See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/236979522

Affordable and Sustainable Housing Policy - A Singapore

Perspective

Conference Paper · May 2013

CITATION READS
1 8,481

1 author:

Anthony Yeong
Southern Cross University
3 PUBLICATIONS   48 CITATIONS   

SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Researching on apply ancient Chinese philosophy to modern project management practice View project

All content following this page was uploaded by Anthony Yeong on 30 May 2014.

The user has requested enhancement of the downloaded file.

 Affordable &
Sustainable Housing Policy –
Singapore Perspective

Dr Anthony Yeong
DBA, MBA, PMP, PRINCE2 Practitioner
Independent Researcher
14th May 2013
Affordable & Sustainable
Housing Policy – Singapore Perspective

Introduction Past Present Future

2013/5/4
“Housing was and is a most important public policy, one
with profound influence on the lives of our people and
has moulded the cohesive society we have.”

- First Prime Minister of Singapore, Mr Lee Kuan Yew

What is Affordability?

• Affordable housing is housing that is appropriate for the needs of a range of

very low to moderate income households and priced so that these households
are also able to meet other basic living costs such as food, clothing, transport,
medical care and education.

• As a rule of thumb, housing is usually considered

affordable if it costs less than 30 percent of gross
household income. Family and Community Services, Housing NSW, Australia

• MAS will cap the Mortgage Servicing Ratio (MSR) for housing
loans granted by financial institutions at 30% of a borrower’s gross
monthly income. Monetary Authority of Singapore
 Singapore Housing in the Past

• Colonial Government
(1867–1942)
• Public housing begun in 1930s
• Singapore Improvement Trust (SIT)

• Self Government (Post World War II)

(1955–1963)
• 20,907 houses in 1959
• Only able to provide housing
for 8.8% of the 1.579m population

(Source: National Library Singapore)

“In 1947, the British Housing Committee Report noted

Singapore had "one of the world’s worst slums”
Singapore Housing in the Past

• Housing Development Board, Singapore

Formed: 1st February 1960
• Government Body: Ministry of National Development
• To build as many low-cost housing units as possible
(5 Years Plan)
• 1960 to 1969: an average of 147,000 housing units
• Republic of Singapore (1965 – Present)
Singapore Housing in the Past

• SIT developed the satellite town of Queenstown, it built three blocks at

Stirling Road, Block 45, 48 and 49.
• Only half built when SIT was dissolved.
• Task was handed over to HDB.
• The seven-storey flats were considered the first ever flats built by HDB (1960)
Government Policy

• Three Fundamentals
• Sole Agency
• Total Approach
(Planning, Design, Build, Maintenance)
• Strong Government Support
(Political and Financial Commitment, Legislation and Regulation)

(Source: HDB)
Government Policy

• Core Commitments
• Homes for ownership
• Homes for the masses
• Homes for life

• Challenges Ahead
• More Homes for first-timers
• Homes for diverse needs
• Homes within budget (Affordable Housing)

(Source: HDB)
Central Provident Fund (CPF)
A compulsory savings plan for working Singaporeans and permanent
residents primarily to fund their retirement, healthcare, and housing needs.
Employee’s Employer’s
Contribution Contribution
(20% of Salary) (16% of Salary)
(Below Age 55) (Below Age 55)

(6% of wage) (23% of wage) (7% of wage)

Special Ordinary MediSave Retirement
Account Account Account Account

Approved Investment Products Housing Needs Hospitalization Retirement

100% Withdrawal New House Expenses (Age 55)
100% Withdrawal Resale House
CPF & HDB

CPF Board Buyer’s HDB Board

Monthly
CPF
Repayment

Buyer’s
Monthly Bank
Repayment
Approved Mortgage
Financing Plan

Buyer of HDB Flats Application of

Mortgage Loan Bank
Present Public Housing in
Singapore
HDB New Flats Prices

(Source: HDB website 2013)

HDB New Flats Prices

(Source: HDB website 2013)

HDB Resale Flats Prices

(Source: HDB website 2013)

Government Policies –
Affordable Housing
• 90% of Land owned by the Government

• Land Cost is not factored into the sale price of public housing for buyers

• CPF – a compulsory mean for Singaporean to pay for public housing

• Various public housing options to cater for buyers with different income levels

• Government intervention (Regulatory actions) of resale housing market

Feb 5, 2013
“National Development Minister Khaw Boon Wan said the core
principle behind the pricing of new HDB flats remains affordability.”
How Affordable Are Our Homes Today?

