A push for diverse housing options amidst rising property prices.
SINGAPORE — During a parliamentary session on Monday (Feb 6), Workers’ Party MP Jamus Lim addressed the issue of public housing, emphasizing that property prices in Singapore have escalated to alarming levels. “Recent reports highlighting record highs in property prices and rents across various districts underline the fact that housing has become unaffordable,” he stated.
He pointed out the “staggering” 30 percent increase in private rental rates in 2022, which he believes should raise concerns for all Singaporeans, not just renters. Lim explained that rising rental costs inevitably lead to increased housing prices, creating a cycle that is exacerbated by the recent surge in inflation. “Given our recent struggles with inflation, it is not surprising that house prices have also reached new heights,” he noted in his address.
The MP for Sengkang GRC shared that even elderly residents who own their homes are worried about the escalating costs of purchasing a flat in Singapore and are particularly anxious about whether their children and grandchildren will be able to afford housing in the future.
Assoc Prof Lim also highlighted that most HDB homeowners rely on their Central Provident Fund (CPF) savings to finance their mortgages, arguing that continuously rising home prices compel the government to provide larger grants to help people buy flats, which in turn further inflates prices in an ongoing, self-reinforcing cycle.
He warned, “If one is fortunate enough to sell their flat before its price collapses – which it inevitably must – they can retire comfortably. However, this leaves the next buyer, often a fellow Singaporean needing space for a growing family, in a difficult situation.”
Lim advocated for a broader range of housing options tailored to Singaporeans at different stages of their lives and careers. He called for a “reboot” of house prices while acknowledging that such a transition could disrupt both public and private housing markets.
“What is necessary is a gradual shift to this new normal, allowing economic growth and, crucially, income levels to catch up, making the higher prices justifiable,” he explained.
He concluded his speech with a personal note, sharing that he has been a renter for over ten years. “I felt connected to the communities where I lived and took pride in customizing my home’s interior to reflect my personality. I viewed it as a phase in life, and when I was ready for ownership, I made the transition. I believe we should offer this opportunity to all Singaporeans, especially those not in the lowest income brackets but who still find it challenging to afford rentals in a market that has become disconnected from affordability.”
