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Archive for September 11th, 2018

What are the differences between 99 year leasehold properties and HDB flats?

Posted by temasektimes on September 11, 2018

In land scarce Singapore, the majority of properties come with a limited lease of a 99 year tenure which includes both public and private housing.

Though both HDB flats and 99 year leasehold private properties come with a 99 year lease, there are many differences between the two which emanate from different types of ownership leading to different property rights and entitlements with regards to their sale, rental and refurbishment as encapsulated in different terms and conditions as stipulated in the contracts.


Ownership structure:

Buyers of 99 year old leasehold properties are buying a 99 year old strata properties which include the property and part of the land on which the property is built.

Leasehold private properties are strata title properties while HDB flats are not. Strata title allows individual ownership of part of a property (called a lot’ and generally an apartment or townhouse), combined with shared ownership in the remainder (called ‘Common Property’ e.g. foyers, driveways, gardens) through a legal entity known as the MCST or Management Corporation Strata Title which is responsible for managing the property and the surrounding land.

In contrast, HDB flat buyers are only buying the 99 year old lease from HDB. They own the lease, but not the flat or land on which it is built. HDB retains the ultimate ownership of the land and flat.

Read rest of article here.


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HDB contract is signed between a LESSOR and a LESSEE

Posted by temasektimes on September 11, 2018

A reader has emailed us a copy of a HDB contract he signed lately when purchasing a BTO flat:




It is stated very clear in the contract above that HDB is the LESSOR and the buyer is the LESSEE

According to the Oxford dictionary of English:

LESSOR is a person who leases or lets a property to another; a landlord.

LESSEE is a person who holds the lease of a property; a tenant.

It is pretty obvious even to the layman that HDB flat dwellers DO NOT own their flats. They are merely LEASING their flats from HDB which remains the “superior landlord”.

What HDB flat dwellers own is the LEASE of the HDB flat which the landlord allows to be sold to another party. When one sells his HDB flat, he is selling the remaining lease, not the flat or the land on which it is built on.

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PAP Ministers get paid up to 17.5 months of bonuses in a good year

Posted by temasektimes on September 11, 2018

Already the highest paid ministers in the entire world based just solely on their annual salaries alone, it was revealed in Parliament yesterday that the PAP ministers received on average a performance bonus of 4.1 months last year, excluding the customary 13th month bonus.

Apart from monthly salary, the pay components include the following:

  1. A 13th month non-pensionable annual allowance.
  2. A performance bonus.
  3. A national bonus.
  4. An annual variable component as paid to civil servants.

The national bonus is pegged to the four key national economic indicator targets: Real median income growth rate, real growth rate of lowest 20th percentile income, unemployment rate and the real gross domestic product growth rate.

It is capped at six months, with political officeholders getting three months if the Government meets the targets set for the indicators.

The annual variable component, which is given twice a year based on the country’s economic performance, typically ranges between zero and 1.5 months.

Performance bonus used to range from zero to 14 months, where good performers typically get nine months.

This means that for a “good” year, a minister can potentially earn up to 1 (13th) + 9 (performance) + 6 (national)+ 1.5 (annual variable component) = 17.5 months of bonuses!

In contrast, the U.S. President earns only US$400,000 or S$552,000 annually, way less than a junior minister in Singapore.

The average salary in Singapore is S$67,152. This average out to be S$5,596 per month, inclusive of employer’s CPF contribution.

The latest result indicates that the Median Gross Monthly Income from work, inclusive of CPF contributions of full-time employed residents is at S$4,232.


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