Singapore’s Affordable Housing

"Public housing in Singapore is not just about putting roofs over people's heads, but also about building an inclusive home for all Singaporeans," - K.C. Ho.

Singapore

After Singapore gained its independence, the government of the day had a serious housing shortage. In February 1960, the government established the Housing Development Board. Its mission was to provide social housing sufficient to house most Singaporeans and to offer them the opportunity to own their home.

Leadership

Lee Kuan Yew, Singapore’s first Prime Minister, served the nation from 1959 to 1990. He and his government had the political will to achieve the goal, through the Housing Development Board, of providing affordable housing for all Singaporeans. During his tenure, his policies led to economic prosperity, to being a financial powerhouse, to having an educated populace, and to well-planned urban development.

Housing Development Board

HDB used a few strategies to achieve the goal of affordable housing.

• HDB did this by high density multi-level mass public housing.

• Because Singapore had limited land available to build upon, high-density, high-rise accommodation was the only realistic solution.

• Offering subsidised purchase plans, with low interest loans, was an effective pathway for increased home ownership.

• Having the foresight to have a rejuvenation plan in action kept housing updated and

  well maintained.

• Green areas, technology, eco policies, and community values all improved the quality of life for residents.

• Resale Limits

To keep housing affordable for everyone in the nation, the limits placed on sale of properties kept sale prices in check. This strategy was successful as one well informed commentator indicated,” They dramatically increased stamp duty on purchases of second, and third homes. By dramatic increased I mean in the order of 200 to 300%. If you were a foreign national buying Singapore property, same thing. Also, they restricted “flipping” if you were in these categories then you could not sell for five in (I think} years. That stopped the price increases in its tracks”.

The home ownership scheme is successful with over 80% housed.

Affordable Housing is possible for all nations. Determined, visionary leadership coupled with effective policies from government agencies as shown in Singapore is only one example of affordable housing. Singapore had its own unique issues, as will other nations dealing with their own unique circumstances. The more successful a nation is in meeting the needs of its citizens, such as housing, the more prosperous a nation will be in all areas of human endeavour.