The recent policy change to lower the age threshold for seniors applying for Community Care Apartments (CCA) aligns it with the eligibility for 2-room flexi flats. This adjustment provides seniors with more housing options, including lease buyback schemes, silver housing bonuses, and the choice between 2-room flexi flats or CCAs, depending on their needs.
The Basic Service Package cost for CCAs will be reduced by up to 75%, significantly enhancing affordability for seniors. This reduction is expected to increase the application rate for CCAs, which had dropped to 0.7 in the last CCA project at Fernvale Plains, from an initial 4.2 when first introduced. Huttons anticipates the application rate for the upcoming Toa Payoh CCA in October 2026 to rise above 1.
An increase in CCA applications could lead to more larger flats entering the resale market in three to four years. However, these flats may be older with shorter leases, potentially limiting the pool of buyers who can use CPF to finance their purchase.
