Big questions remain as to what will happen to Singapore’s HDB leases that are expiring soon.
Relatively short leaseholds of 40, 60, 70, 75, 99 and 120 years are not uncommon for property titles in Asia and across Europe. The majority of owners would of course want to maintain a certain control and give the next generation the option to decide on how they would like to use the land.
In Singapore, any leases longer than 7 years are required to be registered under the Land Titles Act to be legally valid and enforceable – a common practice among many countries.
What is interesting and often the proverbial “elephant in the room” is the fact that the term of lease which many are comfortable with has a lot to do with the mindset of the general population which assumes that the lease will last as long as the average lifespan. Many people who buy leasehold properties think that as long as the lease can outlast them, that’s probably ok, forgetting that by the time they have lived out substantial years of the lease, there might not be enough balance years in the property to outlive the next buyer. Hence, leading to price depreciation.