Jan 2010 Issue: Are the 30something and over singles being forgotten in the HDB craze?

The recent months have seen the Singapore Government making repeated pleas to Singaporeans not to recklessly rush into buying HDB or Housing Development Board flats. The reassurances given are that there will be ample subsidized housing in the market, with promises to offer between 10,000 and 12,000 new flats every year over the next five years in order to meet the growing demand.

The assurances are much needed as many, especially young couples, have been lamenting the high prices and difficulties in getting a flat. To aid this group of first-time home owners, the Housing Development Board has also increased the number of flats put aside for them from 90 per cent to 95 per cent in Nov 2009.

All these come as a relief for many in the property stampede, but there is a group of Singaporeans who are being left out of the discussion and solutioning process: that is, unmarried people, or the singles.

According to the latest official statistics, more Singaporeans are not marrying or marrying at a later age, especially among the females. Over 40 per cent of Singaporean men aged 30 to 34 years were single, whilst 29.4 per cent of women in that age group are single. This compares with 33.3 per cent of single men and 21.6 per cent of single women in that age group in 1998. These numbers show a clear rise in the trend towards staying single or getting married later.

Since single people can currently only turn to private property or the HDB resale market, many of them feel that they are no better than a Permanent Resident (PR). So should singles be allowed to buy new subsidized HDB flats, which are comparatively more affordable that resale ones?

Since the 1980s and 90s, this has been a controversial topic amongst the citizens. In 1991 after much outcry, the Government liberalised housing rules, allowing singles to buy one- to three room resale flats in non-mature estates upon turning 35. Prior to that, a single had to own the flat jointly with another person.
According to a speech by Minister Mentor Lee Kuan Yew, all Singaporeans can expect the prices of HDB flats to keep rising as long as the economy continues to expand. Noting that home ownership “motivates Singaporeans to work hard and upgrade to better flats for a better quality of living”, Mr Lee said: “More important, Singaporeans know that the HDB flat gives them a tangible stake in worth. If Singapore prospers ... they share in the growth ... The HDB story reflects the social mobility in Singapore.”

The Housing Board will also keep building affordable homes 'so that each generation of Singaporeans will continue to have a stake in the nation', he added.

Critics say that this begs the question on whether single people are in fact part of this vision, and whether the government is able to fulfill its promise amongst the growing group of Singaporeans choosing to remain unmarried. The salience of this issue is compounded by the 45 per cent increase in resale HDB prices seen over the last three years. In November, a 4-room flat at Queenstown sold for $653,000, setting a record for price per sq ft ($674psf), and making headlines in the media.

With the recent 2 built-to-order (BTO) projects at Queenstown, SkyVille and SkyTerrace @ Dawson generating high demand being more than five times over-subscribed, it is clear that more upwardly mobile professionals will surely be keen to cash in on their central locations and lower prices. However, the single Singaporeans will be left out of these opportunities. The difference in price between resale and the BTO can be seen in the chart below.

Comparison between the BTO projects and the Surrounding Resale Prices