HDB flats are on 99-year leases. See how remaining lease affects your flat's value, financing options, and CPF usage over time.
Check NowEnter your flat's lease details to see how time erodes value, financing, and CPF eligibility.
All HDB flats in Singapore are sold on 99-year leases from the Singapore government. When the lease expires, the land and flat revert to the state. Unlike freehold property, an HDB flat is a depreciating asset — its value is intrinsically tied to the remaining lease.
Lease decay is not linear. Flats with more than 70 years remaining tend to hold their value well because buyers face no financing or CPF restrictions. The decline accelerates once the remaining lease drops below 60 years, as banks restrict loan tenures and CPF usage becomes limited. Below 40 years, the buyer pool shrinks dramatically — most buyers cannot get a mortgage, and CPF cannot be used. This creates a compounding effect: fewer eligible buyers means lower demand, which drives prices down further.
To use CPF for an HDB purchase, the remaining lease must cover the youngest buyer until at least age 95. For example, a 35-year-old buyer needs at least 60 years remaining on the lease. If the remaining lease is shorter, CPF usage is pro-rated. Below 20 years remaining, CPF cannot be used at all.
The Selective En Bloc Redevelopment Scheme (SERS) is a government programme where HDB acquires older flats for redevelopment. Selected residents receive compensation and priority to purchase new replacement flats nearby. However, only about 4% of HDB flats have been selected for SERS since the programme started in 1995 — so it should not be relied upon as an exit strategy.
When the 99-year lease expires, the flat reverts to HDB and the land returns to the state. Owners receive no compensation. The flat essentially becomes worthless as the lease approaches zero. This is why planning your exit well before the lease runs down is critical — waiting too long means selling into a market with almost no buyers.