Public housing policies in Singapore have been highly successful in enabling home ownership for the majority of Singaporeans and in giving citizens a stake in the country. The provision of affordable public housing is perhaps the clearest manifestation of Singapore’s “growth with equity” story. But the social contract that has enabled this is now coming under stress. In recent years, house prices have risen at a much faster rate than median or average incomes. Most agree the explanation may lie in part with wider economic and policy factors — rapid economic growth, more liberal immigration policies and low interest rates. One response would be a combination of well-timed policy interventions. On the demand side, this involves prudential or anti-speculative measures aimed at cooling the property market. On the supply side, the Government will release more residential land and ramp up the development of public housing flats. While these policy interventions are useful, a more fundamental rethink of public housing policies is also necessary.... Continue Reading