Though it was not addressed directly in the 2010 budget, many MPs have been expressing concerns about the cost of housing in Singapore.
There have been several calls to review Singapore’s housing policies, including the rules that permit private property owners to purchase HDB flats and sublet them.
It was also suggested that the $8,000 household income ceiling must be increased to allow more Singaporeans to purchase new subsidised flats from HDB.
The rising number of new immigrants in recent years has affected not only job vacancies in Singapore, but also the country’s transport system and the supply of public housing, according to MPs.
“By bringing in too many people too quickly…the cost of living has gone up rapidly. The clearest manifestation of this is the cost of HDB flats,” said Mr. Inderjit Singh (Ang Mo Kio GRC).
He noted that although PRs cannot purchase new flats, they still have an indirect affect on housing prices. This is because demand by PRs in the resale market can drive up prices, and the prices of new HDB flats is affecting the resale market.