Is an older resale HDB flat less desirable? While it’s true that most buyers prefer properties with a longer remaining lease, older resale HDB flats (with a shorter remaining lease) are still in demand. According to The Business Times, the number of older resale HDB flats sold in 2022 more than doubled over the last decade: in 2012, the proportion of older flats sold was only 15% out of all the HDB flat types sold, and it jumped to 37% in 2022.
As the data shows, buyers are, in fact, interested in older flats, despite common fear about their reduced property value as a result of a shorter remaining lease. Older flats still have value, most especially when they are located in mature estates and are typically larger, as the government continues to improve the quality of resale HDB flats through the Home Improvement Programme (HIP).
Your Guide to the HDB Home Improvement Programme (HIP)
Introducing the Home Improvement Programme (HIP)
The Home Improvement Programme (HIP) was introduced in 2007, replacing the previous Main Upgrading Programme (MUP), to maintain the quality and design of older HDB flats with a focus on upgrades within the flat. The HIP also addresses homeowners’ common maintenance problems with ageing flats.
How does the HDB HIP work?
The HIP will only proceed if at least 75% of a block’s eligible Singapore Citizen households have voted in favour of it. Singapore Permanent Resident households are not eligible to poll. To find out if your block has been shortlisted for polling, go here.
If your block votes in favour of HIP, you will enjoy Essential improvements that are important for public health and safety. At the same time, you can add Optional and Enhancement for Active Seniors (EASE) improvements.
Barring any unforeseen circumstances, the general time taken for HIP to be completed for an estate of 8 to 10 blocks is about 1.5 to 2 years. Each flat unit will take 10 working days or less, depending on the improvements chosen.
What’s included in the HIP?
The scope of HIP consists of 3 components – Essential, Optional, and EASE improvements.
The 3 components of HIP
| Essential Improvements | – Repair of spalling concrete and structural cracks – Replacement of waste/ soil pipes – Replacement of pipe sockets with new clothes drying rack – Upgrading of electrical load |
| Optional Improvements | – Toilet/ bathroom upgrading (wall/ floor tiles and sanitary fittings) – New fire-rated main door or non-fire-rated main door – New metal grille gate – New refuse chute hopper, where applicable |
| Enhancement for Active Seniors (EASE) Improvements | – Slip-resistant treatment for bathroom tiles – Grab bars – Single-step ramp for a single-step entrance; or portable/ customised ramp for a multi-step entrance – Wheelchair lifter |
How does the HIP benefit you?
#1: Improving quality of life
The purpose of the HIP is to assist residents to have a better quality of life in their aging flats,by ensuring that common maintenance problems are resolved. This includes issues such as spalling concrete, ceiling leaks and damaged pipes.
#2: Catering to the needs of the elderly
The EASE improvements enhance the mobility for senior citizens. For instance, if you have selected grab bars and slip resistant tiles in the toilet as an option, this will allow the elderly to move around more easily and also reduce the risks of falling.
#3: Affordable payment scheme
Furthermore, the HIP is affordable as it is heavily subsidised. For instance, the essential improvements are fully funded by the government for Singaporeans. Up to 95% of the optional and EASE improvement cost is subsidised, so eligible Singaporean households need only pay a small fraction of the cost for the upgrading works.
Upgrading cost for Optional Improvements
Owners will pay between 5% and 12.5% of the cost for any chosen Optional improvements, depending on the flat type, and it will be capped at $1,375.
| Flat Type | 1/ 2/ 3-Room | 4-Room | 5-Room | Executive |
| You Pay | $550 (5%) | $825 (7.5%) | $1,100 (10%) | $1,375 (12.5%) |
| Government Pays | 95% | 92.5% | 90% | 87.5% |
Upgrading cost for EASE Improvements
| Flat Type | 1/ 2/ 3-Room | 4-Room | 5-Room | Executive |
| Cost-sharing ratio | 5% | 7.5% | 10% | 12.5% |
| Amount Payable* (Full EASE package with single-step ramp) | $125 | $187.50 | $250 | $312.50 |
| Amount Payable* (Full EASE package with portable ramp) | $147 | $220.50 | $294 | $367.50 |
| Amount Payable* (Full EASE package with customised ramp) | $192 | $288 | $384 | $480 |
For elderly residents living in HDB rental flats, the improvement items will be fully funded by the Government.
EASE is also highly subsidised by the government. If a resident selects all the EASE items, the cost would be about:
- $2,500 (with single-step ramp at main entrance)
- $2,940 (with portable ramp at main entrance)
- $3,840 (with customised ramp at main entrance
You can go here to calculate how much you’ll need to pay for HIP. And go here to check if you’re scheduled to make payment for the HIP here.
Upswing in value of resale flats
Addressing wear-and-tear of HDB flats is pivotal in the long run, as maintaining the quality of the flats will improve the value as well. For example, in 2015, the HIP was announced for blocks 166 and 169 at Bedok South Avenue 3 and was successfully completed in 2021. If we look at the resale prices of the 4 room flats in these 2 blocks, there was a price surge after the HIP was completed.
For instance, the transacted price of the 4 room flat (1,119 sqft) before the HIP was $428.9k in 2011. But upon the completion of HIP, the same flat was transacted at $470.0k in 2021. This was a 9.6% increase in value of the flat.
Let’s take a look at another example:
Block 145 at Bishan Street 11 was earmarked for HIP in 2012, with upgrading subsequently completed around 2017. If we look at the resale prices of both the 4-room and the 5-room flats in block 145, resale prices increased after the HIP was completed. For instance, the transacted price of the 4 room flat (904 sqft) was $420.0k. But upon HIP completion, the same flat was transacted at $458.0k in 2018 – a 9.0% rise in the flat’s value.
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