The Ministry of National Development (MND) and the Housing & Development Board (HDB) introduced the 2-room Flexi Scheme today. The new scheme merges and replace the existing 2-room flat scheme and Studio Apartment (SA) scheme. It allows choice of lease and fittings for buyers. Apart from providing more flexibility, this new housing scheme intends to better cater various housing needs of families, singles and elderly.
Table 1: Lease Options for Short-Lease 2-room Flexi Flats
First-timer and second-timer families and first-timer singles will continue to be offered 99-year lease term. On the other hand, elderly citizens aged 55 and above can opt for shorter lease as a monetisation option, even though they have enjoyed housing subsidies previously or own a private residential property.
Two sizes will be available under this new scheme - 36 sq m and 45 sq m. Purchasers on 99-year lease term will continue to have the option of flooring and sanitary fittings under the Optional Component Scheme (OCS). Meanwhile, elderly who buy on short leases will be able to choose from three new OCS packages specially tailored for them.
In future Build-to-Order (BTO) projects, at least 40% (subject to a minimum of 100 units) of the 2-room Flexi flats will be set aside for the elderly. Half of this quota will be reserved for elderly who apply for a unit close to their current flat or near their married child. The elderly are not required to pay forfeiture fees if they cancel their new flat or SA application before 19 August 2016 and book a short-lease 2-room Flexi flat.
Separately, the new ruling will waive the interest accrued on resale levy for second-timers aged 55 and above who sold their first subsidised flat before 3 March 2006.
The 2-room Flexi Scheme and the waiver of accrued interest on resale levy for elderly who are right-sizing will be implemented from the September 2015 BTO exercise.