Low take-up rate for Lease Buyback Scheme

The Lease Buyback Scheme (LBS) was launched in March last year to help the elderly with smaller flats unlock their housing equity by selling their flats to the government for cash.

But HDB has only received 552 applications for the scheme so far. A number that got Member of Parliament for Tanjong Pagar GRC Baey Yam Keng questioning the reason behind the low take-up rate.

Mohamad Maliki Osman, Parliamentary Secretary for National Development, said that out of the 552 applications, over 40 percent or 229 have been approved; 30 percent or 166 cases are being processed; and the remaining 157 cases are either ineligible or have decided not to proceed.

Irene Ng, Member of Parliament for Tampines GRC asked whether the payout from LBS is enough for the elderly to monetize their elderly flats.

Dr. Maliki replied: "When you go into the scheme, the potential of not leaving behind the asset or the property to their children is very high and a lot of elderly people do see it as an important aspect of their legacy."

He added that some believed that the monthly payout for the flat was not worthwhile.

However, Dr. Maliki stressed that "we have emphasized to them it is not a main source of income for them. It's a supplemental source of income along with other sources of income that they could possibly have."