The Situation
Nearly 300 HDB blocks built in the 1960s are reaching the last 30 years of their 99-year leases. These flats, located in mature estates like Bukit Merah, Geylang, Queenstown, and Toa Payoh, face unique challenges in the resale market as their leases shorten.
While the Voluntary Early Redevelopment Scheme (Vers) is in the works, not every precinct will be eligible, and not every homeowner may vote in favour. For those flats left out of Vers, owners could face difficulty finding buyers, particularly given financing restrictions and younger buyers’ preference for newer units.
📊 Infographic: Key Considerations for Ageing HDB Flats
- 🏘️ 300 blocks affected: Built in the 1960s, lease now entering final 30 years.
- 🗳️ Vers scheme: Owners of selected 70-year-old flats can vote on government buyback.
- ⚖️ Compensation: Vers less generous than SERS; some owners may decline due to ageing-in-place preferences.
- 💰 Resale hurdles:
- Buyers face financing challenges for flats with <30 years lease.
- Younger families prefer newer flats with higher resale potential.
- Seniors may opt for 2-room Flexi flats or community care apartments.
- 🏠 Rental demand exists: Median monthly rent (2Q 2025):
- Bukit Merah – $3,900
- Geylang – $3,600
- Queenstown – $4,000
- Toa Payoh – $3,600
- 🏦 Possible solution: HDB buyback on case-by-case basis, similar to EIP quota buybacks.
Commentary
From a real estate perspective, the conversation about HDB stepping in as a “buyer of last resort” is significant.
Currently, HDB already buys back flats under the Ethnic Integration Policy (EIP) when owners are unable to sell. Extending a similar approach to flats excluded from Vers could give elderly owners and families much-needed peace of mind, especially when life events — like inheritance or downsizing — drive the need to sell.
Beyond individual cases, there is also discussion about bundling repurchased flats into securitised instruments that can generate rental income. Given the strong rental demand in mature estates, such a scheme could meet housing needs while offering safe income streams for an ageing investor base.
✅ Summary Highlights
- ✅ Nearly 300 HDB blocks from the 1960s are entering their final lease years.
- ✅ Vers will help, but not all flats will qualify or be accepted.
- ✅ Old flats face resale difficulties due to financing and buyer preference challenges.
- ✅ HDB could play a role as buyer of last resort, similar to EIP cases.
- ✅ Rental demand remains strong in mature estates, keeping older flats valuable for income.
- ✅ Innovative solutions like securitised rental-backed instruments may provide long-term opportunities.
📞 If you’re concerned about your ageing HDB flat or exploring your next housing move, let’s discuss your options. From leasehold considerations to right-sizing strategies, we’ll guide you every step of the way.