First batch of Tengah flats in Nov 2018

May 13, 2018

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HDB has always challenged itself to do better and break new frontiers, in imagining and planning each HDB town and estate.

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Take for instance Marine Parade, which was made possible only through our land reclamation efforts. Over time, it has become a cherished home for many Singaporeans.

It will be no different for Tengah, our first new town in over 20 years. In November this year, we will be launching our first flats in Tengah. It will be a substantial offering of around 1,500 flats, with a good mix across different flat-types.

Over the next few years, we will continue to have a steady stream of Tengah flats. When completed, Tengah Town will grow to about 700 hectares, roughly equivalent to Bishan in size.

2pixin1In planning for Tengah, we wanted a town that is unique, like no other HDB town in Singapore. We have conceptualised it as our first “Forest Town”, and a green theme permeates the entire town.

Tengah will be integrated with the surrounding greenery and rich biodiversity, and feature a car-free town centre. It will be a green, car-lite, and pedestrian-friendly town.

With the recent announcement of the 24-km Jurong Region Line (JRL), residents in Tengah can also look forward to excellent connectivity, with four JRL stations connecting the town to Jurong Innovation District, Jurong Lake District and beyond. Within Tengah, we are also looking to enhance last-mile connectivity through autonomous vehicles.

We look forward to working with Singaporeans to make Tengah a home treasured by generations to come, a place where precious memories and community bonds are formed.

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Choosing a Home for Life

March 24, 2017

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I read a recent Lianhe Zaobao article (15 Mar) which highlighted the high prices of several short-lease HDB flats in the resale market.

While resale flats are transacted on a willing buyer-willing seller basis, I was concerned by the suggestion that some buyers are forking out high prices for older flats, in anticipation of the benefits of the Selective En bloc Redevelopment Scheme, or SERS.

But SERS, as the name implies, is on a selective basis.

It is only offered to HDB blocks located in sites with high redevelopment potential. These are typically sites where the land has not been well utilised. It is also subject to the availability of suitable replacement sites for residents and the Government’s financial resources.

This is why only 4% of HDB flats have been identified for SERS since it was launched in 1995.

We will continue to maintain this strict selection criteria.

So please do not assume that all old HDB flats will be automatically eligible for SERS.

In fact for the vast majority of HDB flats, the leases will eventually run out, and the flats will be returned to HDB, who will in turn have to surrender the land to the State.

As the leases run down, especially towards the tail-end, the flat prices will come down correspondingly.

So buyers need to do their due diligence and be realistic when buying flats with short leases. This is especially important for young couples, who have to plan for a much longer future.

Hence, when we enhanced the CPF Housing Grant at the recent Budget, I had advised first-time home-buyers to choose a resale flat with a sufficiently long lease to cover their needs.

How long should the lease be?

Our average life expectancy today is close to 85 years.

One possible guide is to buy a flat that covers you and your spouse to age 95. This would cover most of us for life and give us peace of mind in our golden years.

So a 30-year-old couple could consider resale units with leases that are 65 years or longer. And there are many such options in the resale market today.

With a longer lease, you can benefit from the appreciation in property value in the medium-term, especially after factoring in the Government’s housing grants and subsidies.

Later, when your life circumstances change, such as when your children have grown up and moved into their own homes, you have the option of unlocking the value of your flat by right-sizing to a smaller flat. You can then consider a new 2-room Flexi flat (with leases varying from 15 to 45 years) or a flat in the resale market.

Besides seniors, there may also be other buyers who are interested in cheaper, shorter-lease resale flats. This could include those who are going through a transition in their lives, and are not ready to commit to a longer lease just yet.

Over time, we can expect a more diverse HDB resale market, with flats of varying leases to cater to the different life-cycle needs of Singaporeans.

So I encourage potential homebuyers to sit down with your loved ones, work out your budget and needs, and choose a home wisely.

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