On Tuesday (21 Jan), Prime Minister (PM) Lawrence Wong reassured Singaporeans that public housing will remain affordable.
Speaking at a dialogue session at the National University of Singapore (NUS), PM Wong, who is also the Finance Minister, addressed concerns about rising housing costs and how the government plans to tackle them, as reported by Channel News Asia (CNA).
He said that the Housing and Development Board (HDB) will continue to price new Build-to-Order (BTO) “in relation to income, not in relation to the resale market”.
HDB housing affordable
At the dialogue, PM Wong admitted that resale prices have gone up due to Covid-19-related disruptions to housing supply. In 2024, resale flat prices increased by 9.6%, which was almost double than in 2023.
To address this, the government is ramping up construction of public housing.
“We are doing all we can on the property side,” he said, noting that these efforts will help stabilise prices in the long run.
About 19,600 BTO flats will be launched in 2025, to meet the rising demand.
Among that, nearly 20 per cent will have a shorter waiting time of under three years.
Through government land sales, the supply of private housing is also increasing, as the public and private markets are closely linked. However, PM Wong said these measures will “take time” to show results.
In response to the moderator’s question about the Singapore Dream and how PM Wong plans to meet the aspirations of today’s youth, he acknowledged the concerns raised by recent headlines about million-dollar HDB flats.
He noted that these high prices, especially when compared to past decades, have sparked anxiety over affordability.
Most notably, a flat in Margaret Drive was reportedly sold for a record S$1.73 million.
However, PM Wong pointed out that more than 80% of first-time BTO buyers are able to pay for their homes using only their CPF, with little or no cash involved.
“Back in the 1960s to 1980s, flats were cheaper, but people had to fork out a bigger chunk of their take-home pay,” he explained.
Also read: National Day Rally: Singles to also get BTO priority access to live with or near parents
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Featured image adapted from Housing & Development Board and Lawrence Wong on Facebook.
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