(Source: NUS Research 2011)

Home Ownership Distribution

Tenure Singapore Hong Kong London Sydney

Structure Metro

Public 82% 45% 23% 5.5%

Housing

Own 80% 15.7% 0% 0%

Rent 2% 29.3% 23% 5.5%

(Source: Straits Times, 27 Feb 2010)

Significant Property Cooling Measures

• HDB flats owner wish to purchase private property needs to meet

Minimum Occupation Period (MOP) of 5 Years.
• Private property owner has to sell off the private property within 6 months
upon purchase of HDB flat.
HDB Cooling Measures 2013

• a) Tighter eligibility for loans to buy HDB flats:

i) MAS will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by
financial institutions at 30% of a borrower’s gross monthly income.
ii) For loans granted by HDB, the cap on the MSR will be lowered from
40% to 35%.
• b) PRs who own a HDB flat will be disallowed from subletting their whole flat.
• c) PRs who own a HDB flat must sell their flat within six months of purchasing
a private residential property in Singapore.

(Source: IRAS 11 Jan 2013)

Public Housing for the Future
Public Housing for the Future

Challenges:
• Increasing Population with diverse demographic
• Aging Population
• Amenities
• Sustainability
Public Housing for the Future
Challenges: Increasing Population

Singapore’s Population • More Public Housing?

Projection 2030
• Taller Building?
6.0m 6.9m
5.31m
• More Diverse Demands?
• Re-develop Older Estates?
2012 2020 2030
Public Housing for the Future
Challenges: Aging Population
Challenges: Aging Population

• HDB's Studio Apartments are designed to meet the needs of elderly.

• Above 55 years old
• Two Sizes: 35 square meters / 45 square meters
Pull Cords located
within the living room,
bedroom, toilet, and
household shelter
linked to
the Alert Alarm
System
Challenges: Aging Population

Slip-resistant Ramp for wheel-chair

Tiles

Grab bars within the flat

Public Housing for the Future
Challenges: Amenities
• Schools
• Industrial Premises / Commercial
• Shops
• Wet Market / Supermarket
• Sports / Swimming Complexes,
• Banks / Libraries
• Food Courts / Coffee Shops / Cinemas
• Bus / MRT / LRT Stations
• Community Clubs
• Places of Worship
• Gardens / Parks etc
Public Housing for the Future

Challenges:
• Sustainable Development

Treelodge@Punggol, an eco-town utilised

solar panels and rainwater harvesting.
 What is Sustainability?

“Sustainable development is
development that meets the
needs of the present without
compromising the ability of
future generations to meet their
own needs.”

(Source: United Nations General Assembly (March 20, 1987)

What is Sustainability?
Environmental
Social - Environmental Environmental Mgt
Environmental - Economic
Environmental justice Pollution Prevention
Eco-efficiency
Environmental refugees Environmental accounting
Inter-generational equity Ecological tax reform

Sustainability
Social Economic
Standard of Living Profit
Education R&D
Community

Economic - Social
Business ethics
Fair trade
Human rights
(Source: United Nations Environmental Programme, 2007)
What is Sustainable Development?

Growing Singapore in a way which -

• Is Efficient: we develop with less resources and waste
• Is Clean: we develop without polluting our environment
• Is Green: we develop while preserving greenery, waterways
and our natural heritage

(Source: Ministry of National Development, Singapore)

Sustainable Architecture
“Green and sustainable architecture refers to a building that is designed and constructed to
minimise impact on the environment and ensures that the building is resource-efficient
(materials, energy, water, space) in its operation and maintenance.”

“With greater awareness among the masses of the environmental degradation caused by man’s
actions, there is a need to ensure that the development of public housing in Singapore does not
cause further damage to the environment. To this end, the Housing and Development Board
“capitalizes on green technologies and innovations to optimize energy conservation, water
management and waste management” in developing Singapore’s housing estates.”

(Source: Housing & Development Board. Green housing book: HDB's approach to sustainable
development. Singapore: Housing & Development Board, 2007. Preface.”)
 Dr Anthony Yeong
Anthony Yeong Project Management Services
Email: anthony@anthonyyeong.com
View publication stats