{"id":122982,"date":"2021-11-03T02:15:45","date_gmt":"2021-11-02T19:15:45","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mainstreaming-hdb-rental-may-reshape-social-norms-weaken-communities\/"},"modified":"2021-11-03T11:17:36","modified_gmt":"2021-11-03T04:17:36","slug":"mainstreaming-hdb-rental-may-reshape-social-norms-weaken-communities","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mainstreaming-hdb-rental-may-reshape-social-norms-weaken-communities\/","title":{"rendered":"Mainstreaming HDB rental may reshape social norms, weaken communities"},"content":{"rendered":"


\nCurrent policies are geared towards enabling home ownership;\u00a0Senior Minister of State for National Development Sim Ann said extending\u00a0public housing rentals to the\u00a0wider populace\u00a0will not be embarked on \u201cwithout deep consideration\u201d.
\nExpanding public housing rentals to the mainstream may alter social norms and weaken communities, reported Channel News Asia (CNA), citing Senior Minister of State for National Development Sim Ann.\u00a0
\nSim explained that mainstreaming rental would be a \u201csignificant departure\u201d from Singapore\u2019s current public housing policy and principles.
\n\u201cIt will reshape our social norms and could weaken our communities, because unlike home ownership, where people sink their roots, rentals are more transitory. This is not something we will embark on lightly without deep consideration,\u201d she said in Parliament on Tuesday (2 November) as quoted by CNA.
\nShe made the comments in response to MP Louis Chua\u2019s adjournment motion, in which he urged the government to significantly raise the stock of rental units for all flat sizes as well as create an \u201cexpanded public rental scheme\u201d for the wider population.
\nRelated article:\u00a0Singapore Property Rental: A Guide for Tenants and Landlords
\nIn his adjournment motion, Chua called for a greater diversity of housing options, but cited the \u201csevere shortage\u201d of Housing and Development Board (HDB) rental flats as a key problem.
\nHe shared that 1.019 million HDB flats were sold in Singapore as of March this year, while the number of rental units stood at just 63,773.
\nThe rental flats are offered through three schemes \u2013 the Interim Rental Housing scheme, the Public Rental Scheme and the Parenthood Provisional Housing Scheme (PPHS).
\nChua noted that only about 1,600 rental flats are under construction, which are set to be completed progressively by about 2025.
\nHowever, current average waiting times for rental units have increased to five months. As such, MPs have received requests for help with appeals for such units.
\nHe added that supply for PPHS units also remains tight, even as the government plans to add another 800 such units.
\nIn fact, 544 applications were filed for the 60 available PPHS units last month, \u201cindicating excess latent demand that cannot be met\u201d.
\nChua suggested subsidising and expanding the public rental scheme to support the diverse needs of the wider population, particularly the millennials who face limited living options.
\nHe noted that an expanded public rental scheme would also help remove the stigma attached to HDB rental housing.
\n\u201cRenting an HDB flat need not and should not be seen as a sign that you are poor and needy, and our position on rentals need to reflect that,\u201d he said, adding that it is a misconception that home ownership is superior to home renting.
\nGermany and Switzerland, for instance, have home ownership rates of only 44% and 38%, respectively, but are among those with the highest gross domestic product per capita as well as Human Development Index scores globally, said Chua.
\n\u201cThe correlation between home ownership and the level of prosperity of a country may not be as clear cut. Home ownership is thus more of a preference than a superior option,\u201d he said as quoted by CNA.\u00a0
\nChua proposed allowing private developers to partner with the Housing Board to come up with Build-to-Rent (BTR) models.\u00a0
\nHe also suggested setting up a real estate investment trust (REIT) that would hold the stock of HDB rental units.
\n\u201cThis would also have the additional benefit of supporting the financing of the construction of new rental flats and is self-sustaining, reducing the cash costs on the part of the Government,\u201d said Chua.\u00a0
\nIn her reply to Chua, Sim underscored the benefits of home ownership, like developing \u201ca sense of rootedness and a concrete stake in Singapore\u2019s progress\u201d.
\n\u201cBeyond being homes, HDB flats are also valuable assets that can be monetised to supplement their owners\u2019 income during their retirement years,\u201d she said. \u201cMore remarkably around 85% of our low-income households own their homes.\u201d
\nRelated article:\u00a0Guide to Upgrading from an HDB Rental Flat to Owning an HDB Flat
\nOn expanding rental offerings, Sim said renting cultures of other countries reflect different social circumstances. Moreover, without public housing subsidies which support home ownership, some will find themselves renting for many years or even for life.
\nOn renting out flats at subsidised rates, Sim explained that this represents \u201ca change in the nature of our public housing policy and is something we would need to consider very carefully, for reasons of principle as well as practicality\u201d.
\n\u201cWe see the provision of a subsidised rental option as a means towards achieving home ownership, because we believe in the benefits that home ownership brings to Singaporeans,\u201d she said.
\nIn concluding her speech, Sim assured that home ownership will continue to be a key housing strategy of Singapore.
\n\u201cBeyond just a roof over our heads, home ownership has provided Singaporeans with a sense of stability, security and belonging, and has given us a strong stake in our country\u2019s progress,\u201d she said.\u00a0
\n\u201cGiven our limited fiscal space, we will continue to prioritise our resources to support Singaporeans in achieving their home ownership aspirations \u2013 that is, homes owned by Singaporeans, and not by private investors through REITS.\u201d
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg.\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Mainstreaming HDB rental may reshape social norms, weaken communities<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Current policies are geared towards enabling home ownership;\u00a0Senior Minister of State for National Development Sim...<\/p>\n","protected":false},"author":1,"featured_media":122983,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-122982","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/11\/HDB-flats-in-Ghim-Moh.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vZA","jetpack-related-posts":[{"id":102480,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/demand-for-apartment-rentals-surges-unexpectedly-as-home-sales-slump\/","url_meta":{"origin":122982,"position":0},"title":"Demand for apartment rentals surges unexpectedly as home sales slump","date":"December 22, 2018","format":false,"excerpt":"\r Analysts say the rental sector could come out a big winner in 2019 as home sales weaken further amid rising mortgage rates.\r \r Source : cnbc.com\r Read more...Demand for apartment rentals surges unexpectedly as home sales slump","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10510,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/demand-drops-for-abu-dhabi-high-end-rentals-as-budgets-fall\/","url_meta":{"origin":122982,"position":1},"title":"Demand drops for Abu Dhabi high-end rentals as budgets fall","date":"April 11, 2016","format":false,"excerpt":"\r \r Abu Dhabi's rental market is showing signs of fragmentation as softer demand for higher-priced areas contrasts with a shortage of more affordable homes.According to Cluttons, cuts to housing allowances offered by companies in the emirate means there is a much smaller pool of potential tenants for high-end properties,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":128607,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/government-tax-u-turn-landlords-allowed-breaks-back-for-long-term-rentals\/","url_meta":{"origin":122982,"position":2},"title":"Government tax U-turn: Landlords allowed breaks back for long-term rentals","date":"August 12, 2022","format":false,"excerpt":"\r The Government has done a U-turn on rental housing policy settings, backing down on axing landlords' tax breaks. 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