Maintaining housing values under the condition of universal home ownership

Abstract

Singapore provides analysts with the opportunity to examine possible systemic consequences of universal home ownership, which it has achieved through the sale of public housing. One important systemic problem is the need to preserve and/or enhance prices of older existing flats. This article examines the various strategies used by the Singapore government to solve the problem, especially when resale used flats are more expensive than the new, subsidized flats purchased directly from the state provider. It further examines the limits of each of the strategies in view of changing social and economic circumstances as Singapore enters the state of a mature capitalist economy and society burdened with structural unemployment and declining birth rates. The effectiveness of managing these issues will affect the legitimacy of the ruling government.