Public Housing Policy in Singapore

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The next section will discuss the impact of public housing policy in terms of 1) affordability 2) housing consumption efficiency and 3) social stability. 3 AFFORDABILITY OF SINGAPORE PUBLIC HOUSING Firstly, the Government has been successful in providing affordable public housing to the Singaporean. The affordability of the public housing is maintained as a result of several key policies of the Government such as 1) below market pricing for new flat 2) concessionary loans and financing from Central Provident Fund (CPF) and 3) sufficient land to build new flats through Land Acquisition Act (HDB, 2014). Since 1960s, the Government has adopted a market based approach which new HDB flats are priced in reference to and at discount from the market determined price rather than cost of land and construction (Tan et al, 2009). As a result, higher home ownership rate of 90.5% in 2013 with 80% ownership of public housing has been recorded by Department of Statistics Singapore. In return, higher home ownership rate has definitely benefit the homeowners at the expense of the Government subsidies. However, will public housing be affordable given the aging population, income disparity and volatile housing prices come into existence? In my opinion, the public housing will be less affordable especially to low and middle income Singaporean if any of the scenario happened. For example soaring private housing prices under speculated market will set a higher market price for public housing of the same capacity. In this case, low and middle income Singaporean who can’t afford private housing are price takers and have to purchase public housing at relatively higher rate than the actual market price. Secondly, is HDB concessionary loan really contrib... ... middle of paper ... ...partemnt of Statistics. 2013. YearBook of Statistics Singapore 2013. Singapore: Department of Statistics Singapore. Thakur, Pooja. 2014. Singapore’s Soaring Land Prices ‘Suicidal’ for Developers . February 20. Accessed March 4, 2014. http://www.bloomberg.com/news/2014-02-19/singapore-s-soaring-land-prices-suicidal-for-developers.html. 2014. Urban Redevelopment Authority. Accessed March 4, 2014. http://www.ura.gov.sg/uol/. Vasu, Norman. 2011. "Governance through Difference in Singapore." Asian Survey. Wah, Tan Meng. 2013. Public Housing Pricing: Looking Beyond Just Affordability. Singapore: Institute of Policy Studies. —. 2011. "Housing A More Inclusive Singapore." The Straits Times, January 13. William, Mok Fung Yeung, and Yee Pui Puey Lo . 2012. "Comparative Study on Singapore and Hong Kong Housing Policy - Should Hong Kong adopt Singapore model?" Hong Kong.
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