HDB flats: 35 is a dangerous age

In Banks, Financial competency, Financial planning, Political economy, Property on 13/04/2017 at 4:48 am

It’s all about financing.

Here’s a great graphic from ST on how the value of a HDB flat will fall over a cliff after the first 35 years. Extracted from



  1. I think you mean will fall off a cliff when *less than* 35 yrs lease left.

    From lease decay graphs of leasehold properties in various major cities around the world, the ST graph is actually on the optimistic side. It shows the price decline between 43-64 (age of flat) as being a simple straight line depreciation of 1% p.a.

    In reality, the pace of price decline starts to accelerate once the leasehold property gets older than 50 yrs. I.E. you’re looking at depreciation much greater than 1% p.a. even way before you hit the less than 35-yrs left mark.

    In S’pore this is further compounded by the fact that CPF restrictions actually start when properties have less than 60 yrs lease left. This is not mentioned in the ST article. This is why for most HDB older than 40 yrs, the selling prices are much lower than comparable 30 or even 35 yr old flats.

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