SINGAPORE: During last week’s house visits at Sengkang, Workers’ Party MP Jamus Lim talked with residents about a number of issues, but a conversation about the affordability of housing stood out among them, he wrote in a Facebook post on Thursday (Apr 4).
Assoc Prof Lim heard from a resident who was concerned over the high prices of HDB flats, fearing that her children would not be able to afford their own home.
“This concern went beyond having a roof over one’s head. Not having a place also lends uncertainty about how independent one truly is, and may also lead to delays in deciding on whether one should start a family. Since the 1990s, the price of HDB flats has stretched the budgets of more and more households,” he wrote.
The MP noted that while the government’s aim for house price-to-median income ratio has been met, “there remain problems with blithely accepting the current state of affairs.”
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Assoc Prof Lim noted that the ratio is computed using household incomes with two working adults as opposed to in other cities, where median individual income is factored in. Should Singapore do this, housing would get into “seriously unaffordable territory,” he wrote, adding that for Singaporeans, unlike in other countries, the option to move to less expensive areas is absent.
He then went on to note what is for him the “most problematic” aspect of the housing policy. Because the ratio factors in the median family, “this means that for at least half the population, housing is even less affordable.”
With housing, finding less costly substitutes is more difficult than simply opting for less expensive food or transport choices.
“The rental market here is small and typically even more expensive than a mortgage, and a young family can only downsize that much before the place becomes uncomfortably cramped,” he added, before underlining his main point that “housing, unlike many other purchases, is much more essential to one’s quality of life.
With limited affordable alternatives, high HDB prices threaten this quality of life. And despite the current slate of grants and subsidies, homes remain expensive for many Singaporeans, and all the more for those in lower income brackets.
Even as elevated house prices are great for supporting the retirement incomes of those already on the housing ladder, the same can’t be said for our young families.” /TISG
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