SINGAPORE — During a parliamentary session on Monday (Feb 6), Workers’ Party MP Jamus Lim addressed the rising concern over housing affordability in S
SINGAPORE — During a parliamentary session on Monday (Feb 6), Workers’ Party MP Jamus Lim addressed the rising concern over housing affordability in Singapore. He argued that property prices have reached unsustainable levels. “Newspaper reports highlighting record highs in property prices and rents across various districts emphasize that housing is becoming increasingly unaffordable,” he noted.
Lim pointed out that the 30 per cent spike in private rental rates in 2022 is a cause for concern. He emphasized that while most Singaporeans are not renters, the increase in rental prices inevitably drives up property prices, creating a self-reinforcing cycle that leads to even higher home costs.
“With our recent experience of high inflation, it’s no surprise that housing prices have also reached new heights,” said the Sengkang GRC MP, stressing that even elderly residents who own their homes are now worried about whether their children and grandchildren will be able to afford homes in the future.
Assoc Prof Lim also highlighted the issue of rising home prices and their connection to Central Provident Fund (CPF) savings, as many HDB homeowners rely on their CPF to finance their mortgages. He explained that rising home prices push the government to provide higher grants, which in turn drives up prices further, creating a never-ending cycle.
“If someone manages to sell their flat before its value inevitably drops, they can retire comfortably. However, the one left with the burden is another Singaporean—a buyer who needed more space and couldn’t afford to wait for a Build-To-Order (BTO) flat,” Lim added.
He called for a broader range of housing options to suit Singaporeans at different life stages and careers. Lim proposed a “reboot” of house prices, acknowledging that such a move could temporarily disrupt both public and private housing markets. However, he suggested that a gradual transition would allow economic growth and wages to catch up, making higher prices more justifiable.
Concluding on a personal note, Assoc Prof Lim shared that he had been a renter for over ten years and felt just as connected to his community as a homeowner. He advocated for the same opportunity for all Singaporeans, particularly those who are struggling to afford homes in an increasingly expensive market.
The full speech can be viewed here. /TISG
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