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Housing Policies in Singapore

Author

Listed:
  • Phang, Sock-Yong

    (Asian Development Bank Institute)

  • Helble, Matthias

    (Asian Development Bank Institute)

Abstract
Singapore has developed a unique housing system, with three-quarters of its housing stock built by the Housing & Development Board (HDB) and homeownership financed through Central Provident Fund (CPF) savings. As a result, the country’s homeownership rate of 90% is one of the highest among market economies. At different stages of its economic development, the Government of Singapore was faced with a different set of housing problems. An integrated land–housing supply and financing framework was established in the 1960s to solve the severe housing shortage. By the 1990s, the challenge was that of renewing aging estates and creating a market for HDB transactions. Housing subsidies in the form of housing grants were also introduced. Recent challenges include curbing speculative and investment demand, as well as coping with increasing income inequalities and an aging population. These have brought about carefully crafted macroprudential policies, targeted housing grants, and schemes to help elderly households monetize their housing equity. This paper analyzes key pillars of the housing policy, specifically land acquisition, the HDB–CPF system, the role of markets, housing market interventions, the Ethnic Integration Policy, and the Lease Buyback Scheme. It concludes with lessons learned for other countries.

Suggested Citation

  • Phang, Sock-Yong & Helble, Matthias, 2016. "Housing Policies in Singapore," ADBI Working Papers 559, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0559
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    References listed on IDEAS

    as
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    Cited by:

    1. Gary John Rangel & Jason Wei Jian Ng, 2017. "Macroeconomic Drivers of Singapore Private Residential Prices: A Markov-Switching Approach," Capital Markets Review, Malaysian Finance Association, vol. 25(2), pages 15-31.
    2. Sorin-George Toma, 2019. "Learning From A Smart Asian State: Singapore," Manager Journal, Faculty of Business and Administration, University of Bucharest, vol. 30(1), pages 172-180, December.
    3. Charles Ka Yui LEUNG, 2022. "Housing and Macroeconomics," ISER Discussion Paper 1197, Institute of Social and Economic Research, Osaka University.
    4. Diao, Mi & Fan, Yi & Sing, Tien Foo, 2021. "Rational pricing responses of developers to supply shocks: Evidence from Singapore," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 802-815.
    5. Alexander Bisaro & Mark Bel & Jochen Hinkel & Sien Kok & Laurens M. Bouwer, 2020. "Leveraging public adaptation finance through urban land reclamation: cases from Germany, the Netherlands and the Maldives," Climatic Change, Springer, vol. 160(4), pages 671-689, June.
    6. Fathali Firoozi & Abolhassan Jalilvand & Donald Lien & Mikiko Oliver, 2020. "The Impact of Population Aging on Housing Prices: A Comparative Study of Singapore and the U.S," International Real Estate Review, Global Social Science Institute, vol. 23(4), pages 467-482.

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    More about this item

    Keywords

    Singapore; housing policies; homeownership; targeted housing grants;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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