EFFECTS OF HDB AND CPF HOUSING POLICIES ON FIRST-TIMERS

Abstract

Owning a home has always been placed high in priority among Singaporeans. Even young couples who are intending to get married or are just married, are applying for a HDB flat. Besides, opting for a new flat, other alternatives like purchasing a resale flat or a private property are available to those who can afford it. However, in recent years, the ease of stepping into any of the above housing markets have been met with some barriers especially in terms of prices and the allocation of a flat. These barriers were partly the consequences of the HDB and CPF housing policies. The remedies taken by the government using the HDB and CPF housing policies can potentially shorten the waiting time of first-timers queuing for a new flat. Rising private property prices are curbed with restraints on the release of plots of land by the government. But since our focus here is only on the HDB and CPF housing policies, policies affecting the private property market will be ignored. The "overheated" resale market is cooled down with the policy revisions in April 1997. Rising new flat prices are contained with additional pricing factor included. The issue of affordability is also addressed. A completely new scheme – the CPF Housing Grant Scheme was introduced. Intergeneration inequity in subsidy will result and the success of the scheme is limited. The success will depend very much on individual preferences and conditions, and the co-existence of other policies affecting the first-timers. Besides the concern for young couples, the "sandwiched" class between affording a HDB flat and a private property, tenant households and singles are all being catered to, with some political objectives behind.