Extensive public consultations are currently underway as to how studio apartments and 2-room flats can be combined into the new 2R Flexi scheme, but still retain their objectives, said National Development Minister Khaw Boon Wan.
Writing on his blog, Mr Khaw explained that singles and families will still be able to purchase a new 2-room flat from HDB on a 99-year lease, but elderly households aged 55 and above can choose a shorter lease period based on their age and preference under the unified scheme.
The lease options range from 15 to 45 years in 5-year increments, and will be granted provided the chosen lease allows applicants and their spouse to live in the flat till age 95 or above.
Prices of the 2R Flexi flats will take into account the lease tenure and whether they are bought by first-time or second-time buyers.
“Shorter lease flats will be cheaper than longer lease flats. Second-timer buyers will pay more than first-timers as the latter will get more subsidies. Through a combination of pro-rated grants for first-timers and pro-rated resale levy for second-timers, we will be able to price the 2R Flexi flats so that recent buyers of SA or 2R flats will find the 2R Flexi scheme to be fair. New buyers of 2R Flexi flats will also find the flats affordable,” wrote the Minister.
“We have worked hard over the past few months to get this balance right, for the new 2R Flexi scheme,” he added.
The government is expected to launch the unified scheme during the next Build-to-Order (BTO) exercise in September.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
