In Singapore, priced-out young singles rail at the PAP over property policies: ‘they’re so unaware’
- Some 2 in 3 Singaporeans in their 20s report having to contend with the city state’s red-hot rental market due to insufficient savings
- Growing anxieties over property strike at a pillar of government policy, and it’s turning some young people away from the ruling People’s Action Party
The pain is trickling down to young singles like Sonam who are largely shut out of the nation’s subsidised housing programme and starting to question the government’s resolve to tackle the problem.
“We’re all moving out in our early ‘20s and now there’s this: ‘oh, just go back home’” to your parents, Sonam said from Bangkok, declining to give her last name for fear of losing her job. “The fact that they’re so unaware of what is really happening to millennials and what we need to be able to survive in Singapore – it’s just bizarre to me.”
“To have such steep increases for foreigners certainly point towards the ruling party starting to build its narrative” for the vote, said Nydia Ngiow, a managing director at BowerGroupAsia, a policy advisory firm. “This adds to the speculation that the elections could be held earlier than 2025.”
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“In Singapore, the prime minister has to be a real estate agent,” he said. “So I’m learning and brushing up my skills.”
Growing anxieties over property strike at a pillar of government policy dating back to the 1960s that has buoyed six decades of PAP rule: the provision of subsidised housing to about 80 per cent of the population, giving Singapore one of the highest home ownership rates in the world. While the Housing & Development Board programme has won plaudits around the globe, its eligibility rules generally favour married couples over young singles like Sonam.
The Ministry of National Development said there was a significant surge in applications for subsidised housing, and that it’s taken steps to update policies “to better meet” the diverse aspirations and needs of its population.
“We are making good progress towards getting the HDB building programme back on track,” the ministry said in response to queries, adding that it’s overseeing almost 100 projects island-wide to meet the growing demand.
While the rental increases have affected expats more acutely since they are less likely to own homes, a survey last year showed that two in three Singaporeans between the ages of 22 to 29 are choosing to rent due to insufficient savings.
Belle, a Singaporean content creator renting a shared flat, would like to see a cap on rent increases. She too is considering voting for an opposition party after previously supporting the PAP.
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“We all know that Singapore is a very comfortable, reliable country to live in,” said Belle, 28, who didn’t want her last name to be used. “But it is just a little sad that it doesn’t seem like the government’s really changing its course and there are no safeguards to managing the rental increases.”
Singapore’s subsidised housing programme provides some refuge from the soaring prices. The median price of an HDB resale unit is just S$539,000 (US$404,000), compared with S$1.48 million for a private apartment, according to Cushman and Wakefield Plc.
Though popular, public flats have strict eligibility criteria. Singaporean families and married couples generally qualify for a new HDB flat from age 21, while singles generally aren’t eligible until they hit 35. That rules out buyers like Sonam, though young singles can tap into the resale market. Gay couples do not get the same benefits as those in recognised marriages.
While there’s little indication the PAP would lose power in an election, the party is sensitive to popular sentiments on bread-and-butter issues. Even a marginally poorer showing would be seen as a sign of weakness for a government that’s relied on unassailable support at the polls.
“The PAP still have a lot to do in terms of assuring Singaporeans that Singapore remains a very good place to live, work and to raise a family – and that the Singapore dream is still very much alive,” said Eugene Tan, a political analyst and law professor at Singapore Management University.
Sonam, the tech worker, would like to see the government lower the HDB age requirement for singles. A Workers’ Party lawmaker last year proposed dropping it to 28.
The housing market may soon cool as new units come online, with almost 40,000 public and private completions due this year alone.
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Prices in the private market are expected to rise about 2 per cent to 3 per cent in 2024, only slightly higher than the pre-pandemic rate of 1.3 per cent, said Wong Xian Yang, Cushman & Wakefield’s head of research for Singapore and Southeast Asia.
Even with the latest stamp duty increase, Sonam remains unconvinced.
“It still doesn’t take away the lack of housing,” she said. “It still doesn’t take away that our only option now is to buy a shoebox at a crazy price or rent.”