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“But what about Singapore?” Lessons from the best public housing program in the world

SUBMITTED BY ABHAS JHA ON WED, 01/31/2018


singapore_contrast_lois_goh_world_bank.jpg


As we approach the 9th World Urban Forum in Kuala Lumpur next week, one of the essential challenges in implementing the New Urban Agenda that governments are struggling with is the provision at scale of high quality affordable housing, a key part of the Sustainable Development Goal (SDG) 11 of building sustainable cities and communities.

When I worked on affordable housing in Latin America, one consistent piece of advice we would give our clients was that it is not a good idea for governments to build and provide housing themselves. Instead, in the words of the famous (and sadly late) World Bank economist Steve Mayo, we should enable housing markets to work. Our clients would always respond by saying, “But what about Singapore?” And we would say the Singapore case is too sui generis and non-replicable.

[Learn more about the World Bank's participation in the World Urban Forum]

Now, having lived in the beautiful red-dot city state for two and half years, and seeing up close the experience of public housing in Singapore, one is struck by elements of the Singapore housing experience that are striking for its foresight and, yes, its replicability!

Singapore’s governing philosophy has famously been described as “think ahead, think again and think across.” Nowhere is this more apparent than how the founding fathers designed the national housing program, and how it has adapted and evolved over the years, responding to changed circumstances and needs.

It is hard to believe today but in 1947 the British Housing Committee reported that 72% of a total population of 938,000 of Singapore was living within the 80 square kilometers that made up the central city area. When Singapore attained self-government in 1959, only 9% of Singaporeans resided in public housing. Today, 80% of Singaporeans live a government built apartment. There are about one million Housing and Development Board (HDB) apartments, largely clustered in 23 self-contained new towns that extend around the city’s coastal core.

How has Singapore succeeded where so many other countries have failed dismally? At the risk of over-simplification, there seem to be four essential ingredients to this astonishing success story:
1. The importance of neighborhoods.

Recent research by the Stanford economist Raj Chetty and others have underlined what many urban professionals long suspected, that, in the quest for the design of inclusive and sustainable cities, the careful bottom-up design of neighborhoods matters a lot!

Poorly designed public housing in cities ranging from the infamous projects in the New York and the banlieues of Paris have resulted in creating poverty ghettoes that intensify and amplify inequalities and fuel social unrest. Many of these have had to be demolished.

Singapore got this fundamental fact right early on. Housing estates are carefully designed with mixed-income housing, each having access to high-quality public transport and education, and the famous Singapore hawker centers where all income classes and ethnicities meet, socialize, play, and dine together on delicious and affordable food. At least two such hawker stalls have a Michelin star!

The apartment blocks are designed to encourage the “kampong” (social cohesion) spirit with the “void decks” (vacant spaces on the ground levels of the HDB blocks) and common corridors (common linked spaces that provide access to individual units on the same floor) that foster interactions between neighbors.


2. The smart use of urban density.

From the very beginning, Singapore planners, constrained by the limited availability of land, chose to build up. As a result, this is one of the densest cities in the world. Yet it constantly scores amongst the highest in city livability rankings.

This has been done by carefully designing the height and proportion of buildings in relation to one another. Dr. Liu Thai Ker, the legendary Singaporean urban planner, compares this to a chess board where no two pieces are of the same height.

Buildings are also interspaced with high quality green open spaces. Since the very beginning, Prime Minister Lee Kwan Yew laid the highest emphasis on Singapore being a garden city.

3. An integrated approach to housingfrom planning and design, through land assembly and construction, to management and maintenance.

The Housing & Development Act (1960) gave the Housing and Development Board, as the apex housing agency, the lead role across the housing value chain. In most countries, access to land for affordable housing is a critical constraint. In Singapore in 1967, the Land Acquisition Act empowered the country to acquire land at low cost for public use.

Today, 90% of land is owned by the state as opposed to 49% in 1965. Great emphasis is placed on standardization and efficiencies in construction management.

For example, merit stars were awarded to contractors who performed consistently well—for every merit star earned, the contractor would enjoy a 0.5% bidding preference when tenders were evaluated. In 1982, a “Core Contractor Scheme” was introduced under which contractors with a minimum paid-up capital of S$500,000 and a minimum of five stars attained from the “Merit Star Scheme” are offered a guaranteed annual workload for a fixed number of years.

