Worker' Party launched Youtube video on Public Housing

In a recent youtube video discussion, Louis, a member of parliament representing Singang GRC under the Workers' Party, delved into the pressing public housing issues facing Singapore. With over 80% of Singaporeans residing in Housing Development Board (HDB) flats, Louis emphasized that past successes in the public housing sector do not guarantee future stability.

He highlighted a growing dilemma for young Singaporeans, who are increasingly struggling to afford HDB flats amidst climbing prices. Recent statistics reveal that public housing prices have surged over 30% in the past three years, outpacing the 20% rise in the private residential market. This trend raises alarm bells, particularly for younger citizens hoping to enter the property market.

Louis pointed out that older Singaporeans rely on their HDB flats as key retirement assets and are concerned about potential depreciation due to the 99-year lease system. He warned that the current model of continuously appreciating prices is unsustainable and could lead to significant declines in property values. Many public housing estates constructed in the 1970s are nearing the end of their leases, raising legitimate fears about the future worth of these flats.

To tackle these pressing issues, Louis urged immediate action, referencing the Selective En bloc Redevelopment Scheme (SERS) as a viable solution. Under SERS, older estates identified for redevelopment can be sold back to the government at market value. However, Louis cautioned that compensation may decrease as properties age, leaving homeowners with limited options.

The disparity between older HDB flats and newer Build-To-Order (BTO) flats exacerbates the affordability crisis, as newer units are priced at a premium. According to Louis, if current trends persist, the value of some HDB flats could approach zero, leading residents to face challenging decisions about their housing options.

Jamus, another advocate in the discussion, provided historical context surrounding HDB housing. He noted that the primary goals upon HDB's inception were accessibility and affordability for Singaporeans. As public housing occupancy rose dramatically from 8.8% to over 80%, expectations for continuous appreciation in property values began to take root.

Since the government limited the SERS program in 2017, many homeowners find themselves without viable options for retirement income as their flats depreciate. Jamus underscored the need for a reassessment of current policies and hinted at alternative housing models that could better serve Singaporeans in the modern era.

To address the crisis, Louis and Jamus proposed several solutions. They advocate for a universal sale and leaseback scheme that positions HDB as a buyer of last resort, providing stability against value depreciation. Expanding the SERS program to cover a larger portion of existing stock is also essential, along with introducing varied lease durations to enhance affordability.

Additionally, they proposed expanding public rental schemes to include larger homes, catering to younger Singaporeans who may prefer renting over owning.

The overarching message from Louis and Jamus is the necessity for increased flexibility in the housing market. They encourage Singaporeans to engage with the Workers' Party's housing paper and participate in parliamentary debates to explore innovative housing strategies that can better meet the needs of the community.

As the public waits for solutions, the pivotal question remains: Are HDB flats truly affordable, and will their values continue to diminish?