Proposed Policies
Concrete policy changes that advocates for a better Singapore.
HDB gradually removes all land costs from its pricing
Public hospitals and schools do not have land costs as they are recognized for its important public value. HDB land costs account for 40% of each flat. The rising price of housing is not transparent, with Minister Desmond Lee consistently avoiding release of district level data.
Why This Matters
We need to uphold our founding father Lee Kuan Yew's vision of each generation paying for itself. Land costs for HDBs goes against this principle as it is a transfer mechanism - taking your CPF to be paid for by the next generation via HDB. This policy is due for a reset.
Land acquisition costs are not transparent from district to district and accounts for roughly 40% of the price of flats. HDB paid S$7.53 billion for state land in FY 2023/2024, which is passed on to Singaporeans. Without a proper breakdown of land costs, the HDB system effectively controls how much of your CPF retirement money is used to be returned to the reserves.
HDB flats form 75-90% of net worth for the bottom 50% of Singaporeans. The lease value decay becomes more aggressive at the 50 year mark. Half of Singapore's HDBs will cross the 40 year mark in 2030. This is significant amount of net worth just depreciating away.
Land acquisition costs are not transparent from district to district and accounts for roughly 40% of the price of flats. HDB paid S$7.53 billion for state land in FY 2023/2024, which is passed on to Singaporeans. Without a proper breakdown of land costs, the HDB system effectively controls how much of your CPF retirement money is used to be returned to the reserves.
HDB flats form 75-90% of net worth for the bottom 50% of Singaporeans. The lease value decay becomes more aggressive at the 50 year mark. Half of Singapore's HDBs will cross the 40 year mark in 2030. This is significant amount of net worth just depreciating away.
Sources & Context
HDB has first rights to any resale purchase for 3 months
HDB will have the rights to purchase any flat listed for sale up to 90 days.
Why This Matters
This will be the start of unwinding the BTO lottery effect. The HDB is a system paid for by taxpayers - because it is a fundamental public good. It should not be used to generate massive profits.
Our social compact is eroded when Singaporeans use the taxpayer system to enjoy windfalls. It has been proven that larger and pricier flats grow at a faster pace and higher quantum, which widens inequality. In 2024, there were 1,035 flats that were resold for at least $1 million, marking an all-time high for such transactions.
The current system also rewards low-income young couples with cash-rich families to take full advantage of the maximum grants in buying larger flats, which worsens the problem of inequality.
Our social compact is eroded when Singaporeans use the taxpayer system to enjoy windfalls. It has been proven that larger and pricier flats grow at a faster pace and higher quantum, which widens inequality. In 2024, there were 1,035 flats that were resold for at least $1 million, marking an all-time high for such transactions.
The current system also rewards low-income young couples with cash-rich families to take full advantage of the maximum grants in buying larger flats, which worsens the problem of inequality.
Sources & Context
Cap the eligible purchase price of HDB BTOs to 4 times of annual income
In the 1990s, a 4-room BTO costs S$170,000, with an estimated S$150-200 psf cost.
Why This Matters
Taking into account inflation of building costs, the same 4-room BTO should be priced at S$290,000. In 2025 that average is S$480,000. The price of the cheapest four-room flats launched in October 2024 was 64 times the present-day median starting salary of a university graduate, while that of five-room flats was about 95 times a university graduate’s starting pay.
Based on HDB, the construction productivity has increased by more than 20% over the last 15 years using newer materials and pre-fab technology. If there were cost savings, where are they going to?
In 5 years, there will be nearly 500,000 flats over 40 years old. By 2040, more than half of Singapore's HDB flats will face problem in the resale market due to loan restrictions after the 50 year mark. This will render many Singaporeans dependent on the Lease Buyback Scheme for retirement adequacy.
Based on HDB, the construction productivity has increased by more than 20% over the last 15 years using newer materials and pre-fab technology. If there were cost savings, where are they going to?
In 5 years, there will be nearly 500,000 flats over 40 years old. By 2040, more than half of Singapore's HDB flats will face problem in the resale market due to loan restrictions after the 50 year mark. This will render many Singaporeans dependent on the Lease Buyback Scheme for retirement adequacy.
