Singapore's future Prime Minister, Lawrence Wong, addressed the country's red-hot property market in a May Day rally, stating that affordable housing will always be a key part of Singapore's social compact. Wong emphasised that the government-built flats are the best in the world and added that the median household income has risen ten times since 1980, along with the construction of public housing. Wong's comments come as property prices in Singapore have risen for 12 consecutive quarters, bucking the global housing slowdown trend.
There are concerns among Singaporeans that home ownership will be increasingly difficult for future generations. The government has raised property taxes that target foreign buyers and increased the construction of public housing. However, despite these efforts, citizens worry that home ownership will be out of reach for future generations.
Singapore's housing policy has led to almost 90% of residents owning government-built apartments. Since Singapore's independence in 1965, citizens have been able to buy these units at a steep discount, turning home ownership into a key way for Singaporeans to grow their wealth. However, the pandemic and surging money inflows from ultra-wealthy foreigners have caused fears of growing inequality among citizens.
The government is ramping up the construction of flats to address the housing issue. Wong noted that 20,000 flats will be completed in 2023. The government's efforts to address the housing issue will feature prominently in the upcoming presidential elections. The vote will test the nation's mood ahead of a general election that must be called by November 2025. The ruling People's Action Party is seeking to win over younger voters who are facing rising living costs after suffering its worst-ever showing in the 2020 national vote, where it still won 89% of seats.
The succession of Singapore's political leadership is also a sensitive issue. Wong will eventually take over Lee Hsien Loong as the next Prime Minister, marking the end of Lee's roughly two decades in power. Wong gave the keynote May Day rally address, which is usually reserved for the Prime Minister. Analysts suggest that this indicates that the leadership succession is in an advanced stage. While little has been said about the timing of the handover of power, Lee has said it will coincide with the timing of the national elections.
Political analyst and law professor at Singapore Management University, Eugene Tan, said that "housing will be a contested issue in the election and so it's keen to lower the political temperature before the hustings." Wong's comments were aimed at reassuring Singaporeans that the government is committed to making public housing affordable and accessible, and that the issue of affordable housing is a priority for the government.