Mention the term “public housing” or “housing estate” and the vision that comes to mind is one of decrepit, poorly maintained ghettoes. Singapore housing estate are as far as you can get from this dystopian vision. They are immaculately maintained. In 1989, Town Councils were introduced to empower local elected representatives and residents to run their own estates. Today, there are 16 Town Councils managing the HDB housing estates in Singapore.

4. Long-term and strong political commitment.

Harvard economist Ed Glaeser once said that economics offers tactics not strategy, which means that politics must decide what level of support, say, public housing, will receive. Only then can economics advise the most efficient way to provide this support. The popular and political support for public housing in Singapore is strong and stable. And this has meant a high level of public subsidies to HDB (in 2017 this was S$1.19 billion).

Did I miss any essential element in the Singapore story? How replicable do you think this experience is to other countries? I would love to hear your views.
 
The land owners are entitled to decide what sort of tenure they wish to impose when developing the land they hold title to. The government has decided that 99 years is appropriate and Singaporeans had no issues when the agreement was signed. After enjoying a high standard of living for more than 4 decades they suddenly decide that 99 years is insufficient.

Private land owners are leasing their land out with 99 year titles too. If you owned land you'd opt to lease it rather than sell it as are many developers nowadays.
So who are the land owners in singkieland? the PAP?
 
Social policies of any government are political and housing, health and education are the most politically motivated services of any government.

Governments don't provide services because they love you like Jesus is supposed to. Services are packaged and presented to the electorate in order to buy votes in return.

The PAP's housing policy was embraced by the population because it is such a fantastic deal even at today's prices. If it was a flawed proposition nobody would bite.

Only in big government countries like ours are housing, healthcare and education used to buy votes. The involvement of these essential services by the government in small government countries like Switzerland, the US, Luxembourg, Australia, the Scandinavian countries...etc.. are very minimal and not used as political tools.

Housing policies in Sinkeepoo, unfortunately, whether they are flawed or perfect, are generally forced down throats.
 
Same case as my dad. Our attap hut in Telok Kurau was acquired by the government and we were OFFERED an HDB flat. My dad could have turned it down but it looked like a good deal so he signed on the dotted line. It was the best decision of his life.

Ur dad was given an option.Good deal n shouldnt complain. My old kamp was at Haji Salam. No such deal from garment.
 
Ur dad was given an option.Good deal n shouldnt complain. My old kamp was at Haji Salam. No such deal from garment.

Are you saying you were not allowed to turn down the offer?
 
Only in big government countries like ours are housing, healthcare and education used to buy votes. The involvement of these essential services by the government in small government countries like Switzerland, the US, Luxembourg, Australia, the Scandinavian countries...etc.. are very minimal and not used as political tools.

Housing policies in Sinkeepoo, unfortunately, whether they are flawed or perfect, are generally forced down throats.

The countries your mention have an abundance of land and the population can choose between city, urban and rural living. In Singapore land is a scarce resource and the government has no choice but to get involved in all aspects of housing.
 
Are you saying you were not allowed to turn down the offer?

Why r u surprise? My relatives kamp hse one at present Science Park. U go see for urself how big is science park. Another of my relative kamp at pasir panjang. Now occupied by rows n rows or pte houses no diff fm East Coast.

Btw r u sure those days we can turn down offer for resettlement cases? U mean to tell me those owners who used to stay at present estates like kaki bt, tampines, bedok can turn down garment offer for resettlement meh?
 
Last edited:
Why r u surprise? My relatives kamp hse one at present Science Park. U go see for urself how big is science park. Another of my relative kamp at pasir panjang. Now occupied by rows n rows or pte houses no diff fm East Coast.

Btw r u sure those days we can turn down offer for resettlement cases? U mean to tell me those owners who used to stay at present estates like kaki bt, tampines, bedok can turn down garment offer for resettlement meh?

Of course you can.
 
