Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said in the Budget 2015 statement on Monday, home ownership is one of Singapore’s four pillars of social security system.
He said the government has been systematically strengthening the social security system, which is made up of home ownership, CPF, healthcare assurance and Workfare.
“The first strength of our social security system is that the vast majority of Singaporean households are home owners. And over 80 percent of our lower-income households, those in the bottom 20 percent of incomes, own their homes.”
He added the high home ownership rate in Singapore is a major advantage compared to many other countries, where lower-income retirees often struggle to pay their rents.
However, Mr Tharman acknowledged many homeowners are asset-rich and cash-poor in retirement, and schemes have been strengthened to help them get cash out of their homes.
Additionally, housing grants were increased so that middle and lower-income couples can afford their first homes.
While this year’s budget has limited bearings on the property market with no mention of the existing measures on the housing market, it highlights some plans invest heavily in infrastructure.
JLL’s Head of Research for Southeast Asia Chua Yang Liang said, “…the economic restructuring alongside proposed investment in infrastructure that will enhance Singapore’s connectivity both internally and internationally, should support development in the hospitality, retail and logistics segments of the real estate market in the longer term.”