How the 99-Year Lease Policy Affects HDB Flat Values

  • 2 minute read

In Singapore, most Housing and Development Board (HDB) flats are sold on a 99-year lease. While this policy has provided affordable housing for decades, it also carries long-term implications for property values—especially as more flats approach the tail end of their lease. Whether you’re a first-time buyer, investor, or planning to sell, understanding how lease decay impacts HDB flat values is essential.

What Happens as the Lease Gets Shorter?

When a flat is newly built or still in the early years of its lease, its value typically rises along with market demand. However, once an HDB flat passes the 40-year mark, questions about depreciation begin to surface. Banks may restrict loan amounts, CPF usage becomes limited, and resale demand can weaken.

  • Below 60 years remaining: CPF usage becomes pro-rated; buyers need to meet certain conditions.
  • Below 30 years remaining: CPF cannot be used at all; bank loans are heavily restricted.
  • Approaching 20 years or less: Resale value declines significantly; limited buyer pool.

Why the Lease Length Matters to Buyers

For many Singaporeans, property isn’t just a home—it’s also their biggest financial asset. A longer lease ensures better loan eligibility, CPF usage, and capital appreciation over time. With older flats, buyers often weigh affordability against future resale value and eligibility restrictions. The length of the remaining lease is more than just a number—it has a significant impact on affordability, financing, and long-term value.

Younger Buyers’ Concerns:
  • Can I sell it in 10-15 years without losing value?
  • Will I still be able to use CPF to finance it?
  • Will I have trouble getting a buyer or bank loan?

So are older flats still worth buying?

There’s no simple yes or no. It depends on your priorities, plans and financial situation. Flats with less than 60 years of lease remaining tend to be more affordable, making them attractive to retirees, couples with no plans to move again, or those looking for a spacious home at a lower price point.

However, prospective buyers must carefully assess:

  • Remaining lease vs. their age (important for CPF rules)
  • Potential for Selective En Bloc Redevelopment Scheme (SERS)—though this is rare and not guaranteed
  • Long-term exit strategy—Can it be sold easily in 10 years?

Navigating the Decision

Whether you’re buying a resale flat or planning to sell one, consider the remaining lease length carefully. Ask yourself these 3 questions:

  • Will this flat hold its value when I want to sell it?
  • How will loan and CPF rules affect my financing?
  • Is the price low enough to justify potential future limitations?

Need Help Comparing Flats?

Not sure whether to go for a resale or a newer BTO? Wondering how lease decay could affect your investment? Speak to our property consultants for a no-obligation appointment. We’ll help you evaluate your options clearly and make an informed choice.