PAP now saying,,,,its ok to end HDB at 99 year lease,,,u die yr business

Commentary: Windfalls and bailouts should not be an expected part of the public housing equation
Let’s not depend on our flats receiving VERS in making prudent housing decisions, says Channel NewsAsia’s Bharati Jagdish.
image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==
HDB flats occupying the Singapore skyline (Photo: Jeremy Long)
image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==
By Bharati Jagdish

26 Aug 2018 06:21AM (Updated: 26 Aug 2018 06:30AM)
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SINGAPORE: Apprehensions over ageing HDB leases might have eased to some extent after Prime Minister Lee Hsien Loong’s National Day Rally speech.
Mr Lee did well to explain why HDB leases are limited to 99 years and cannot be indefinitely renewed, for the sake of future generations and for social and practical reasons.

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While understanding the reasons, Singaporeans can look forward to other options that could see older flats retain their value for a longer period.
The Home Improvement Programme (HIP) will be expanded to cover more flats, and the new HIP II scheme will give all HDB flats a second round of upgrading when they reach the 60 to 70-year mark.
Residents can also look to the possibility of the Voluntary Early Redevelopment Scheme (VERS).
CONSIDER THE UNKNOWNS

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However, while considering these and other options in the public housing ecosystem, Singaporeans would do well to manage their expectations and exercise prudence in their choices.
National Development Minister Lawrence Wong has already warned against playing up expectations that VERS will help prop up the resale market.
Clearly, there is a chance your precinct may not be selected for VERS and even if it is, the majority of residents could still very well vote against it.
READ: Strong political commitment to housing is precisely what younger Singaporeans need, a commentary


image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==
National Development Minister Lawrence Wong speaks to the media at a REACH forum on Tuesday (Aug 21).

Last year, Mr Wong’s reminder that HDB flats would be returned to the state at the end of their 99-year lease was accompanied by advice that buyers should not fork out large sums for old resale flats on the chance that they may profit from the Selective En-bloc Redevelopment Scheme (SERS).
Only 4 per cent of Singapore’s public housing stock had been selected for SERS since the scheme began in 1995, but many HDB dwellers seemed to believe that the majority of them would benefit from the scheme at some point.
While the recent moderation of HDB resale prices may have disappointed sellers, some analysts argue that the moderating effect on resale prices has been positive. After all, runaway prices created anxiety among current and future flat buyers and are unsustainable in the long run.
The possibility of VERS might have a stabilising effect on the resale market on the whole, but again let’s not forget the various unknowns.
For instance, the terms for VERS have yet to be worked out, but we have already been warned that they will be less generous than those of SERS.
Whatever the case, buyers need to see this scheme as a bonus rather than a given when making their purchasing decisions. Taking this stance has its advantages.
For instance, it could continue moderating the market, ensuring reasonable affordability for generations of Singaporeans.
Home buyers would also more likely make our housing decisions more prudently, and take fewer risky decisions that could ultimately impact our savings, including those under CPF that should provide for our retirement.
BEING COGNISANT OF THE TERMS
Many young flat owners think they would probably sell their flats and move to something bigger and better long before their 99-year lease runs out. Over the years, such aspirations and a focus on profits might have also prevented many from fully coming to terms with the finiteness of HDB leases.
READ: 99-year HDB leases a chance to review home ownership and retirement policies, a commentary


image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==
File photo of HDB flats in Singapore.

While the Prime Minister has assured Singaporeans that once the lease runs out, the Government “will help you to get another flat to live in”, he also said “whichever option you choose, you will have to pay for the lease”.
Mr Lee explained it is only fair “because you bought the original flat knowing when the lease would run out, and knowing that the flat would then have to be returned to HDB”.
However, in spite of this, there was clearly a belief in some quarters that the state would feel a duty to provide some form of compensation before, or at the end, of 99 years, whether through SERS or some other scheme.
Recent statements and discussions on this issue have hopefully driven home the message that we shouldn’t expect the Government to entirely bail us out of the housing decisions we made for ourselves.
READ: An over-emphasis on home ownership can come at a cost to society, a commentary

We must understand the terms from the outset, manage our expectations and in the process, be cognisant of what our choices ultimately mean for us and our families.
If we choose to buy a resale flat with only a few decades left on the lease, do we have plans to move somewhere else after and are we able to set aside money to finance this?
Or do we want our flat to be an inheritance that can be passed down to our children, despite the fact that its lease will run down eventually?
How would this then determine how much we are willing to pay for it at the outset?
THE OBJECTIVES OF PUBLIC HOUSING FOR US AND FUTURE GENERATIONS
While most of our HDB flats have gone up in price compared to when we first bought them, public housing is clearly is not an asset that will invariably grow in value no matter the conditions.

