Special Issue: A Fifty-Year Retrospective on the Singapore Economy; Guest Editor: Linda Y. C Lim, University of MichiganNo Access

SINGAPORE'S HOUSING POLICIES: RESPONDING TO THE CHALLENGES OF ECONOMIC TRANSITIONS

SOCK-YONG PHANG

SOCK-YONG PHANG

Singapore Management University, 90 Stamford Road, Singapore 178903, Singapore

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https://doi.org/10.1142/S0217590815500368Cited by:16 (Source: Crossref)

Abstract

Singapore has developed its own unique state-driven housing system, with more than three quarters of its housing stock built by the Housing and Development Board and homeownership financed through Central Provident Fund savings. As a result, it has one of the highest homeownership rates amongst market economies. This paper provides a historical perspective of the main housing problems faced by successive prime ministers and their respective policy responses. Under the leadership of Prime Minister Lee Kuan Yew (1959–1990), the government established an integrated land-housing supply and housing finance framework to channel much needed resources into the housing sector to deal with a chronic housing shortage. Under Prime Minister Goh Chok Tong (1990–2004), asset enhancement schemes to renew aging estates as well as market deregulation measures were implemented. Prime Minister Lee Hsien Loong (2004–present) has been confronted with a different set of challenges — investment demand for housing, rising inequalities and rapidly aging population. These problems have brought about the introduction of carefully crafted macroprudential policies, targeted housing grants to assist low and middle income households, and schemes to help elderly households monetize their housing equity.

This paper draws from Phang (2007, 2013a, 2013b) as well as unpublished papers prepared for the World Bank in 2010, the Asian Development Bank in 2011, and the World Bank Institute and Korea Development Institute in 2013. In particular, I thank Dr Loic Chiquier of the World Bank for discussions on the problems encountered in countries where governments have adopted or adapted various components of Singapore's housing policies.

Keywords:

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