Not only HDB but leasehold private property time bomb has also started ticking

On 19 July 2005, new CPF limits were imposed on 99-year leasehold private property (LPP) with a lease of less than 60 years.

There was of course no impact because very few 99-year LPPs were approaching 40 years.

Today, the above-mentioned properties (list below) have turned 40 and additional CPF limits are now a drag on prices.

leaseholdprivateproperty1
In the next decade, more properties will hit the market, putting a lid on/depressing prices.

leaseholdprivateproperty2
The situation is set to worsen when a condominium hits 40 every other month beginning in 2030.
leaseholdprivateproperty3(List of condos above is not a complete list)

Investors will of course attempt to exit years before the tsunami hits, ie prices may start to head south in the next few years.

Coupled with the HDB time bomb, the property market is likely to collapse without major policy changes.

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