singapore housing
/Housing and Real Estate Planning
Introduction
controlled democracy, PAP (People’s Action Party).
/GDP
3.38 million citizens, 0.53 million permanent residents and 1.63 million foreigners
$ 71,318
mixed economy
2014
581 + 138(reclaimed land = 719 sq km (2015)
$ 713
7600 persons per square kilometer.
pre independence
5.54 million (2015)
Stakeholders
Until Singapore’s independence, public housing was built by Singapore Improvement Trust (SIT). However, the British colonial government’s role in town planning and provision of rental housing and flats proved to be wholly inadequate.
PAP, made it a point to set up a government housing agency
Housing and Development Board (HDB) and was set up in 1960 to develop public housing and improve the quality of living environment of the people. Eligible to only /citizens and /Singapore Permanent Residents (SPRs). Criteria considered /citizenship /marital status and /household income
Land Acquisition Act, 1966 /act HDB held the power to acquire land for any public use
1960
/current scenario + success
44%
business
2015
/compensation 90%
=
money accommodation
**amount paid is equal to the market value at the time of acquisition (updated).
land ownership government public
HDB undertook detailed processes for record keeping, calculation of compensation, clearance processes, superiority of alternate accommodation, business premises, infrastructural facilities and lastly forward planning and coordination to ensure smooth resettlement.
/use of acquired land
Apart from housing, the government used the acquired land for development of industrial estates, educational institutions and other urban public amenities.
[Lee Kuan Yew.] “no private landowner should benefit from development which had taken place at public expense; and secondly, the price paid on the acquisition for public purposes should not be higher than what the land would have been worth had the Government not contemplated development generally in the area�
The HDB-CPF Housing Framework /cpf mechanism
C
home ownership, the rate shot up from 29% in 1970 to 88% in 1990.
Increment in housing stock by 50% each decade
The size of house was defined by their income
HDB offered loans which could be paid in the form of monthly mortgage payments which were lower than rental amounts.
n tio
un it
20 % employers
Applicants could mention their preferred zones and type of unit desired.
la pu po
17 % employees
HDB allocated flats and condominiums through a booking and wait list tool where priority was given to households affected by resettlement and on first come first serve basis.
/outcome
ho us in g
/introduction
HDB funds 80% of the unit’s price as a loan. repayment period of the loan is 25 years
Ethnic Integration Policy
Controlled Involvement of Private Sector and Market Mechanism private sector was welcomed and market mechanism was brought into play.
market transactions were restricted prior to 1971.
C
Post 3 year of residence market transaction was allowed
** buyer should satisfy the eligibility requirements for HDB..
housing shortage eased and home owners were keen to upgrade their housing
Lucrative housing sector
The basic idea was that wealthy property owners and investors are taxed and the receipts are used to subsidize homeownership of lower-income groups.
HDB intervened by implementing the Ethnic Integration Policy under which racial limits were set for the HDB blocks and neighborhoods for buying homes.
Chinese, 80%
Malay 22%
Indian/Others 10%
Land Lease System /introduction
/development control
After 99 year lease period expires, the capital investments were lost and the property held no value.
Government defined the /land use, /development intensity /time to project completion
deteriorate overtime
/allotment structure As the city of Singapore expanded, it was seen that older HDB estates had been built close to the Central Business District (CBD) whereas the newer estates were cropping up on the outskirts
99 years lease period households did not go ahead with housing improvements and the housing stock began to deteriorate overtime.
CBD Selective En bloc Redevelopment Scheme (SERS) upgrading programs to improve existing 1995 to 2014, 79 sites were redeveloped
younger families were being allocated newer units in these new estates by moving out of older HDB towns.
Lease Buyback Scheme Government intervenes with LBS
99 years lease
z
C
Due to strong government intervention, a typical household in Singapore has large fraction of its wealth invested in housing which is illiquid.
34 years
30 years
35 years
Lived
Lived on buyback
Bought by government
C
C Upon retirement, the household is
“asset rich cash poor“
One room subletting for steady income
Comparison Feature of Public Housing Land
Singapore
India
•Acquired by the government under Land Acquisition Act (1966) •Lease system
•The Urban Land (Ceiling and Regulation) Act of 1976 to remove zamindari system •Schemes like land pool in and redistribution, town planning and land acquisiton
Central government
Central (Ministry of Housing and Urban Poverty Alleviation) and State government
Housing and Development Board (HDB)
State Boards like Gujarat Housing Board (GHB), Bihar State Housing Board etc.
•The Central Provident Fund (CPF) •HDB loans channeled from government funds
•Central bodies like National Housing Bank, HUDCO etc. •State bodies like GRUH Finance •Schemes like VAMBAY, BSUP, IHSDP, ISHUP, PMAY etc.
Construction, infrastructure and up gradation
Centre, HDB
State, under schemes like VAMBAY, BSUP, IHSDP, ISHUP, PMAY etc.
Rental housing v/s home ownership
•Small proportion of HDB housing is rental (one and two room houses) for low income families •Maximum importance given to home ownership
•Maximum importance given to home ownership •National Urban Rental Housing Draft Policy passed in 2015 •Government of Maharashtra initiated Rental Housing Scheme (RHS), MMRDA has been chosen as the project implementation agency
Housing Responsibility Housing Board Finance
Issues /singapore
/india
/The mandatory nature of CPF results in over allocation of resources to housing which crowds out over consumption and leads to weak domestic startup sector
/In India the housing policy frame work is too complex and ambiguous.
/Deliberate policy bias towards home ownership. Social rental housing is the need of the hour especially due to increase on foreign population
/Overlaps between schemes due to competing political parties aiming for rubber stamp outcomes. /Policies solely concentrate on the lower income group and informal settlements. Middle Income groups are ignored.
/ Monjima Sen UP3313 / Abid Hira UP4213