Question : How has the development of Singaporean public housing influenced

economic dynamics and financial well-being over the past several decades?

"Imagine living in a city where housing is not just a place to live but a scarce resource
that directly shapes the economy. In Singapore, the evolution of public housing has not
only transformed the urban landscape but also played a pivotal role in driving economic
growth and ensuring the financial well-being of its citizens. Over the past several
decades, Singapore’s approach to public housing has woven together social stability,
wealth creation, and economic opportunity in a way that few other countries have
managed. But how has this scarcity of housing influenced broader economic dynamics?
Let's explore the impact of Singapore's public housing journey on its economy and its
people."

Slide 1 (Introduction)
Reason for the topic
- Living in Singapore (3-16 Years Old)
- Small Country
- High population density how is homelessness so low (1000 people out of 6 million)
- Compared to countries like Hong Kong where people are squeezed into tiny boxes
- How are they able to keep home ownership so high (90%)
Timeframe
- Chose 1960s and onwards (Where development rapidly grew)
- Has not been much progression in last decade
Title progression
- Knew I wanted to explore the development
- At first explored the social dynamics and cultural point of view
- Found economic and finance more intriguing (Study it at school)

Slide 2 (Overview)
80% of Singapore's population lives in public housing, with the majority of these homes being
owner-occupied. Most expensive house (4 Bedroom) sold for 1.6 Million SGD
Affordable
- Central Provident Fund (CPF), which allows citizens to use their savings to purchase
homes.
- The government provides various grants to help citizens with their purchases, such as
the Additional CPF Housing Grant (AHG) and the Special CPF Housing Grant (SHG).
- Cheapest flat 500,000 or even less
Wide Range of Flat Types
- Cater to different income levels and family sizes.
- 1-room to 5-room flats (from small apartments to larger ones for families)
- Executive flats (for larger households)
- Studio apartments for senior citizens
99 Year Lease System
 - Sold on a 99-year lease basis, which means the buyer effectively owns the flat for 99
years.
- At the end of the 99 years, the flat's lease will expire, and the ownership of the land and
flat reverts to the government.
- The system is designed to ensure land availability for future generations.
- It supports Singapore’s policy of sustainable land use, as land is scarce in the
city-state.
- Market Value declines when flat approaches lease
- Reinforces the philosophy that public housing in Singapore is for homeownership and
living in, not for speculative investment.
- It emphasizes that housing is a consumable asset rather than an eternal
wealth-generation tool.
- The lease system helps to keep public housing affordable. Unlike freehold properties,
the 99-year lease system ensures that flats remain affordable for future generations.

Slide 3 (Historical Context)

The development of public housing in Singapore must be understood within the historical
context of rapid urbanization post-Independence in 1965.
Pre-1965 Housing Crisis
- Before independence, Singapore faced a severe housing crisis. A rapidly growing
population and a lack of proper urban planning left many residents living in
overcrowded and unsanitary slums, especially in the central areas.
- The housing shortage worsened after World War II due to the destruction and neglect
of infrastructure.
- By the 1950s, the population had grown significantly, with one-third of the population
living in slums or makeshift squatter settlements.
- Singapore was seen as “one of the world’s worst slums” and a “disgrace to a
civilized community.”
Creation of the Housing and Development Board (HDB)
- The HDB was established in 1960 as a response to this crisis, tasked with building
affordable, high-quality housing for Singaporeans.
- The HDB replaced the ineffective Singapore Improvement Trust (SIT), which had
failed to resolve the housing problems.
- The HDB’s initial goal was ambitious: to build 50,000 flats in five years. By 1965, they
had built 54,000 units, marking the start of Singapore's public housing transformation.
- The HDB is crucial in Singapore’s public housing system. It designs, constructs, and
sells HDB flats, ensuring affordable living options and maintaining a high standard of
urban living for citizens.
Early Policies
- Government land acquisition: The government passed laws allowing the acquisition of
private land at low cost to support large-scale public housing projects.
- Mass public housing programs to relocate slum dwellers into modern, high-rise flats.
- Establishing self-sustaining townships, These towns had not just housing but also
schools, clinics, shops, and recreational areas.
Slide 4 (Policy Framework)
Singapore's robust housing policies and the role of the Housing and Development Board (HDB)
have been pivotal in shaping its public housing landscape. Understanding the balance between
public and private housing reveals insights into the country's economic dynamics.

Slide 5 (Government Housing Policies : HOS)

Singapore's government housing policies focus on providing affordable housing for its citizens.
Initiatives like the Home Ownership Scheme have led to high rates of homeownership,
significantly enhancing social stability and economic growth.
Home Ownership Scheme
- The HDB sells flats on a 99-year lease to Singaporean citizens at subsidized prices,
ensuring affordability for low- and middle-income families.
- Prices are often below market value to make housing accessible to a larger portion of
the population.

CPF
- Citizens are allowed to use their savings from the Central Provident Fund (CPF), a
mandatory national savings scheme, to finance the purchase of an HDB flat.
- This system makes homeownership affordable even for lower-income families by
tapping into retirement savings.
- Lower mortgages less risk on investment
Income Ceilings
- To ensure that public housing benefits those who need it most, the HOS imposes
income ceilings for different types of HDB flats.
- This ensures that only households below a certain income threshold are eligible for
new flats, preserving affordability for lower- and middle-income citizens.
Grants
- Grants from 40,000 to 80,000 SGD for low income families
- This overview covers the key aspects of Singapore’s Home Ownership Scheme,
emphasizing its central role in the country's development, affordability, and social
cohesion, making it a cornerstone of Singapore’s housing policy and nation-building
strategy.

Slide 6 (Economic Impacts)

Singapore's public housing plays a crucial role in driving economic growth and stability. It not
only contributes significantly to the GDP but also serves as a catalyst for job creation within the
construction sector.

Slide 7 (Contribution to GDP)

Public housing in Singapore significantly contributes to the national GDP, accounting for around
20% of economic activities. This sector fuels infrastructure development and stimulates various
associated industries such as construction, financing, and retail.
Construction and Real Estate
- The building of new HDB flats contributes significantly to the construction sector,
creating jobs and stimulating related industries such as engineering, architecture, and
building materials.
- Large-scale public housing projects drive demand for construction services,
increasing GDP growth in the real estate and infrastructure sectors.
Urban Planning and Development
- Public housing development integrates township planning, which boosts local
economic activities through new commercial, retail, and service centers within housing
estates.
- New estates create demand for urban infrastructure like roads, public transport, and
utilities, further driving GDP contributions.

Rental Markets

- The resale market for HDB flats is an important part of Singapore’s property ecosystem,
generating economic activity through transactions and associated services (legal, real
estate agents, valuation services).

Rental Income:

- The renting out of HDB flats contributes to economic activity in the real estate sector,
as homeowners and tenants engage in contractual agreements, maintenance, and
related services.

Job Creation

- The public housing program provides employment in various sectors, including

construction, urban planning, housing administration, and real estate services.
- These jobs support household incomes, leading to increased consumer spending and
thus contributing to GDP growth.

Slide 8 (Social Mobility and Asset Building)

Public housing has enabled low- and middle-income families to accumulate wealth through
property investment. Homeownership serves as a crucial asset, facilitating social mobility and
providing a pathway to financial security for future generations.

Property Investment

- Citizens have more assets, which builds wealth

Slide 10 (Sources I used)

Financial Articles JSTOR and Google Scholar

NLB Singapore : Wide database, Helped with history and archives and photos

Government Websites had accurate data (Biased)

Youtube Videos allowed me to learn interpreting data, Contrasting public housing between
different countries