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Impacts 2025: Singapore: Public Housing is a strategic pillar to build a nation

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This content is an excerpt from Savills Impacts, a global report on real estate trends that will shape the market in 2025. It is curated and supplemented with local insights from Savills Viet Nam. 

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Singapore’s successful public housing system is the result of a comprehensive and consistent long-term strategy. At the centre of this achievement is the Government’s guiding role, a data-driven planning approach, sustainable financial support from the National Housing Fund, and a forward-thinking mindset that integrates technology and sustainability.  

THE STRATEGIC VISION FOR HOUSING DEVELOPMENT

From the beginning of its independence, only 9% of Singaporeans lived in government flats, while others yearned for a place to call home. Singapore adopted a holistic approach to housing development and, using data from the Housing and Development Board (HDB), recognised that many people were living in unhygienic slums and crowded squatter settlements.  

The HDB swiftly addressed the issue and, within three years of its creation, delivered 21,000 homes, increasing to 54,000 in the following two years. 

Building on this long-term vision, Singapore maintains a strong and consistent commitment to public housing. As immigration and housing demand continues to grow in recent years, the Government has announced plans to construct 50,000 public housing units annually between 2025 and 2027. This target highlights the commitment to ensuring equitable access to quality housing while safeguarding social stability, and supporting sustainable urban growth amid rapidly evolving demographic trends. 

Beyond achieving ambitious housing numbers, Singapore places a strong emphasis on urban planning and quality. The country consists of twenty-four towns and three estates. Each area is self-sufficient, with access to public transportation, retail outlets, schools, recreational facilities, and healthcare services. 

These estates were often developed near employment centres, initially manufacturing clusters. Modern HDB flats feature sleeker, condo-like finishings that offer a contemporary aesthetic and improved functionality, with laminated timber doors, steel entrance gates, larger tiles and improved sanitary fittings. 

Alan Cheong, Executive Director of Research and Consultancy, Savills Singapore
hdb flats have modern facilities

Modern HDB flats feature sleeker, condo-like finishings and each area is self-sufficient

THE HOUSING FUND AND FINANCIAL MECHANISMS     

One of the key factors contributing to the sustained supply of public housing in Singapore lies in the strategic use of the National Housing Fund. Rather than being sourced from taxes, this smart financial support tool is largely built from citizens’ mandatory savings through the Central Provident Fund (CPF). Both employees and employers contribute to the CPF, enabling individuals to use their savings to purchase homes, service mortgage loans, and cover related housing costs, subject to certain conditions.

Additionally, the Government provides direct subsidies to the Housing and Development Board (HDB) through the annual national budget, ensuring that the HDB can continue delivering high-quality, affordable housing. Currently, around 80% of Singaporeans live in HDB homes, which are priced in reference to the resale price of private homes, and offered with substantial discounts to ensure affordability. HDB operates on a non-profit basis, with a grant from the Ministry of Finance used to cover any annual deficit. 

THE GOVERNMENT’S AGILITY AND DETERMINATION

Despite the notable achievements of Singapore’s public housing system, the nation continues to face evolving challenges such as an ageing population, increasingly diverse household structures, and mounting pressure from rising property prices. What sets Singapore apart is its ability to adapt policies swiftly and effectively. 

The Government frequently conducts surveys to assess housing needs while analysing demographic and income data to design housing programmes that align with societal changes. Initiatives such as Build-To-Order (BTO), Sale of Balance Flats (SBF), and tailored support packages for first-time buyers, young families, and the elderly exemplify a people-centric, flexible policy approach. 

By analysing population demographic and income trends, the provision of public housing in Singapore has become a well-oiled machine. Thanks to the government’s encouragement of homeownership, public housing today serves not only as a shelter but also as a store of wealth for Singaporeans. For other governments to replicate this model, they must understand that success depends on political will, not just institutions.

Alan Cheong, Executive Director of Research and Consultancy, Savills SingaporeAlan Cheong, 

Learn more about the theme of adaptation and IMPACTS 2025 articles

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