Singapore’s public housing market has long operated on an assumption that newer flats offer better investment returns. A growing number of buyers are now questioning this belief, choosing older resale units despite risks like depreciating leases and tighter financing rules.
Most experts caution that HDB flats lose value after 40 years, when Central Provident Fund usage and HDB loan limits become stricter. Some economists argue the idea of appreciation is flawed. Donald Low, a local economist, wrote in a 2022 Facebook post that flats with 99-year leases should not rise in value, since their worth must decline as the lease expires. He explained that if buyers know flats with fewer than 60 years left will lose value, the decline logically begins earlier—at 61 years, then 62, and so on.
The government has confirmed this reality. In 2017, National Development Minister Lawrence Wong stated that not all HDB flats would qualify for the Selective En bloc Redevelopment Scheme, which compensates owners when blocks are redeveloped. Only 4% of flats have been included in Sers since its 1995 launch, ending expectations that aging units would automatically be upgraded or replaced.
Related: The 9 Best Solar-Powered Fans to Keep you Cool This Summer
Three Singaporeans who recently bought resale flats shared why they ignored conventional advice.
One buyer, who asked to remain anonymous, said she did not treat her flat as an investment. “I bought it below the estimated market rate, so I think I got a fair price,” she said. Her priorities were location—close to her childhood home and family—and the estate’s established amenities, such as hawker centers and bus routes. “I plan to live here long-term,” she added. “Many flats in the area are the same age or older, so the government will need to address resettlement if Sers isn’t offered.”
A second buyer exceeded HDB’s income ceiling for Build-to-Order flats and turned to the resale market. “I prefer mature estates—they have better layouts and more facilities,” he said. Though he will complete his five-year Minimum Occupation Period later this year, he has not decided whether to sell. “I might test the market to see if it’s worth it. I spent a lot on renovations, and the place still looks good.” Even without Sers, he believes HDB should maintain the estate. “If conditions worsen, they should redevelop it.”
Related: Bellacor Debuts Revamped Digital Experience
A couple selected a resale flat for its size and shorter wait time compared to BTOs. “We needed space for a growing family,” one explained. “We also wanted to choose the location—right between both sets of parents—and check the neighbors based on the block’s condition.” While the flat’s age concerned them, they chose a unit, expecting it to hold value.
The government’s plans for aging flats remain uncertain. With 80% of Singaporeans living in HDB housing, policymakers must address depreciating leases. For now, buyers like these are prioritizing homes that suit their needs, not just their financial plans. Some may later consider options for older residents if their circumstances change.
