Rhetoric set aside, HDB flats are both owned and leased

THE debate over Housing & Development Board (HDB) flats has unfortunately been dominated by the rhetoric of whether the homes are owned or leased.

That either-or debate is misguided. Just as a tomato is not only either a fruit or a vegetable, but both; HDB flats do not behave as if they are assets that are only either owned or leased, but both.

Flat buyers obtain transferable equity in an asset, which means that, like owners, they are exposed to changes in the future value of the asset. But the asset also behaves like a long-term leas…