THE HDB RESALE POLICIES AND THEIR IMPACT ON THE POTENTIAL RESALE FLAT BUYERS

Abstract

The Housing Development Board (HDB), a statutory board set up in 1960 under the Ministry of National Development, is the Singapore's main public housing authority and provides for 86% of the population's housing needs. As a majority of the Singaporeans live in HDB flats, it is likely that policies aimed at promoting homeownerships and their revisions would have a significant impact on them. This study aims to examine the effects of each selected resale policies on potential HDB resale flat buyers and the combined effects of two policies implemented on different dates, on further enhancing resale flat buyers' financial capability. Furthermore, how the different information dissemination channels used to inform the HDB customers on its policies and their revisions vary in their level of usage and effectiveness will also be analyzed. A survey on potential HDB resale flat buyers was carried out at the HDB Resale Centre and the Inclusion of More Working Family Members policy was found to be most useful in providing financial assistance to the respondents. The CPF Housing Two-Tier Grant with the Inclusion of More Working Family Members policy, the Grant with the Reduced Repayment Scheme, and the CPF Housing Grant to Single Citizens with the Reduced Repayment Scheme was found to perform better in increasing buyers' affordability when they are considered to be operated together. In addition, News or Newspapers was found to be the most-referred to channel of information, while HDB counters at HDB Centre or Branch Offices was the most effective channel of information.