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Spurred by a news report about the Government taking back 191 private terrace homes in Geylang after their 60-year leases run out in 2020,
A Straits Times’ reader Larry Leong wrote a letter to its forum page on June 24, 2017. He called for greater clarity on the issues regarding leasehold properties as – while he was applying to lease out his HDB flat – the Housing Board referred to him as “tenant”, and his potential tenant as a “sub-tenant”. He thus questioned: Are HDB dwellers tenants or real homeowners for 99 years?
HDB Owners have ownership proof
A HDB spokesman replied: “Flat owners enjoy rights to exclusive possession of the flat during the tenure of the flat lease. They can sell, let out, and renovate their flats, within the guidelines specified in the Lease and Housing and Development Act.”
In addition, each HDB flat owner’s name is recorded in the title deed, with the original kept with the Singapore Land Authority, as part of the central and comprehensive record for all properties in Singapore. This confirms that the buyer is indeed an owner, says the HDB, clarifying that the letter writer had misused the term “tenant”. On its website, home purchasers are “flat owners”; “tenants” refer to those who rent public rental flats from the HDB.
Back then in 2017, this explanation did not go down well with many online citizens, who were already feeling jittery about then-Minister for National Development Lawrence Wong’s warning against shelling out big money for very old flats in hope of striking the Selective En bloc Redevelopment Scheme (SERS) lottery.
The Tanglin Halt flats, located in Commonwealth Drive and Tanglin Halt Road, will eventually be demolished to make way for redevelopment.
Only 4% of HDB flats selected for SERS
To date, only 4 per cent have been identified for SERS to HDB blocks located in sites with high redevelopment potential. Most flats will be returned to HDB when the leases run out, and the land eventually to the State.
The accumulated “bad news” led many critics to complain that despite paying hundreds of thousands of dollars (or even a cool million) for their HDB flat, it doesn’t actually belong to them.
Some rationalised that this is the norm for any type of leasehold housing, be it public housing or private condominiums on 99-year leases. Others vented their anger at the Government.