Lawrence Wong: Government will ensure public housing remains affordable for Singaporeans

SINGAPORE: Prime Minister Lawrence Wong has reiterated the government’s assurance to ensuring public housing remains affordable for Singaporeans.

Addressing 900 students at a dialogue themed “The Singapore Dream,” Wong emphasised that new Build-to-Order (BTO) flats will continue to be priced in relation to income levels.

“We are able, through heavy government subsidies, through what we do on the HDB side, to provide assurance to all of you, both now and in the future, that we will always keep public housing affordable for Singaporeans,” he said, as reported by state media CNA.

“The assurance to all of you is that HDB will continue to price the new flats in relation to income, not in relation to the resale market … to make sure that housing remains affordable,” Wong stated during the dialogue, which was jointly organised by the government’s feedback unit REACH and the student group Varsity Voices at the National University of Singapore (NUS).

Moderated by NUS vice-provost Leong Ching, the session provided a platform for students to raise their concerns about public housing, affordability, and broader societal aspirations.

Wong: Million-Dollar HDB Flats Represent “One Part of the Equation”

Acknowledging public concerns about rising property prices and reports of million-dollar HDB flats, Wong pointed out that these headlines only present “one part of the equation.”

He explained that rising incomes must also be considered when assessing affordability.

Wong noted that over 80 per cent of first-time flat buyers today can service their mortgages using their Central Provident Fund (CPF) savings without additional cash.

He contrasted this with the experience of earlier generations, who, despite lower flat prices, had to spend a larger portion of their take-home pay on mortgages.

Wong: Government Ramping Up Housing Supply to Stabilise Property Market

Highlighting the impact of supply disruptions caused by the COVID-19 pandemic, Wong assured that the government is doing its best to increase the housing supply.

“We are building as much as we can—not just public housing but also private housing through the government land sales programme. Both markets are interlinked, and these efforts will help stabilise the property market in due course,” he explained.

“We are doing all we can on the property side. The new flats are affordable. We will continue to review to make sure they continue to stay affordable,” said Wong.

“The supply that we are putting on to the market will eventually have an impact on stabilising the overall property market.”

According to HDB’s flash estimates released on 2 January, HDB resale flat prices rose by 9.6% in 2024, almost doubling the 4.9% increase recorded in 2023.

This comes despite the government’s continued assurance that public housing in Singapore remains both affordable and accessible to citizens.

HDB also highlighted that million-dollar flats accounted for only 2% of total resale transactions over the past 1½ years.

PM Wong on the Evolving ‘Singapore Dream’

When asked about the “Singapore Dream,” Wong reflected on its transformation over the decades. While the notion of the 5Cs—cash, car, credit card, condominium, and country club membership—dominated past aspirations, the contemporary dream now revolves around personal fulfilment and purpose.

Wong noted that the refreshed dream, as gleaned from the Forward Singapore exercise, focuses on pursuing one’s own path and achieving individual goals.

“I believe the refreshed Singapore Dream is one where we pursue our own path … and realise our aspirations and dreams,” he shared.

He cautioned against falling into the trap of comparing oneself with others, which can lead to frustration and an “endless rat race.”

Instead, he encouraged young people to embrace diverse abilities and strengths, allowing them to find meaning and purpose in their pursuits.

Responding to a student’s question on support for people with disabilities and special needs, Wong acknowledged gaps in post-education opportunities. He assured that the government is studying ways to improve pathways for these individuals to achieve meaningful and fulfilling lives.

The discussion also touched on geopolitical issues, including managing superpower relations and the potential return of Donald Trump to the US presidency.

Wong acknowledged the increasingly turbulent global environment but expressed confidence in Singapore’s ability to navigate these challenges.

Singapore’s bilateral relationship with the US remains “positive,” with cooperation in areas such as defence, security, and cybersecurity.

Wong highlighted the importance of maintaining neutrality and avoiding a scenario where countries are forced to pick sides.

On social issues such as same-sex marriage, Wong highlighted the government’s measured approach. He reiterated that the repeal of Section 377A in 2022 and amendments to protect the heterosexual definition of marriage reflect current societal norms.