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Firsthand Takes On: Housing is a new series by Mothership, diving into the topic of housing in Singapore with in-depth articles and videos.
We’ll explore the uniquely Singaporean housing system by experiencing it for ourselves, gathering expert opinions, and hearing the perspectives of young Singaporeans, to present the points of view that matter, firsthand.
This week, we discuss the difficult trade-offs young couples face when buying a house in Singapore for the first time.
We're known to have one of the best public housing systems in the world, so why does it still seem so hard to find homes we're happy with?
Having applied for a five-room flat in Tampines in Aug. 2022, our writer watched the application rate for first-timers climb from about 10 applicants for each flat to 18.5.
She kinda expected to fail, but was admittedly still disappointed with the result; she ended up not even getting a queue number with her "balloted queue position far exceeding the flat supply".
This was in August last year.
Things are likely to improve this year.
As of end-March 2023, the Housing Development Board (HDB) had delivered about 63 per cent of the delayed BTO projects.
She also knows that more support will be given to first-timer families under 40 (and those with children) in the upcoming months.
According to SingStat, about 88.9 per cent of Singaporeans live in HDB flats as of 2021, and home ownership continues to be supported by “significant subsidies” applied to flats for new owners.
Singapore is supposed to have one of the best public housing systems in the world, with one of the highest home ownership rates despite an expensive housing market, according to a July 2020 Bloomberg article.
So, why does it seem like young people are still unhappy with Singapore's public housing?
Three main considerations - Good, Fast, Cheap
Based on our observations, it seems like there are three main considerations most young couples grapple with when buying a house – that is: "good, cheap, and fast".
Although we'd love to have all three, realistically, most of us can only settle for two.
For example, we can buy a resale flat in a good location, and it would be relatively fast compared to applying for a BTO, but it will not be cheap.
What are some considerations in opting for the different combinations?
While there are government schemes that try to help people get housing that hits the trifecta of good, cheap, and fast, this can't happen all the time – so perhaps it is time to rethink how we, as young Singaporeans, can view public housing in Singapore today.
Watch this video to find out more:
Top image via Mothership