PM Lee: Housing Prices Will Continue to Reflect the Value of a Good Living Environment

SINGAPORE — Prime Minister Lee Hsien Loong has reiterated that housing prices in Singapore will continue to reflect the country’s commitment to providing a good living environment for its residents. Speaking at the groundbreaking ceremony for the Chong Pang City integrated development project in Yishun on Sunday (March 26), PM Lee emphasized that the government is dedicated to ensuring that HDB flats remain both a safe family haven and a valuable retirement asset for Singaporeans.

PM Lee assured Singaporeans that the government is committed to continuously upgrading public housing estates with modern facilities, while progressively redeveloping older estates. He highlighted that no matter the neighborhood, residents can enjoy high-quality amenities such as schools, hawker centers, leisure facilities, and a comprehensive transportation network that makes travel convenient across the island.

The issue of rising housing prices has been a point of concern, especially following the COVID-19 pandemic, which caused resale prices to spike as work on new Build-To-Order (BTO) developments slowed. While the increased value of HDB flats is seen by some as a positive indicator of their long-term investment potential, others worry about housing affordability for the middle class, despite government subsidies.

Responding to past criticism, PM Lee reminded citizens that HDB flats are an appreciating asset and that their value is closely tied to Singapore’s economic performance. As long as Singapore continues to prosper, he noted, flats will maintain or increase in value, offering residents financial security in retirement.

This view echoes sentiments from past leaders, including PM Lee’s father, founding Prime Minister Lee Kuan Yew, who emphasized that the government’s housing policy was designed to provide Singaporeans with valuable assets. While concerns over the eventual expiry of HDB leases persist, the government has introduced schemes such as the Voluntary Early Redevelopment Scheme (Vers), giving homeowners of older flats the option to sell back their remaining lease to the government.

While the details of compensation under Vers are yet to be fully outlined, PM Lee explained that it would be less generous than the Selective En Bloc Redevelopment Scheme (Sers) due to the diminished financial upside for the government in buying back 70-year-old flats. However, he affirmed that the government remains focused on keeping housing a valuable asset for all citizens.

PM Lee concluded by underscoring the fairness of the 99-year lease system, saying it balances the needs of homeowners and future generations. He emphasized that the government will continue to support initiatives to maintain the value of flats through home improvement programs and other redevelopment schemes.