Monday, December 31, 2012

Forum letter - Let public housing policy return to basics

The following is a letter published in The Straits Times on 31 Dec 2012. It echoes my thoughts about the public housing situation in Singapore.

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IT IS not enough to suggest that developers should observe the intent and spirit of the executive condominium (EC) housing scheme.

If developers play by the rules to maximise profit for shareholders, then they cannot be faulted.

The real problem lies with the rules and the overall public housing policy, which is supposed to be about providing affordable public housing to the masses. Over the years, the original intent and spirit of our public housing policy has been adulterated by variousinitiatives such as ECs, the Design, Build and Sell Scheme, the privatisation of HUDC flats, the Selective En bloc Redevelopment Scheme and so on, that have not only raised the prices of HDB flats but those of private properties as well.

It is time for a total review of our public housing policy and a revamp that will take it back to its original intent, particularly in the light of our growing income distribution gap.

I suggest a return to the single-mindedness of affordable public housing and the building of better Build-To-Order flats.

The income ceiling could be raised to include those who can qualify only for ECs.

It should not be the Government's business to help HDB owners speculate in the open market.

In fact, one-, two- and three-room HDB flats should be made very affordable and be non-transferable, with a sell-back scheme to HDB for the balance lease. These flats should have a shorter loan repayment period of 15 to 20 years.

As family sizes are getting smaller, this could address the essential housing needs of the lower income group for life.

If their financial situation improves, they can then choose to upgrade to a bigger flat or private housing.

This scheme will ensure better moderation of prices at the top, and will also serve as a fallback plan for the less well-off or those wishing to downgrade.

Yeow Hwee Ming

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