar with the topic.

We should not stubbornly stick to a view which is not likely to be feasible.

Tan Kin Lian

Vote - do you agree with my view?

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