Telegraph explains how SG’s public housing, modelled after UK system, found success

SINGAPORE: An article in the British newspaper The Telegraph earlier this week noted the irony that Singapore’s housing plan has been more successful than Britain’s — on which it was modelled.

While the vast majority of Singaporeans own their homes through public housing, the August 25 Telegraph piece underlined the shortage of state-subsidised housing and high property prices in the UK. It added that in a Demographia survey of 94 markets concerning housing affordability, Singapore came in 11th place, while London ranked 80th. It praised the Singapore government’s housing policy as “sensible”, as it not only addressed a severe housing crisis but allowed most Singaporeans to own their own home, or rather, lease them for 99 years.

Much of the credit for this goes to founding Prime Minister Lee Kuan Yew, who, in 1959, pointed to the failure of the British to build enough homes and promised to rectify the situation. The Housing and Development Board (HDB) was started the year after.

“Thousands of new homes were built inside tower blocks but, in a key difference to the British strategy, they were designed for the country’s growing middle class – not just to house the poorest residents,” the piece noted.

Singapore’s public housing success is also due to subsidised rents and mandatory contributions to the Central Provident Fund (CPF), which take care not only of retirement but also of housing, since they cover a homebuyer’s deposit and mortgage.

Moreover, the piece quotes Savills’ Alan Cheong as saying, “Over the years, HDB flats evolved from being just a simple roof over the head for resettled families, to assets having a strong investment appeal.”

By this, he was referring to the resale market, as HDB flats have appreciated in value by 44 per cent over the last ten years. In fact, 2024 was a record-breaking year, with more than 1,000 units getting sold for over S$1 million.

The piece also quotes the National University of Singapore’s emeritus professor Chua Beng Huat as saying that Singapore’s public housing plan will continue to be successful.

“I don’t see any serious issue emerging in the future – when it does, the system will find ways to patch it up. It is so entrenched as part of the nation that there is no possibility of developing a new operating system,” he said. /TISG

Read also: WP MP Louis Chua on Singapore’s public housing dilemma: Homes are expected to be both affordable and an investment