How Singapore Solved Housing

Summary

Singapore’s public housing system is a revolutionary model that defies global norms. With 80% of its population living in high-quality, affordable government apartments, the Housing and Development Board (HDB) has successfully eliminated housing stigmas and created communities where people from all income levels coexist. Key to this success are policies such as social savings funds and land acquisition laws, which ensure affordability and satisfaction. Despite its success, the system’s reliance on a strong, technocratic state and controversial ethnic quotas makes it difficult to replicate elsewhere. The video explores these unique features, offering valuable lessons for other nations.

Takeaways

• 😀 Public housing in most parts of the world is associated with poor quality, social stigma, and crime, but Singapore has transformed this image into one of high-quality, desirable living spaces.
• 😀 In Singapore, 80% of the population lives in public housing, and there is no stigma attached to it. Both rich and poor enjoy living in these well-designed flats.
• 😀 Singapore's public housing policies make housing affordable, high-quality, and plentiful, challenging the common notion that these three can’t coexist.
• 😀 The ratio of median house price to income is a flawed metric for assessing affordability in Singapore, as it ignores public housing policies, loans, subsidies, and national savings funds.
• 😀 Singapore’s 90% homeownership rate refers to flats owned by residents, but the true success lies in 90% of people being satisfied with their neighborhoods and housing.
• 😀 Singapore's public housing was initially introduced to address overcrowding and poor living conditions but evolved through the Singapore Improvement Trust (SIT) and later the Housing and Development Board (HDB).
• 😀 The government aggressively acquired land to solve the housing crisis, including the controversial ability to seize land and reclaim areas from the sea, eventually increasing government-owned land to 90%.
• 😀 Singapore’s public housing design features 'new towns' that are self-contained with schools, hospitals, malls, and MRT stations, making them highly livable and convenient.
• 😀 Void Decks in HDB flats serve as communal spaces for events like weddings, funerals, and voting, contributing to a sense of community among residents.
• 😀 The government’s savings plan for housing ensures that all workers contribute a portion of their income to a fund used to buy homes, removing the housing market from speculation and investment-driven price hikes.
• 😀 Singapore’s housing system is not just about providing shelter, but also about shaping society by promoting mixed-income communities and preventing ethnic segregation through strict quotas.
• 😀 While Singapore's public housing system has seen tremendous success, it also raises concerns about government control and potential political manipulation, particularly in light of its authoritarian structure.

Q & A

What are the common perceptions of public housing in most parts of the world?

In most parts of the world, public housing is often associated with uninspired, drab concrete buildings, low-income, crime-infested neighborhoods, or Soviet-era-style 'Urban Hell' complexes.

How is public housing in Singapore different from the general global perception?

In Singapore, public housing is high-quality and aesthetically diverse, with 80% of the population living in one million public apartments. Public housing in Singapore is enjoyed by both the rich and poor and carries no social stigma.

Why do standard affordability measures like the house price-to-income ratio not apply to Singapore's housing?

The house price-to-income ratio only accounts for privately-sold properties, which doesn't reflect the public housing model in Singapore. It also ignores factors like government subsidies, loans, and national savings funds that make public housing more affordable.

What is the actual success of Singapore's public housing system, despite its high homeownership rate?

Singapore's true achievement is its 90% flat, neighborhood, and estate satisfaction, while keeping public housing affordable for everyone, rather than just a high homeownership rate.

What were the early challenges Singapore faced with its public housing system?

Initially, Singapore faced severe overcrowding, poor living conditions in slums, and a lack of housing following World War II. Public housing started with emergency single-room units before evolving into larger, more comprehensive housing schemes.

How did the Singapore government acquire land for public housing in the 1960s?

The Singapore government passed laws like the Fire-Site Provision and the Land Acquisition Act, which allowed it to acquire land from squatters and even private landowners at below-market prices to build public housing.

What are the defining features of Singapore's 'new towns' and public housing estates?

Singapore's new towns are designed to self-contain large populations, with amenities like schools, grocery stores, hospitals, gyms, and malls. Public housing is integrated with MRT train stations, and the estates feature a checkerboard arrangement of tall and short buildings to promote community interaction.

How do Singapore's Void Decks contribute to community life?

Void Decks are communal spaces on the first floor of public housing blocks, used for events like weddings, funeral wakes, and polling stations, fostering a sense of community and social cohesion.

What role does the mandatory savings scheme play in Singapore's housing affordability?

Singaporeans are required to contribute a percentage of their wages to a social savings fund, which can be used for housing, ensuring that homeownership is based on financial capacity rather than speculative market forces.

What are the potential challenges with Singapore's public housing system, particularly with its ethnic quotas and subsidies for families?

While the system promotes social cohesion, ethnic quotas can make it harder for individuals to buy or sell property based on their ethnicity. Additionally, the system heavily favors married families with children, leading to a potential lack of flexibility for other groups.