This adjustment in attitude is a function of policy and public education. And these tools can also be applied in the context of public housing.
First, a new flat classification by land pricing is now in place to curb buyers from speculative practices and social stratification. The New Flat Classification Framework (Standard, Plus, Prime) comes with additional subsidies and restrictions, such as subsidy clawbacks and a longer minimum occupation period, that aim to keep HDB flats in more attractive locations affordable, fair, and inclusive.
Second, real estate advertisements that provide misleading information, promise unrealistic resale prices, or selectively highlight outlier transactions should be actively and decisively tackled by the authority. This acts to rein in misinformation and misrepresentation of the market.
Third, it pays to moderate expectations and prepare buyers for possible income fluctuations in the years ahead. Singapore’s major global partners, such as the US, have retreated to a more protectionist frontier. It helps that buyers appreciates how tectonic geopolitical changes may impact their financial resilience.
Last, buyers need to remember the potential downsides of overextending financially. Drawing lessons from past market cycles can encourage a more grounded approach, and help buyers weigh the risks of stretching mortgages, which may lead to lifestyle constraints or financial stress in the long run.
The high proportion of home owners is unique to Singapore. This remarkable achievement is a result of our calibrated approach to public housing.
HDB estates are microcosms of our multicultural society and are designed with the principles of stability, security and inclusion in mind. While it is crucial that residential real estate remains healthy, it is even more important that it is sustainable and inclusive.
Dr Leong Chan-Hoong is Head of Social Cohesion Research Programme at the S Rajaratnam School of International Studies (RSIS), Nanyang Technological University.
