The PSP’s Affordability Housing Scheme (AHS) is actually not an original idea but one that is adapted from the past.
In the early years of HDB from 1968 to 1987, the flat price was priced based on construction costs, National Development Minister Desmond Lee said. The PSP’s AHS uses a similar idea.
“In a way, PSP’s idea is not an original idea, but an idea adapted from the past,” Mr Lee said.
We have long since moved away from the system where HDB flat prices were based on construction costs.
In fact, the HDB no longer price flats to recover land and construction costs. Instead, as Mr said, they assess the market value of the flat and apply significant discounts to make them affordable for Singaporeans across different income levels.
Additionally, means-testing is conducted to provide explicit grants – on top of the market discounts – further ensuring that HDB flats remain affordable to a broad spectrum of incomes.
Mr Lee said, “Since the 70s, we have matured and progressed as a society. We have improved upon our initial policies. We have developed our strong social compact, where Singaporeans, have affordable housing, have a tangible stake in this country, and form strong communities.”
PSP’s AHS is a major change from the social compact that we have had all these decades, Mr Lee said.
The PSP want to go backwards, to the time where housing was just a shelter and an expense, and not a store of value and assurance for retirement.
PSP’s housing scheme is one where Singaporeans did not have a stake – where they leave, they just return keys and move on.
Is this really the kind of Singapore we want to have?
Mr Lee said, “We have come a long way since 1979. We will continue to look forward instead, to ensure that our policies remain relevant, effective in providing public housing as affordable, accessible, and inclusive for Singaporeans.”
