SINGAPORE’S RESIDENTIAL LEASEHOLD HOUSING POLICIES AND THEIR IMPLICATIONS ON WEALTH DISTRIBUTION

Abstract

This paper aims to explore the implications of the differences in Singapore’s private and public residential leasehold policies on wealth distribution. To do so, the paper first illustrates how the government has taken consistent measures to build a stable and sustainable property market through a price index tracking the movements of public and private non-landed 99-year leasehold properties. Given that stability has been achieved through timely government intervention, it is important to identify other factors that may destabilise the market and cause unequal distributions in wealth. A comparative study is then carried out with the help of a residential leasehold framework, which systematically compares the ownership, property rights, management and maintenance, financing, and disposal, to determine the fundamental differences in the leasehold policies of private and public housing. It was found that the current policies in management and maintenance, as well as financing, can help to promote homeownership, meet the aspirations of HDB upgraders, and continue to promote a stable and sustainable property market. However, it was also found that the differences in ownership and disposal may lead to inequitable wealth distribution and destabilisation of the market where the private homeowners enjoy much greater gains than owners of public housing. Thus, the paper concludes with the need to explore ways to tackle this policy gap in order to maintain a stable and sustainable market and to achieve more equitable outcomes in wealth distribution across private and public leasehold property