Citizenship caveat?

THE solution to the public housing conundrum is not to build more new HDB flats for sale because the problem lies in the resale market.

The resale market is where Singaporeans must compete with permanent residents (PRs) for a place to live.
Rental housing also sees the same competition, even though there are not enough rental flats to meet the needs of all deserving citizens.

The shortage of rental flats has its history in the HDB's decision to cut back on the building of two-room flats because they did not sell or rent well.

All new flats since then were constructed for sale only. The ratio of flats for sale and those built for rent became more skewed in favour of new sales so much so that upon the influx of PRs, there were not enough for them to rent.

The decision to allow PRs to buy public flats in the open market was because there was no other way to accommodate the new immigrants.

If there was a huge supply of HDB flats of various types for rent for all, including low-income Singaporeans, prices of HDB flats would have stabilised and not have caused consternation to the public housing authority.
These new immigrants could stay in such rented HDB flats until such time when they decide to take up full Singapore citizenship; only then would they be allowed to buy an HDB flat.

Becoming a citizen, therefore, would earn them the right to purchase an HDB flat. The gesture would also demonstrate these immigrants' loyalty which, previously, was just speculation rather than reality.

If building executive condominiums and build-to-order flats are the Government's only way of fighting rising costs in public housing, our children will have to wait for us to pass on before they can inherit a roof over their heads.


Source, Straits Times 20 January 2010