Subsidized Housing !

It is now obvious that many people will be denied the benefit of home ownership because Australian  home prices have surged beyond their affordability level.  We have vast waiting lists for what we call " public housing " - rentals that are government owned and available to low income earners for a fixed percentage of their income.  That queue stretches back years.

Perhaps we should give some thought to the housing system adopted by the government of Singapore.   That island state seems to be a model of efficiency and for many years it was ruled by the elder statesman, the late Lee Kwan Yew who became prime minister when it gained independence from Britain.   Today, four out of every five Singaporeans are home owners and that seems to go a long way in creating a calm and settled state.

Singapore is a tiny island with a vast population made up of three ethnic groups - Malay, Chinese and Indian, plus nationals from most world countries.  Ownership of building sites remains in government hands and the actual homes erected are subjected to a ninety-nine years lease.  The government is constantly building tower blocks and the three bedroom family apartments are made available to applicants on the waiting list.  In many cases, this is selected off the plan and the applicant waits for the building to commence some months in the future.

All such homes are on the basis that the resident will live there on an owner/occupier basis.  On average, a three bedroom apartment has a cost of $ 217,000 and the applicant can tap his or her superannuation for the required deposit.   The Singaporean government wisely surmised that a person with ownership rights is a more settled and content citizen.   They are creating a capital asset that will ensure that along with their superannuation they will be secure in their old age.

The government allocates this housing in direct ratio to the percentage of Malays, Chinese and Indians in the community, so that each tower block represents that same mix of nationalities, ensuring that no ethnic enclaves are possible.   Families are encouraged to " downsize " to a smaller apartment when their families grow and dissipate and the rules require this same ethnic mix to be maintained.

Because this is cost subsidized there are rules that apply. An owner/occupier may not move or sublet in the first five years of tenancy - without permission.  Obviously, this is to prevent these subsidized units being used for a quick capital gain by making them available to others wanting to jump the queue.  They are intended to make home ownership within reach of the masses.

This would not eliminate the need for " public housing " .   It would appeal to those with a settled lifestyle and ambition, but purely rental accommodation is still necessary for emergency cases and those unable to conduct their affairs in a solvent manner.    It could be a useful addition to settling the low paid in close proximity to the work opportunities to which they are presently denied !