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In every Singaporean’s life, there comes a time when housing becomes a key concern. For couples, it’s not uncommon for the question: “Do you want to BTO together?” to actually mean “Will you marry me?”
Even for those without a partner, moving out and having your own space is part of what it means to be an adult as well.
Yet, for many young adults, the dream of getting your BTO has never been more difficult.
Over dinner the other night, a friend of mine worried that his BTO flat at Tanjong Rhu might be too close to the expressway and that the noise would be a problem, only to be shut down by another friend who hadn’t even gotten his BTO despite multiple applications: “Got flat good enough liao, you don’t want it, give me la!”
But they’re not alone. From complaints about long waiting times to frustration about oversubscribed projects, young Singaporeans have been airing their dissatisfaction with the system. Rentals are a hot topic as well, with a 2024 survey by PropertyGuru finding that most tenants considered rental prices too high.
It’s no surprise, then, that housing has become a campaign issue for many parties in this election. The Workers’ Party and Progress Singapore Party have both suggested lowering the minimum age for singles to buy BTO flats, while the Singapore People’s Party has suggested setting the threshold to 30.
In addition, the SPP is calling for the expansion of the Selective En Bloc Redevelopment Scheme to more estates, and the PSP is pushing for Singaporeans to be able to buy new flats without having to account for the cost of the land.
Evidently, housing is a huge talking point for this election—but do these policies actually help solve the problem?
The two facets of Singapore’s housing crisis
Firstly, it’s clear that there are two different problems that Singaporeans are complaining about.
The first is that there aren’t enough BTO flats in Singapore.
Projects like Central Trio @ AMK were oversubscribed by 7.9 times, while projects in Bedok and Kallang-Whampoa were oversubscribed by 4.9 and 4.4 times, respectively.
These numbers indicate that there is already fierce competition for BTO flats, and crucially, they reveal the ratio of couples seeking flats compared to the number of flats available.
If projects can be oversubscribed by seven to eight times, with some projects even oversubscribed by 14 times, it is no surprise that Singaporeans are taking issue with the scarcity of BTO flats.
The second problem is the increasing number of single Singaporeans, who are also applying for BTOs and smaller flats.
These Singaporeans, however, can only apply for flats once they reach 35 years old, and even then, only for smaller flats.
Nevertheless, the increasing number of singles also means that the demand from this group of Singaporeans is not insignificant.
The two-room flexi flats that singles could apply for are also seeing massive oversubscription numbers, with projects at West BrickVille being 36 times oversubscribed and Tower Breeze being 29 times oversubscribed.
It’s no wonder that almost all policy proposals on housing centre on trying to alleviate the situation for singles, by allowing them to get flats at a younger age.
Yet, these policies also seem to be missing the forest for the trees. Trying to alleviate the high demand for the small number of flexi-flats is a good idea, but it should be viewed in the context of the larger market for flats in Singapore.
Not all flats are good flats
That being said, not all estates and BTO flats are equal. While there are oversubscribed projects, there are also undersubscribed projects that do not sell out because of their unpopularity.
Last October’s BTO exercise saw Taman Jurong Skyline in Jurong West being undersubscribed, due to its lack of MRT access.
Tengah is also another unpopular option, as the new estate lacked amenities.
What this means is that it’s not just purely a supply problem, but also somewhat a demand problem—namely that Singaporeans are picky about where they stay.
Consider then, what would happen when we lower the minimum age for singles to apply for a BTO flat. The demand for prime location flats, especially those in central locations and mature estates, will rise far more than the demand for flats in undersubscribed projects.
Are we really sure that that’s what we want for Singapore?
More people applying for the same number of houses means lower chances for everyone to get the flat that they want, and longer waiting times for applicants as they try again and again unsuccessfully.
Singles might get more chances at getting a flat, since they can start applying earlier, but this comes at the expense of families who are now competing with them for the same number of flats.
More applicants, more competition
By lowering the age at which singles can apply for BTO flats, we would basically be allowing for more people to apply for the same number of flats, when competition for the flats is already causing complaints and dissatisfaction.
Of course, that’s not to say that singles don’t deserve a flat, and that they should suck it up or keep renting indefinitely.
What I am saying is that simply lowering the eligibility requirements would likely heighten the competition for each flat, especially those in prime areas, and that this is not ideal.
Instead, what should be done is to redirect the demand for flats to non-prime areas. These areas are undersubscribed, which means that there are plenty of balance units to be sold. Each unit that remains unsold is potentially a flat that could be used to alleviate demand from the already oversubscribed projects in prime locations.
This is where the focus should be, rather than simply lowering the eligible age for singles to get flats.
Of course, that’s easier said than done. Singaporeans are picky, or they would have already chosen to apply for these projects. Young Singaporeans are used to having access to amenities like schools, public transport, and supermarkets.
These amenities are what mature estates have and non-mature estates do not. And while they do take time to build up, they are also essential to turning flats from being in ‘bad locations’ to being ‘good flats.’
In the meantime, renting out balance flats in non-mature estates can be a way to at least temporarily alleviate the demand for prime location flats. Rental tenants don’t expect to stay there forever, and so might be more willing to temporarily put up with the lack of amenities if there is a good reason, for example, lower rental costs.
Providing extra rentals would also mean lower rental prices across the board, as those who can accept living in non-mature estates move there from mature estates.
The government already runs the public rental scheme, intended for Singaporeans who have no other housing options. It might be a good opportunity to expand this scheme, albeit without the subsidies, since this new group of applicants would not be in the same financial position.
Demand for flats will be split between those who can accept staying in non-mature estates temporarily and those who really need a flat in mature estates. At the very least, this will give the government some extra time to develop and build new projects in mature estates, if absolutely necessary.
Singapore’s housing complaints are twofold: the first is that there aren’t enough ‘good’ flats going around, and the second is that Singaporeans who are single aren’t being given enough opportunities to get a place of their own.
The policies being proposed to lower the age at which singles can apply for flats can deal with the second problem, but it will likely run into the same issues as the first problem unless something is done to address the supply of ‘good’ flats as well.
Demand is only half of the equation when it comes to solving the housing woes that Singaporeans complain about. The far more important factor to deal with is supply, which, thus far, no one has made any real suggestions on.
- Read other articles we’ve written on Singapore’s current affairs here.
Featured Image Credit: Derek Teo/ Shutterstock.com
