HDB “Asset Enhancement” is a lie, it is just 2% yearly inflation for your homes


Comments by Oogle

When you buy a HDB flat, you are actually buying a 99 year lease from HDB. There is no strata title to your HDB flat unlike private and the land that your HDB flat sits on belong to the government, unlike private which has a redevelopment potential if a developer buys over your private flat and you will get a windfall. Everything about your HDB flat is controlled by HDB, getting a tenant for rental for your whole flat need to be approved by HDB, even renting your rooms out the occupier needs to be approved by HDB. There is a minimum occupation of 5 years before you can sell your BTO flat and what you derived is actually the market demand of property 5 years later while offsetting a yearly 2% inflation, so it seems like “Asset Enhancement” on the windfall you get. No, what market price you get is based on the property market and the dynamics of demand and supply. But after that the balance of lease sets in and your HDB flat will depreciate in value based on the balance of years of lease left.

Author: Gilbert Tan TS

IT expert with more than 20 years experience in Apple, Andriod and Windows PC. Interests include hardware and software, Internet and multimedia. An experienced Real Estate agent, Insurance agent, and a Futures trader.

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