Introduction

SINGAPORE: In a significant trend, short-lease flats have emerged as the preferred choice for senior homebuyers in Singapore, with a staggering 90% opting for this option when purchasing two-room flexi flats, according to the latest announcement from the Housing and Development Board (HDB) on September 27.

Two-Room Flexi Scheme

Launched in 2015, the two-room flexi scheme caters specifically to buyers aged 55 and older, enabling them to select between a long 99-year lease or shorter leases ranging from 15 to 45 years. This initiative aligns with the diverse needs of seniors, allowing them to make choices that reflect their lifestyle preferences and financial considerations.

Short-Lease Popularity

Recent data reported by The Business Times indicates that out of 21,901 bookings for two-room flexi flats, an impressive 92% of seniors opted for shorter leases—translating to 20,185 buyers. Only 8% (1,716 buyers) selected the conventional 99-year option.

Lease Preferences

Among the various shorter lease choices, the 40-year lease emerged as the top favorite, embraced by 27.3% of senior purchasers. Close behind were the 35-year lease at 24.4% and the 30-year lease at 16.4%. Interestingly, the 15-year option was less popular, attracting just 298 buyers.

Affordability

Remarkably, almost all of these short-lease two-room flexi flats, including those with the extended tenure of 45 years, are priced below S$200,000. Many of these flats, particularly in non-mature estates, are available for less than S$100,000, making them an attractive option for seniors looking to downsize or settle into cozier accommodations.

Sales Statistics

Since the scheme's inception, the HDB has made approximately 53,900 two-room flexi flats available, with an impressive 71% (38,378 units) already booked. Keys have been issued for 22,822 of these units. Notably, seniors accounted for over half (57%) of the sold units, with the balance going to singles and families.

Future Developments

Looking ahead, the HDB plans to offer even more two-room flexi flats in the upcoming October 2024 Build-To-Order (BTO) sales exercise. New flats will be launching in several desirable areas including Ang Mo Kio, Bedok, Bukit Batok, Jurong West, Kallang/Whampoa, Pasir Ris, and Sengkang.

Conclusion

This surge in demand for two-room flexi flats indicates a crucial shift in the housing needs of Singapore’s aging population and highlights the importance of flexible housing solutions tailored to senior living. Will this trend reshape Singapore’s residential landscape? Stay tuned!