Jamus goes on house visits.
1 hr ·
This week,
#TeamSengkang were able to wrap up house visits at 330B
#Anchorvale, after which we hiked briefly across the road to begin at the upper floors of 336B.
A few of the conversations touched on the cost of living. But in addition to complaints about rising prices of food and transport, one resident spoke about his concern over escalating long-term costs, in particular over housing. He expressed his fear that his children would no longer be able to afford to own their own flat, given how much new build-to-order units cost, even with the subsidy from HDB.
I shared my thoughts on how housing and retirement are a complicated dance. On one hand, the easiest way to cap rising housing costs is to rapidly expand supply. Now, with adequate planning, this may well be possible—I don’t buy into the myth that there is limited land, given how we have been very adept at high-density estate planning—but if supply were to expand too quickly, this might lead to a collapse in resale prices, which would in turn impact the retirement adequacy of the current generation of savers, who have generally relied on their CPF to finance their mortgages.
Personally, I would rather see most Singaporeans disentangle their retirement savings from their housing arrangements. But this is tricky, given how so many folks still see housing as one of the few ways to extract money from their CPF, and those lost starting a family might not have sufficient disposable income to otherwise pay for a mortgage. And many Singaporeans remain enamored with homeownership, even when this may result in overinvestment in housing (one quick way to check: since most of us don’t expect to inherit the houses we live in, it follows that we should plan to pass on with as little years left on our leasehold homes as possible. If we wish to leave any bequest to our kids, our savings would be better invested in genuinely appreciating assets, like stocks or bonds).
That’s why a wider array of housing options are important. These include developing a high-quality public rentals market, offering flexible medium-term leasehold options for larger-format flats, or offering a universal lease buyback scheme. These ideas, along with others previously suggested by the
#workersparty in a policy paper we released in 2019—may play a role in helping make house prices more affordable for younger Singaporeans as they enter the housing market.
#makingyourvotecount