Sources & Context
Net 1.5M HDB flats by 2040, tear down flats that have reached 100 years
Weather damage, erosion and carbonation will render older flats structurally unsafe as they reach the end of lease.
Why This Matters
Under the Engineering code, our buildings are designed with reinforced concrete only for 100 years. Increased CO2 and climate change will increase carbonic acid corrosion in our buildings. Lease top-ups for old flats are not safe. They must be torn down and re-built.
The Future of Singapore Group estimates the cost of this to be about S$1.5 - 2 billion per year, which translates to S$150 - 200 billion over 100 years. This is affordable and sustainable when amortised over 100 years.
This rebuilding effort also increases the plot ratio and by extension increases the national reserves. The proposals in the Future of Singapore Group focuses on 3D planning instead of land use planning - whereby old HDBs and schools are abolished to achieve a holistic 3D urban landscape. This would see integrated compounds with HDBs and schools upstairs, civic and cultural functions downstairs.
The Future of Singapore Group estimates the cost of this to be about S$1.5 - 2 billion per year, which translates to S$150 - 200 billion over 100 years. This is affordable and sustainable when amortised over 100 years.
This rebuilding effort also increases the plot ratio and by extension increases the national reserves. The proposals in the Future of Singapore Group focuses on 3D planning instead of land use planning - whereby old HDBs and schools are abolished to achieve a holistic 3D urban landscape. This would see integrated compounds with HDBs and schools upstairs, civic and cultural functions downstairs.
Sources & Context
Set aside up to 10-15% of HDB for low-cost long-term rental
Low-income citizens need to prove that they are poor every 3 months in order to renew their rental. This encourages short-term thinking.
Why This Matters
Renters making S$800 or less in income will pay triple the rent if they cross into the next income bracket. This bracket incentivizes low-income Singaporeans to stay low-income.
Rental renewal is also valid only for 3 months. By making 5-10% of HDB for low-cost long-term rental, Singaporeans can plan more adequately over a longer period of time to uplift their situation.
The bottom 30% of Singaporean households with an average size of 3 persons earn $3000-3999 per month, inclusive of Employer CPF contributions and handouts. In 10 years, an estimate of 200,000 Singaporeans will live in absolute elderly poverty due to poor retirement planning.
Rental renewal is also valid only for 3 months. By making 5-10% of HDB for low-cost long-term rental, Singaporeans can plan more adequately over a longer period of time to uplift their situation.
The bottom 30% of Singaporean households with an average size of 3 persons earn $3000-3999 per month, inclusive of Employer CPF contributions and handouts. In 10 years, an estimate of 200,000 Singaporeans will live in absolute elderly poverty due to poor retirement planning.
MOP at 15 years with grants and MOP waiver for families with 3 or more children
The delay in BTO and key collection is framed as a supply problem. However, it truly is about fresh money entering the system too quickly and pushing BTO prices higher.
Why This Matters
Extending new BTOs to have a 15 year MOP would pace out the pricing effects onto the resale market. Based on Bala's table, this would result in an 8% decline of value relative to a same freehold property.
A 15 year MOP would put Singaporeans in a position to treat their HDBs more like a home than an asset to be flipped or rented out. The 15 year condition also requires significant upkeep if it was to be placed on the market for sale, which incentivizes home owners to care more for their property. In addition, announce BTO wait times from the month of application, not median month of flat selection.
By adding grants and a MOP waiver for families with 3 or more children, this would provide families with the support to plan out their financial situation to have more children while having a reasonably sized home.
A 15 year MOP would put Singaporeans in a position to treat their HDBs more like a home than an asset to be flipped or rented out. The 15 year condition also requires significant upkeep if it was to be placed on the market for sale, which incentivizes home owners to care more for their property. In addition, announce BTO wait times from the month of application, not median month of flat selection.
By adding grants and a MOP waiver for families with 3 or more children, this would provide families with the support to plan out their financial situation to have more children while having a reasonably sized home.