12,656 households have opted for HDB lease buyback scheme since 2009

SINGAPORE: A total of 12,656 households have sold part of their flat's remaining lease back to the Housing and Development Board (HDB) as of Jun 30, with nine in 10 receiving between S$100,000 (US$75,500) and S$300,000.

Slightly over half of those who took up the Lease Buyback Scheme (LBS) live in 3-room or smaller flats, HDB said in an update on Tuesday (Aug 13).

The scheme was first introduced in 2009 to help seniors monetise their flats for their retirement needs. 

Under it, seniors living in all flat types can sell part of the flat’s lease back to HDB and choose to retain lease lengths from 15 to 35 years, based on their age and needs.

The proceeds will be used to top up their Central Provident Fund (CPF) retirement account and buy a CPF LIFE plan, which will provide them with a monthly income for life. Any balance proceeds after the top-up will be returned to them in cash.

The yearly take-up rate has remained steady at around 1,680 households in the past five years, said HDB.

Around 53 per cent of the 12,656 households who took up the scheme live in 3-room or smaller flats, while about one-third or 33 per cent live in 4-room flats. The remaining 14 per cent live in 5-room and bigger flats.

About 65 per cent of the households chose to retain lease lengths of 35 years and 30 years. Another 30 per cent opted for 25 years and 20 years. The remaining households retained a 15-year lease.

Around 90 per cent received between S$100,000 and S$300,000 through the scheme.

Seniors who top up their CPF Retirement Account (RA) with the proceeds can also receive a bonus - ranging from S$7,500 to S$30,000, depending on their flat type and how much they top up.

Those who top up S$60,000 or more from their net proceeds will receive the full bonus. As of Jun 30, 93 per cent (11,715 households) received the full bonus.

"As a result of topping up to their CPF RA, households where all owners are enrolled to the CPF LIFE plan received a median monthly payout of about S$1,000," said HDB.

RENTING OUT

Seniors who wish to supplement their retirement income can also opt to rent out their whole flat or spare bedrooms, said HDB. 

"From January to June 2024, there were 10,301 applications to rent out whole flats and 21,219 applications to rent out bedrooms made by elderly households," it added.

They can also opt for the Silver Housing Bonus scheme, which was introduced in 2013 and aims to help seniors supplement their retirement income when they “right-size” to a 3-room or smaller flat.

HDB said it will continue to review the housing needs of seniors to ensure that housing policies remain relevant and responsive to their changing needs and preferences.