The issue of whether Housing & Development Board (HDB) flat buyers are true property owners or merely long-term lessees remains a point of contention.
Given the recent comments by Prime Minister Lawrence Wong and Minister for National Development Desmond Lee on improving housing affordability, perhaps it is also time to revisit the question of HDB flats ownership.
As highlighted by the relentless calls for transparency from citizen activist Phillip Ang, many critical questions about the nature of HDB homeownership remain unanswered.
Mr Ang has been voicing his concerns over the matter through detailed letters to government leaders, questioning the framework and legal definitions used by the HDB to classify flat buyers as owners when they are legally defined as lessees under their lease agreements.
Over several months last year, the individual wrote multiple emails to PM Wong, the HDB CEO, and other government officials.
The letters detailed concerns about how HDB flat buyers, who sign 99-year lease agreements, could simultaneously be considered property owners. These concerns were also sent to Members of Parliament and media outlets to amplify the issue.
His arguments point to contradictions in the government’s stance and align with broader concerns raised by academics and citizens over decades.
Mr Ang, highlighted the definition of “lessee” in the Longman Dictionary of Contemporary English: “Someone who is allowed to use a house, building, or land for a period of time in return for payment to the owner.”
He argued that this definition aligns with HDB flat buyers’ circumstances since they pay for the right to occupy a flat for 99 years, without acquiring full ownership rights.
According to Mr Ang, HDB retains control over key aspects of the property, such as enforcing restrictions on renting, resale, and en bloc redevelopment.
For example, HDB flat buyers must seek approval to rent out their units or sell them, terms that he says are more characteristic of a landlord-tenant relationship than true ownership.
Ang’s critique of HDB ownership
In his posts and emails to officials, Mr Ang argues that the HDB’s classification of flat buyers as owners is misleading, as buyers do not possess full ownership rights. He highlights that HDB flats are governed under lease agreements that explicitly refer to buyers as “lessees.”
In one of his posts, Mr Ang states:
“The terms used in various HDB documents and on its website have confirmed that buyers of HDB flats are merely lessees. Amending HDB webpages in no way changes the ‘lessee’ status of flat buyers.”
He further questions whether buyers can be considered owners when HDB retains the authority to regulate resale, rental, and even property use. For example, flat owners must seek HDB approval for renting out units and are subjected to eligibility conditions for resale.
Ang also pointed to practical limitations, such as the inability to use HDB flats as collateral for loans—a privilege granted to private property owners. He questioned:
“Do I really own my HDB flat when it is not an acceptable collateral to financial institutions?”
Additionally, Ang highlighted that in cases like the Selective En bloc Redevelopment Scheme (SERS), flat owners have no choice but to return their units to HDB, which unilaterally determines compensation. This contrasts with private leasehold owners who can negotiate directly with developers in en bloc sales.
Differences between HDB and private leasehold ownership
Ang’s critique echoes the views of other analysts, who have long argued that HDB lessees face restrictions that private leasehold property owners do not. These include:
- Approval requirements for renting out flats or making major renovations.
- Mandatory inspections by HDB before resale.
- Lack of en bloc redevelopment options.
- Publicly accessible common areas under HDB’s control.
Additionally, Ang emphasised that HDB buyers are subject to changes in regulations imposed by HDB, whereas private leasehold property owners enjoy greater autonomy.
Historical context of the ownership debate
The government has consistently promoted the narrative of homeownership as a cornerstone of Singapore’s housing policies, emphasising its importance for national loyalty and financial security.
In 2018, then-Prime Minister Lee Hsien Loong defended the classification of HDB flat buyers as owners, stating:
“HDB lessees have all the rights over their flats that owners of such leasehold private properties have. You can live in it, you can transact it, you can bequeath it to your children – it is yours.”
However, as Dr Thum Ping Tjin, managing director of New Naratif, pointed out, this argument conflates the legal ownership of a lease with full ownership of the property. Dr Thum explained:
“The purchase of a lease means you ‘own’ a lease… Legally, it is the HDB which owns the flat. This gives the PAP government a legal basis for claiming that Singaporeans have ‘ownership.’”
Dr Thum argued that the government’s narrative is tied to political objectives, ensuring that Singaporeans feel they have a stake in the nation. He noted that HDB lessees have more rights than renters but fewer rights than private leasehold owners.
Government’s stance on HDB ownership
The government has repeatedly defended its position, stating that HDB flat buyers are homeowners under the Housing and Development Act. A 2020 explanation from the government website stated:
“HDB flat buyers who purchase a 99-year lease flat own the rights to their flats for 99 years, just like buyers of 99-year leasehold private properties.”
The government also highlighted that buyers can sell or monetise their flats through schemes like the Lease Buyback Scheme, providing them with benefits beyond those of renters.
Additionally, the leasehold framework is described as essential for land-scarce Singapore. The government argues that it allows land to be recycled for future generations while ensuring affordable housing remains accessible.
HDB’s legal stance
HDB has also responded to his concerns in a series of letters, reiterating its position that HDB flat buyers are considered owners under Singapore’s Housing and Development Act.
The Act defines “owner” to include a person who has purchased a leasehold interest in the property. Additionally, the names of flat buyers appear on title deeds, further reinforcing their ownership status, according to HDB.
In its 21 November 2024 reply, HDB stated: “During the period of ownership, [flat buyers] can decide to live in the flat, renovate it, rent it out, or sell it once they meet the eligibility conditions. They can decide on the selling price or rental rate of the flat, and they get to keep the proceeds from these transactions. These are rights and benefits that only a flat owner can enjoy.”
However, Mr Ang countered these points, asserting that these rights could also be extended to lessees through lease agreements, undermining HDB’s argument.
He pointed to a 2001 parliamentary speech by then-Deputy Prime Minister Lee Hsien Loong, who referred to HDB flat buyers as “lessees.” He also noted that private property buyers with 99-year leases receive a subsidiary strata certificate of title, whereas HDB flat buyers receive a subsidiary certificate of title.
Speaking to TOC, Mr Ang said, “As expected, HDB has not been able to clarify any of the points raised.” He added that he has done all he could to seek answers but has been unable to obtain them and will now move on to other matters such as CPF, GIC, Temasek, transparency, and more before calling it a day.
Continuing the discussion in light of affordability goals
The debate over HDB ownership has been a long-standing issue, and while it has never truly subsided, it is worth revisiting in light of recent comments by Prime Minister Lawrence Wong and Minister for National Development Desmond Lee on making housing more affordable.
As Singapore heads into a general election this year, where housing affordability is expected to be a central issue, it may also be time to address the persistent questions surrounding the ownership status of HDB flats.
Mr Ang’s relentless calls for transparency bring to the forefront unresolved contradictions in the government’s stance. While HDB flat buyers are classified as “owners” under the Housing and Development Act, they are simultaneously bound by lease agreements that define them as lessees, with limitations on their rights compared to private property owners.
These contradictions continue to raise concerns about the legal and practical implications of HDB ownership, especially as housing affordability and asset security remain critical to Singaporeans.
Given the political and economic significance of public housing in Singapore, revisiting this issue during a time of heightened focus on affordability and public policy could bring much-needed clarity.
As housing becomes a key election topic, addressing ownership definitions openly and transparently may help to rebuild trust and strengthen confidence in Singapore’s public housing model.
Ultimately, resolving these questions could ensure that public housing remains not just affordable, but also fair, equitable, and aligned with the needs of current and future generations.
