AGEING-IN-PLACE AND HOUSING PREFERENCES OF ELDERLY IN SINGAPORE

Abstract

Singapore’s rapidly ageing population has compelled the need for housing monetisation options as part of the individual’s retirement financing plans. In 2009, the Government introduced the Lease Buyback Scheme (LBS) to enable the elderly to monetise their flats and receive a stream of income while continuing to agein- place at their current units. Using the introduction of the LBS in March 2009 as an exogenous shock, I test for the effects of the introduction of LBS on housing transaction prices and the size of units transacted to investigate if buyers have the intention to downsize or age-in-place after the policy was introduced. I find evidence that post 2009, buyers were deterred from downsizing and preferred to purchase units which were larger in size. This study also explores the policy implications that such changes in buyer’s preferences may have on future housing policies.

Keywords: housing monetization, Lease Buyback Scheme, downsizing