image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==
A block of flats in Singapore. (Photo: Marcus Mark Ramos)

The public housing system as a whole is designed to provide housing security for not just the current generation, but future generations of Singaporeans.
But a HDB flat is designed to house one generation at a time; hence the need for finite 99-year leases so that the land can be redeveloped after for the next generation who have to pay their share for their house.
National Development Minister Lawrence Wong has stressed the need to ensure that fiscal arrangements for VERS are sustainable. This will undoubtedly determine the terms offered to residents.
We might be about 20 years away from Singapore’s first VERS project but clearly any indication of how it will be ultimately rolled out will be of great interest to home owners and future buyers.
In determining the merits of current and future schemes, individuals need to step back and look at their flat as not just an asset, but a home.
In this equation, windfalls and bailouts should not and cannot be seen as a given.
Bharati Jagdish is the host of Channel NewsAsia Digital News' hard-hitting On The Record, a weekly interview with thought leaders across Singapore, and The Pulse, Channel NewsAsia’s weekly podcast that discusses the hottest issues of the week.

Read more at https://www.channelnewsasia.com/news/business/national-day-rally-housing-vers-en-bloc-hdb-10648052
 
“But what about Singapore?” Lessons from the best public housing program in the world

SUBMITTED BY ABHAS JHA ON WED, 01/31/2018


singapore_contrast_lois_goh_world_bank.jpg


As we approach the 9th World Urban Forum in Kuala Lumpur next week, one of the essential challenges in implementing the New Urban Agenda that governments are struggling with is the provision at scale of high quality affordable housing, a key part of the Sustainable Development Goal (SDG) 11 of building sustainable cities and communities.

When I worked on affordable housing in Latin America, one consistent piece of advice we would give our clients was that it is not a good idea for governments to build and provide housing themselves. Instead, in the words of the famous (and sadly late) World Bank economist Steve Mayo, we should enable housing markets to work. Our clients would always respond by saying, “But what about Singapore?” And we would say the Singapore case is too sui generis and non-replicable.

[Learn more about the World Bank's participation in the World Urban Forum]

Now, having lived in the beautiful red-dot city state for two and half years, and seeing up close the experience of public housing in Singapore, one is struck by elements of the Singapore housing experience that are striking for its foresight and, yes, its replicability!

Singapore’s governing philosophy has famously been described as “think ahead, think again and think across.” Nowhere is this more apparent than how the founding fathers designed the national housing program, and how it has adapted and evolved over the years, responding to changed circumstances and needs.

It is hard to believe today but in 1947 the British Housing Committee reported that 72% of a total population of 938,000 of Singapore was living within the 80 square kilometers that made up the central city area. When Singapore attained self-government in 1959, only 9% of Singaporeans resided in public housing. Today, 80% of Singaporeans live a government built apartment. There are about one million Housing and Development Board (HDB) apartments, largely clustered in 23 self-contained new towns that extend around the city’s coastal core.

How has Singapore succeeded where so many other countries have failed dismally? At the risk of over-simplification, there seem to be four essential ingredients to this astonishing success story:
1. The importance of neighborhoods.

Recent research by the Stanford economist Raj Chetty and others have underlined what many urban professionals long suspected, that, in the quest for the design of inclusive and sustainable cities, the careful bottom-up design of neighborhoods matters a lot!

Poorly designed public housing in cities ranging from the infamous projects in the New York and the banlieues of Paris have resulted in creating poverty ghettoes that intensify and amplify inequalities and fuel social unrest. Many of these have had to be demolished.

Singapore got this fundamental fact right early on. Housing estates are carefully designed with mixed-income housing, each having access to high-quality public transport and education, and the famous Singapore hawker centers where all income classes and ethnicities meet, socialize, play, and dine together on delicious and affordable food. At least two such hawker stalls have a Michelin star!

The apartment blocks are designed to encourage the “kampong” (social cohesion) spirit with the “void decks” (vacant spaces on the ground levels of the HDB blocks) and common corridors (common linked spaces that provide access to individual units on the same floor) that foster interactions between neighbors.


