SINGAPORE: Should Housing and Development Board flats be allowed to be used as an investment?
Over the last 60 years, he said generations of Singaporeans have experienced a huge upgrade in the quality of housing, and enjoyed significant wealth accumulation through ownership of HDB flats and private property.“Singaporeans want affordable and accessible housing, but they want housing to be ... their aspiration to wealth accumulation,” he said.
Pointing out that the current tax system favours housing investment, he said the government could consider reducing tax privileges for housing, or taxing housing capital gains. “The government sees no reason to prevent flat prices from appreciating in line with general economic conditions, because the benefits accrue to home owners but we consider volatile price fluctuations to be undesirable,” she said.
“As we plan our towns better, as the amenities and the conveniences of living in different parts of Singapore, I think the differences are going to narrow over time." Ms Sim pointed out that the paradox of wanting affordable and accessible housing but also using housing for wealth accumulation was not new, highlighting anxieties about housing prices and affordability dating back to 1996.