SINGAPORE: A remarkable trend is sweeping across Singapore, as a staggering 90% of senior homebuyers are opting for short-leased two-room flexi flats.

This buzz was sparked by the Housing and Development Board (HDB) earlier this month, signaling a shift in the housing market for seniors.

Flexibility of the Two-Room Flexi Scheme

Since its inception in 2015, the two-room flexi scheme has aimed to provide flexible living solutions for elderly citizens aged 55 and above.

Buyers can select either a traditional 99-year lease or shorter leases ranging from 15 to 45 years.

This flexibility allows seniors to tailor their housing choices to suit their lifestyle preferences and financial situations.

Statistics and Trends

Recent statistics from The Business Times further highlight this trend: a whopping 92% of seniors, or 20,185 out of 21,901, chose shorter leases.

Of these, the 40-year lease emerged as the front-runner, capturing 27.3% of the choices, while the 35-year and 30-year leases accounted for 24.4% and 16.4%, respectively.

Interestingly, only a small fraction—298 buyers—opted for the minimum 15-year lease.

Affordability and Accessibility

Affordability is a major draw; nearly all of the two-room flexi flats with short leases are priced under S$200,000.

In fact, many are even available for under S$100,000, particularly in non-mature estates—making these options incredibly accessible for seniors looking for budget-friendly housing solutions.

Availability and Senior Buyers

Since the program launched, HDB has made approximately 53,900 two-room flexi flats available, with an impressive 71% (38,378 units) already claimed.

So far, keys to 22,822 of these homes have been issued.

What's noteworthy is that more than half (57%) of these sold units were picked up by seniors, while the remaining units were snagged by singles and families.

Future Plans and Market Trends

Looking ahead, HDB plans to roll out additional two-room flexi flats in the upcoming Build-To-Order (BTO) sales exercise scheduled for October 2024.

New flats will be built in prime areas such as Ang Mo Kio, Bedok, Bukit Batok, Jurong West, Kallang/Whampoa, Pasir Ris, and Sengkang.

With these dynamic changes in the housing landscape, the rise of flexi flats may also hint at broader trends in Singapore's real estate market.

As interest rates fluctuate and new projects come online, could this signify a resurgence in home buying across all demographics? Stay tuned to find out!