Primarily, the Housing and Development Board (HBD) is required to rationalize the problem with housing implications in the country. For this purpose, the “rational model” is to be used to identify the objectives, enlist alternatives and predict outcomes by optimization. To cater to the spikes that are seen in demand, a built-in supply is required that require affordable and quality homes, with standards that are continuously improved. Moreover, it is imperative that a comprehensive community is created with clear economic goals, and improving the policy-approach by the government by predicting such surges in advance.
In this regard, there have been approaches in 2001 where the Build to Order (BTO) program was amalgamated that looked at construction of sites until a quota was reached. Until 2012, the resale market and direct purchase sector was improved. It is necessary that the BTO prices do not rise and that the current property cycle be controlled. Potential problematic areas require bolstering the resale market. The loan-to value ratio are to be reduced before 75%, and a lower cash outlay plan can attract many new buyers and those who are looking to upgrade. The demand for HBD resale flats will be maintained by this method and will ensure that it does not decrease below sustainable levels.
It is necessary that HBD move away from the “flat-as-asset” mode as respondents in the 2013 poll expressed the desire for their homes to be treated less as assets. Measures ought to taken as part of the government’s agenda to pay attention to the asset-problem that the citizens face in Singapore. In line with the “Logic Model,” one can view an input of higher funds by the government, and processes that relate to treating homes more as a community consumption good. This will lead to an output of better appreciation rates by the community, and the system can improve the implications of asset-type housing schemes.
In view of the recently ageing population, it can be proposed to adjust to the newly proposed schemes that monetize old and new homes. These schemes are also aligned with CPF savings and are funded with the help of annual plans to improve the standard of retirement. The HBD can consider giving additional bonuses of S$30,000 or less to the ageing population to sell current apartments and buy new ones. With flexible lease schemes, the target population can lease smaller homes with different periods of 15-30 years, and rooms, flats can be sublet to visitors, and owners can earn more income. The population can also consider opening one room to online rentals for visitors and tourists in the area that can help monetize the flat.
With the current trends in the housing market, it is suggested that the government helps to create a thriving rental market. Due to the rising home prices, and mortgage changes, the advantage of renting a flat is the cheap and attractive prices. Moreover, the monthly price or owning a home has increase by over 10% in the recent years, while, rents have increased at a lower rate. However, a few disadvantages are linked to losing the opportunity to rent the flat, and underperform in terms of home equity that can impact wealth creation for the Singaporeans.
There are many benefits to promoting affordable housing schemes; one method is diversification that can be represented by supporting the incorporation of low-income households as well into rental policies by HDB. The barriers that are present in financial flows to housing schemes will also be overcome in this manner. With private sectors and non-profit businesses in the development sector, the prices of rentals can increase that can lead to many disadvantages to the current plan of action for the community that already contends asset-based schemes. While, Singapore still has a potential for there to be many players in the market due its accessible location for visitors, and locals who aim to find the best alternatives to housing schemes.