Singaporeans love to complain. They need their BTO quickly. And they want a big one. Even though it is a tiny island nation (719 sq km), Singapore has been able to build homes for 85% of its households. Large nations haven’t done this yet.

Singapore understood that these homes represented the largest stake its citizens had in the prosperity of the nation, in contrast to other governments that have concentrated public housing programmes on the most vulnerable members of society, frequently allowing the austere concrete blocks to deteriorate into urban slums.

Buying more than just a roof over your head

Here, public housing is more than just a roof over our heads. These homes come with amenities and convenience. Schools including popular schools like Raffles Girls’ School and Raffles Institution are located in housing estates within walking distance or a short bus ride. There are playgrounds for children, shopping malls and food centres for the families. Not to forget, beautiful parks where one can head to for a stroll, exercise or to relax, a recreational activity that costs nothing.  

Transportation links are excellent and shelter walkways are everywhere so that one can almost completely escape from the elements of sun and rain without the use of an umbrella. 

So when you buy a BTO, you are not just buying a roof over your head. You are also paying for the slew of amenities and convenience that you will also enjoy. You are buying a lifestyle, so to speak. This is why some BTOs enjoy higher resale prices than others if the amenities around them are superior to others. 

Maintaining homes in liveable condition despite age

Where in the world do you find public housing as well maintained as Singapore’s where the government has committed to upgrading entire precincts when the blocks of flats there are at the 30th and 60th year of its lifespan? 2 HIP (Home Improvement Programme) at 30-year intervals. This takes care of leaking pipes and spalling concrete among other things to ensure that your flat always remain in a liveable condition.  The cost of upgrading is highly subsidised by the government. 

Reclaimed land for housing is not cheap

About one quarter of Singapore today is reclaimed land. Reclaimed land does not come cheap. 

Between 1965 and 2015, the HDB reclaimed 3,869 hectares of land – roughly one third of the total reclaimed land on the island. 

A pilot project carried out by the HDB in 1963 reclaimed 48 acres in the Bedok area.

The East Coast Reclamation, dubbed the “Great Reclamation” added a 1,525-hectare tract along the southeastern coast of the island at a cost of $631 million. From this project sprung the entire Marine Parade estate and Katong. Together, they provide accommodation for an estimated 100,000 residents.  

To link the housing estates as well as the commercial centres in Siglap, Joo Chiat and Bedok to the city, a major arterial road, the East Coast Parkway, was constructed along the newly reclaimed coast. Parallel to the expressway, a linear park was built to provide recreational space for residents. Today, East Coast Park comprises 185 hectares of parkland and a scenic 15-km beach.

The reclamation of Kallang Basin saw 400 hectares of its swampland filled using earth taken from Toa Payoh. The site was used for public housing and industrial development. 

The HDB also reclaimed a stretch along Singapore’s west coast between 1976 and 1978 to create 89 hectares of land for the development of Clementi New Town. Along with it, the West Coast Highway was constructed to link Jurong with the eastern part of the island.

Several other reclamation projects included the addition of 44 hectares of land along the coast of Pasir Ris between 1979 and 1980, 277 hectares of swampland off Punggol between 1983 and 1986 as well as the reclamation of 685 hectares of foreshore and swampland along the northeast coast from Pasir Ris to Seletar between 1985 and 2001.

The reclamation of foreshore and swampland along the northeast coast included the reclamation of 155 hectares from the foreshore of Coney Island and Punggol. Much of the new land was reserved for public housing and recreational purposes.

Ever the champion grumbler

An oft heard complaint is that the HDB flat used to cost only a fraction of what it costs today. Grandma or mama bought hers for $40,000. Today, you have to pay $400,000. 

Well, grandma and mama used to pay 40cents for a bowl of wanton noodle too. Today, if you were to open a wanton stall, would you sell a bowl of the noodle for 40 cents? You won’t and for obvious reasons. So why would you expect prices in the 70s and 80s? 

The HDB flat has come a long way, both in terms of designs and amenities around it.

That said, rising prices have been a concern since the pandemic. The number of million-dollar transactions has been a source of consternation. 

Taming prices

To tame prices, the government announced a slew of cooling measures which take effect on 30 September.

Among them, there is now a 15-month wait-out period for private home owners buying HDB resale flats.

The maximum loan quantum limits for housing loans will also be tightened. This is in light of rising mortgage rate along with the US interest rates. It will ensure prudent borrowing and avoid future difficulties in loan servicing. 

Additionally, the loan-to-value (LTV) limit for HDB loans will be lowered from 85 per cent to 80 per cent. This will reduce the maximum amount of loan buyers can borrow from HDB. 

The move is unlikely to have a significant impact on first-time buyers though. This is because these buyers are eligible for housing grants, up to S$80,000 when buying a subsidised flat directly from HDB, or up to S$160,000 when buying a resale flat.

They can also tap on their CPF savings which will reduce the amount of loan they need to take.