Retirees in Singapore have four main property strategies as of 2026: (1) downsize to a smaller HDB/condo for cash extraction, (2) use HDB Lease Buyback Scheme (LBS) for guaranteed income, (3) stay in current home and tap reverse mortgage, or (4) move to a co-living retirement community. Most retirees combine 2-3 strategies. Average cash unlock from downsizing a 5-room HDB to 3-room: S$200,000–S$400,000.
Four retirement property strategies
| Strategy | Cash unlock | Ownership retained | Suitable for |
|---|---|---|---|
| 1. Downsize | S$200k-500k | Yes (smaller home) | Owners with large flats; flexible |
| 2. Lease Buyback Scheme | S$50k cash + CPF + income | Yes (retained occupancy) | HDB owners age 65+ |
| 3. Reverse mortgage | S$200k-2M (private only) | Yes | Private property owners; high-value homes |
| 4. Move to retirement community | Variable | Lease or buy unit | Mobility/healthcare-conscious retirees |
Strategy 1: Downsizing
The most common retirement move. Typical scenario:
| Item | Amount |
|---|---|
| Current 5-room HDB (Toa Payoh, mature) | S$900,000 |
| Mortgage remaining | S$50,000 |
| CPF refund (with accrued interest) | S$280,000 |
| Net cash from sale | S$570,000 |
| New 3-room HDB resale | S$500,000 |
| Cash + CPF deployed | S$500,000 |
| Stamp duty + legal | S$10,000 |
| Net cash retained | S$340,000 |
Strategy 2: Lease Buyback Scheme (LBS)
HDB owners aged 65+ can sell back the tail end of their lease to HDB while retaining 30 years of occupancy. Source: HDB LBS.
- One-time cash bonus: S$5,000–S$30,000
- CPF top-up: Released to LIFE annuity
- Monthly LIFE income: Based on remaining lease value sold
- Continued occupancy: Up to 30 years (until age 95)
Strategy 3: Reverse mortgage (private property)
Reverse mortgages allow private property owners (not HDB) to borrow against home equity. Singapore's reverse mortgage market is small (~3-5 active products) but growing.
- Typical LTV: 30-40% of property value
- No monthly repayment required; interest accumulates
- Loan repaid on sale, death, or moving out
- Suitable for: high-value property + need for cash income without sale
Strategy 4: Retirement community
Co-living retirement communities (e.g. The Hillford, Kampung Admiralty) offer:
- On-site healthcare and meal services
- Community activities
- Sale or lease options
- Typical entry: S$500k-1.5M
Financial implications
| Item | Downsize | LBS | Reverse mortgage |
|---|---|---|---|
| Liquidity | Highest (one lump sum) | Monthly income | Lump sum or monthly |
| Estate to heirs | Smaller property + cash | 30-yr right + cash | Encumbered property |
| Disruption | High (move) | Low (stay in flat) | Low (stay) |
| Fee structure | 5-7% transaction | None | 1-2% origination |
FAQ
Is downsizing always financially optimal?
Not always — moving costs + CPF refund obligations can eat into cash unlock.
Can both spouses access LBS?
LBS applies per household; one application per flat.
Are reverse mortgages tax-free?
Yes — loan proceeds are not taxable income.
Can I do LBS and downsize later?
Yes — selling the LBS flat is possible but you must repay the lease buyback amount.