OUTREACH & CONSULTATION ONPUBLIC HOUSING IN PRIME LOCATIONS

A summary of Singaporeans' views & ideas

The new housing model seeks toensure that public housing inprime locations continues toreflect the openness and diversityof our society, and is affordable,accessible and inclusive.

In November 2020, MND launched a publicconsultation on plans tobuild public housing inprime locations, like in thecity centre and GreaterSouthern Waterfront.

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shared their views & ideas viadialogues, focus group discussions,online surveys and emails.

For over 10 months - between Nov 2020 and Sep 2021 - more than 7,500 Singaporeans

[The engagements are] a greatplatform. Please do continue to hostsuch discussion groups for other issues.Based on today's experience, it seemsmany Singaporeans are willing toparticipate and share!

- Potential homebuyer, 34

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This included first-time homebuyers, young couples, students & undergraduates,existing homeowners, seniors, industryexperts, commentators, academics &researchers, professionals, sociologists, and members of the public.

It’s always important to considermany viewpoints before embarkingon an initiative that could potentiallyimpact a lot of people.

- HR executive, 33

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said that the Government shouldintroduce new policy conditionsand that it would be fair to do so.

A majority of Singaporeans

They felt that such new policyconditions should help toensure affordability both at thepoint of purchase and at resale,which will foster inclusiveness.

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Other attributes that Singaporeansshared were having many amenitiesand scenic views.

Good transport links and being near thecentral business district were among the topcited attributes of housing in prime locations.

How I define central issomewhere that will takeme, maybe 15 minutes bypublic transport to get totown, CBD or Orchard.

- Potential buyer, 27

A majority said imposing a longer MinimumOccupation Period (MOP) would better ensurethat buyers of these new flats in prime locationswere people who genuinely wanted to live therefor the long term.

They also said a longer MOP may help make theflats more affordable.

A longer MOP will dampen the speculativefervour, engender stronger bonding withproperty and the community. Transiencedoes not build strong communities.

- Urban planning professional

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[On longer MOP] So first of all, you will wean outthe people who just want to make a quick buckversus those who really want to stay there.

- Potential homebuyer

A longer MOP signals owner-occupation intent, andencourages families to stay in estates longer and builda family. Social attachment to an estate cannot bepurchased or sold and it is important to develop this.

- Real estate academic

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Others felt that offering shorter leases ordesigning smaller flats could help Singaporeansbetter afford flats in prime locations.

[Subsidy recovery is] to account forhigher subsidies given… to me it’s notlosing out on anything, because it’s justgiving back what is given to you.

- Potential buyer, 41

The Government giving additionalsubsidies, above the current housingsubsidies (i.e. grants), to keep theprime flats affordable; and

Many were supportive of:

Recovering these additional subsidies whenthe flats are resold to ensure fairness withother typical BTO flat owners who would notreceive this additional subsidy.

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It is important to ensure equity whenexecuting this policy, that these housingremains affordable across generations... [the Government can] clawback on subsidiesfrom their sale of housing in prime locations.

- Undergraduate

They should be prepared to pay a higherprice for a home in a premium location.

On the other hand, some felt thatbuyers of prime flats should not getadditional subsidies, as it would notbe fair to others.

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Prohibiting resale and [only allowing]buyback to HDB will create an unhealthyprecedence... and there may be furtherpressures to implement this across moreestates as a form of price control.

- Undergraduate, 21

I’m not okay with [selling to theGovernment] because the Government

usually buys the house at a lower rate, Imean that’s what I heard… I don’t think

you will get any capital gain.

- Potential buyer, 38

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Some suggested implementing a capital gains tax orchannelling resale proceeds to the CPF SpecialAccount, to reduce windfall profits upon resale.

Some respondents preferred that theGovernment buy back these flats, andnot allow home owners to resell themon the open market to earn a windfall.But there were mixed views over whata fair pricing mechanism should be.

Others preferred the option of being able to sellthese flats on the resale market where pricescan be negotiated between buyer and seller.

[Ensuring flats are only for owneroccupation] encourages ageing-in-place,

building sustainable communities, andreinforces the fundamental mantra that HDB

flats are not for investment but to provideshelter for Singaporeans.

- Urban planning professional

Disallowing rental of the whole flat evenafter MOP;

A majority coalesced around the followingideas to try to keep prime public housingaccessible & affordable, even on resale:

Limiting who can buy these flats on theresale market; and

Removing housing priority schemes.

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[Preventing] the subletting orrenting of the entire home willreduce speculative demand andrestrict the activities that allow theflat to be monetised after MOP.

- Undergraduate, 21

Imposing an income ceilingon buyers of resale flats willrestrict the rise of prices.

- Real estate researcher

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There were many other views & suggestionswhich could not be summarised in this shortpresentation. We thank all Singaporeans for takingthe time to share your thoughts on the topic duringour public consultation & engagements.

We have taken your views into carefulconsideration in developing the future publichousing model in prime locations.

I’m encouraged that theGovernment is consulting thepublic on measures that willdirectly affect us. The discussiongroups were very well facilitated,with a good representation andwe had a variety of helpful views and proposed solutions. My takeaway is one of hope.

- Healthcare professional, 31

As of October 2021