2. The smart use of urban density.

From the very beginning, Singapore planners, constrained by the limited availability of land, chose to build up. As a result, this is one of the densest cities in the world. Yet it constantly scores amongst the highest in city livability rankings.

This has been done by carefully designing the height and proportion of buildings in relation to one another. Dr. Liu Thai Ker, the legendary Singaporean urban planner, compares this to a chess board where no two pieces are of the same height.

Buildings are also interspaced with high quality green open spaces. Since the very beginning, Prime Minister Lee Kwan Yew laid the highest emphasis on Singapore being a garden city.

3. An integrated approach to housingfrom planning and design, through land assembly and construction, to management and maintenance.

The Housing & Development Act (1960) gave the Housing and Development Board, as the apex housing agency, the lead role across the housing value chain. In most countries, access to land for affordable housing is a critical constraint. In Singapore in 1967, the Land Acquisition Act empowered the country to acquire land at low cost for public use.

Today, 90% of land is owned by the state as opposed to 49% in 1965. Great emphasis is placed on standardization and efficiencies in construction management.

For example, merit stars were awarded to contractors who performed consistently well—for every merit star earned, the contractor would enjoy a 0.5% bidding preference when tenders were evaluated. In 1982, a “Core Contractor Scheme” was introduced under which contractors with a minimum paid-up capital of S$500,000 and a minimum of five stars attained from the “Merit Star Scheme” are offered a guaranteed annual workload for a fixed number of years.

Mention the term “public housing” or “housing estate” and the vision that comes to mind is one of decrepit, poorly maintained ghettoes. Singapore housing estate are as far as you can get from this dystopian vision. They are immaculately maintained. In 1989, Town Councils were introduced to empower local elected representatives and residents to run their own estates. Today, there are 16 Town Councils managing the HDB housing estates in Singapore.

4. Long-term and strong political commitment.

Harvard economist Ed Glaeser once said that economics offers tactics not strategy, which means that politics must decide what level of support, say, public housing, will receive. Only then can economics advise the most efficient way to provide this support. The popular and political support for public housing in Singapore is strong and stable. And this has meant a high level of public subsidies to HDB (in 2017 this was S$1.19 billion).

Did I miss any essential element in the Singapore story? How replicable do you think this experience is to other countries? I would love to hear your views.
This Lim guy is beginning to annoy me big time. While the PAP is working hard to make the lives of Singaporeans better he spends his time making armchair critic videos while offering zero solutions to any issue.
This Lim guy is beginning to annoy me big time. While the PAP is working hard to make the lives of Singaporeans better he spends his time making armchair critic videos while offering zero solutions to any issue.

"
He can start off by telling us what he intends to do with the 99 year lease terms should the oppo win the next election. Automatic extension for another 99 years for everyone who owns an HDB flat? 50 year extension? That would make a mockery of the laws of the land and severely penalise those who paid a premium for freehold properties.

And what about those private condos with a 99 year lease? Would he extend the lease for them too?

Listen to the video. He does nothing but criticise and berate the government. Any fool can do that.

He points out the issue ...it is not the job of critics to provide a solution. Let the millionaire ministars clean up their own shit.
 
"


He points out the issue ...it is not the job of critics to provide a solution. Let the millionaire ministars clean up their own shit.

The issues are all minor. No government is perfect but the overall the PAP is doing a fantastic job for Singapore and 70% agree with me.
 
The government has been fair and transparent with regards to the status of HDB flats. They promised that it would be an appreciating asset and they have honored their word. There is not a single Singaporean who bought a new flat from the HDB has lost money.

The resale market is a different kettle of fish altogether. Those dumb enough to pay $1,000,000 for a flat with only 50 years left on the lease can't possibly blame the government should the market turn against them. If they paid inflated prices without considering the downsides of the terms of sale that is their fault not the PAP's fault.

You buy at $500k, put in $100k for renovation ...can make money in 5 years?
 
The issues are all minor. No government is perfect but the overall the PAP is doing a fantastic job for Singapore and 70% agree with me.

I disagree that the PAP is doing a good job but let's leave it at that.
70 percent is a number that Pinky decided he wanted for the last election. With him controlling the Elections Department, he could choose any number for support, even 100 percent.
 
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