HOW SINGAPORE HAS EVOLVED INTO AN ASSET RICH SOCIETY

Abstract

This paper examines the development of the Singapore Housing System over the years. It also looks into the other countries' housing system to highlight the different repercussion that each system has on Singapore. It also examines the degree of success of the 'Home Ownership for the People' Scheme with respect to the public's wealth. The author did a survey to gather information on the wealth of the general public and the price of their accommodation. From this information the housing affordability index and ratio of housing price against annual household income are calculated. From the analyzed results, Singapore housing price has been above the benchmark set by the housing price ratio. However, the high housing price has not deterred the homeownership rate as can be seen from the affordability index. The CPF helps the population to finance their home but it defeats the purpose of the forced savings scheme implemented by the government. The bulk of the CPF contribution will be locked into property thus leaving the individual cash poor at their retirement age.