“We warned about HDB flats dropping to zero value 20 years ago” – SDP blasts Govt

The Singapore Democratic Party (SDP) has blasted the Government for allegedly misleading Singaporeans about the value of their HDB flats in a new video.

In the video, SDP secretary-general Chee Soon Juan points out that his party has warned that the value of HDB flats would plummet over time despite the Government’s asset appreciation promises, over two decades afo.

The opposition party’s video comes after we reported yesterday that Prime Minister Lee Hsien Loong asserted that “it’s fair!” that HDB flats will plummet to zero value, at a recent closed-door post-National Day Rally dialogue.

During the Q&A segment of the talk, the head of Government was asked for his comments on the fact that the people are “upset that HDB flats have zero value at the end of the 99-year lease – meaning that the CPF used to pay off the flat also disappears and they have little left for retirement.”

In a meandering response, PM Lee indicated that it would be “unfair” for the Government to pay for flats that have reached the 99-year lease since the homeowner has had use of the flat for that many years:

“You have got 99 years of use out of it while the Government gets back the land, recycle and can redevelop for somebody else. I think that is fair.

“I think that is the fundamental point which we have to understand, because if we made it forever – or if we said at the end of 99 years, you give me back the house, I give you back your dollars – well, then what about the years when you have been living in the house? You must pay rent right? Which I don’t think is the deal.”

Read his full response, that has drawn widespread flak, here.

PM Lee did not appear to consider how much value a HDB resale flat would have for homeowners. Neither did he give an answer to Thiru’s point about how “the CPF used to pay off the flat also disappears and they have little left for retirement”.

Statistician and president of human rights NGO Maruah, Leong Sze Hian, asked: “Based on what PM Lee has said, isn’t this arguably yet another confirmation that your HDB flat may decline to zero value?”

A day after The Independent reported on PM Lee’s comments, the SDP published a video asking if Singaporeans will fall for the Government’s promises that the value of public housing will appreciate again.

Watch the video here: