Learn From Thy Neighbour: Singapore Boasts 90% Home Ownership

According to Census 2011, 86 per cent Indians own a home. Impressive, right? Wait till we break it down further. Of the total homes, only 3.50 per cent are concrete homes. Homes built using and burnt brick form the majority of the share. On the other hand, only 37 per cent of homes are 1BHK units. It would now appear that we have long way to go before India is able to provide standard housing options to all.

While we are at it, we may take lessons from outside. Singapore, for instance, has a lot to teach us. One could always argue that the challenges India faces in providing housing to its huge populations are much bigger than anything seen by Singapore. But, the Lion City can still teach us a lot. In 1980, home ownership rate in Singapore stood at 58.8 per cent. But, by 2016, it reached 90.60 per cent.

How did it manage to cover the distance?

Home owners in Singapore are not owners but lessees. Homes are bought for a 99-year lease term. At the end of this term, the value of the house becomes zero, and the unit goes back to the state. However, residents have the option to buy their homes again after this period.

The Housing Development Board or HDB oversees all such leases. Over 80 per cent of Singaporeans live in HDB homes and 90 per cent of these have bought these homes. All HDB homes are self-sufficient.

Between 1960-65, the HDB built over 54,000 units while the private developers could only build 2,500 units. The deficit was of over one lakh homes. Dedicated funds and the power to resettle squatters helped the HDB address the shortage within schedule.

Not everyone needs to live in the same kind of homes. There are provisions for all income groups.

The rates are also standardised. A two-room accommodation in a non-mature towns or estate would cost $2,500. A similar one in an established town will cost $6,000, while a bigger configuration in a developing location will also be priced at $6,000. For those who are looking at premium 3 and 4 room accommodations, the prices stand at $12,000 and $18,000, respectively.

Homebuyers could also choose for any of the new HDB flats under the various criterias including the Multi-Generation Priority Scheme, the Married Child Priority Scheme, the Third-Child Priority Scheme, the Tenants Priority Scheme, the Parenthood Priority Scheme, the Assistance Scheme for Second-Timers, the Senior Priority Scheme, etc.

What about resale? Yes, home owners are allowed to sell their homes. The HDB does not regulate these prices, although the selling price has to be disclosed. There is also a minimum lock-in period prior to which these homes cannot be sold.

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