At least S$40,000 in subsidies. Residents, analysts and agents believe that is the minimum needed to entice people living in mature towns to join their grown-up children in newer ones.
Even then, the take-up rate is unlikely to be high, they told The Straits Times, because it will be hard to convince parents to uproot themselves from familiar surroundings.
To strengthen family bonds, National Development Minister Khaw Boon Wan said last week that he would look into providing incentives for parents in mature estates to move out. This would allow children who wish to join their parents in mature estates to have a higher chance of buying the freed-up flats.
But even before the details have been rolled out, analysts and residents are lukewarm on the idea. For instance, office manager Lucy Kuah’s eldest child lives in Sengkang, but the 59-year-old will not leave her four-room Bukit Merah flat to join him – with or without the incentive.
“My neighbours are not the noisy kind, and the hawkers at the market know me,” she said. “Now, resale prices are going down, I’d better ask my son to come back here instead.”
Real estate agents notice a reluctance to move, too.
“Most of the time, when people move out of mature estates, it’s to upgrade to an executive condo or higher,” said Dennis Wee Realty group director Dennis Foo, who focuses on Tampines.
“But even though I take them to nice areas like Punggol or Sengkang, they don’t really bite. They still feel like Tampines is home.”
If the Government plans on having an incentive, it should be upwards of S$40,000, said Mr Foo.
This would be about 10 per cent of the price of a new Build- To-Order (BTO) four-room flat.
It would match the S$40,000 subsidy offered to first-timers who buy a resale flat near their parents or children.
Buyers of new flats do not get additional subsidies. But they have double or triple the number of chances at the ballot, should they live near or with their parents or married children.
Property analyst Chris Koh of Chris International thinks the proposed incentive should be as high as a S$50,000 grant for parents who move into BTO flats in non-mature towns.
Many elderly parents may soon retire and have no more income, he said. A sizeable grant could help finance that new home.
But it also depends on whether they have reached their Central Provident Fund Minimum Sum, or whether the top-up requirement can be waived. Currently, Singaporeans aged 55 and above will have to top up their Retirement Account to meet their cohort’s Minimum Sum with the proceeds of the sale.
“If you haven’t reached the Minimum Sum, then all the potential profit won’t be much of an incentive any more, since it can’t be cash in hand,” he added.
SLP International research head Nicholas Mak thinks a grant would be hard to administer, especially if the parents have bought a Housing Board flat twice. Currently, a Singaporean household which has already bought two units from the HDB is not eligible to apply for another flat.
Besides, any incentive would be “a bit like a baby bonus – it’s not enough to convince people to have three, four children,” he said.
But despite a general reluctance among residents to leave mature estates, at least one couple is willing to leave their Tampines home of 20 years to join their younger son in Bukit Panjang.
Officer Adnan Hajisirat, 55, said a S$40,000 grant would be a “blessing” that can facilitate the move for him and his wife.
“Singapore is small, so there shouldn’t be a problem meeting my friends and neighbours,” he said. “But family is different. Family is more important.”
This article was first published on July 21, 2014. Get a copy of The Straits Times or go to straitstimes.com for more stories.