SINGAPORE: In the third part of The Workers’ Party’s explainer mini-series on public housing issues in Singapore, a child is seen building a city with mini-figs who then goes on to ask Sengkang GRC MP Jamus Lim why housing has gotten so expensive and why wait times are so long.
Assoc Prof Lim explained the situation against the background of Rivervale Shores in Sengkang, one of the newest BTO projects. He said that part of the lag in housing has been due to the Covid-19 pandemic. “But part of the reason has been due to a supply shortfall that has blighted the entire island,” he added. And many families have had to wait for as long as six years.
The video is a look at how HDB builds, prices, and sells housing units, as well as asks if there is an alternative way.
The model of building only when there is a demand for flats may not be the most appropriate one, he said, citing the example of what occurred during the pandemic.
While no one anticipated what the pandemic would bring, however, it meant an additional waiting time of three, four, or even five years for some would-be homeowners.
“We think that the government can do more in terms of building in advance,” with household formation, population growth rate, and immigration all being predictable.
He also tackled the issue of land being so expensive in Singapore.
“Land has many uses, just like how the government already prices land for commercial as well as non-commercial uses differently.”
Pricing housing land at a discount relative to the price of commercial land can bring many advantages, he added, including helping keep HDB flats affordable.
As to selling public housing units, the Sengkang MP noted that times have changed since the policy was set for selling flats with 99-year leases.
At this point, more alternative lease durations, especially shorter ones, can be offered, such as the existing flexi plan for older people.
Another possibility would be rentals, which many younger Singaporeans are open to.
However, rentals have been expensive, leading Assoc Prof Lim to ask if a public rental scheme would be possible for even larger format homes rather than the smaller ones now available.
He added that for the final instalment, his fellow Sengkang MP Louis Chua will discuss alternative models of the 21st century.
On Wednesday (Aug 16), Mr Chua explained the crux of Singapore’s public housing dilemma, that homes are expected to be both affordable and investment at the same time.
And in the second instalment, Assoc Prof Lim examined the history of public housing in Singapore and explained how the current issues came about. /TISG
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