Hong Kong and Singapore have many resemblances in the national and physical contexts. Both are two prominent Asian cities with speedy economic growth and industrial expansion. Historically, two cities-states were British colonies and adopted the British legal and judicial system. In addition, majority of the population group are ethnic Chinese. Table 1. has summaries the basic background information of Hong Kong and Singapore.
Table 1: Summary of basic information of Hong Kong and Singapore
3.2 Development of Housing Policy in Singapore
Before the establishment of proper housing policies, many Singaporean was facing housing shortage problem and living under appalling living conditions. In 1947, the colonial government appointed a Housing …show more content…
The government targets to improve the living conditions and developed each town to be a self-contained town and to meet the housing needs and demands of every citizen. Buyers of firsthand and resale flats are subject to eligibility criteria according to their citizenship, age, family status and ownership of property. Furthermore, there are income ceilings for buyers depending on the size and location of new flats. The implementation of HOS provide Singapore citizens a chance to own their own home which many scholars has suggested it benefits the Government as well as the individual home buyer. In 1968, in order to assist more people to purchase their own flats, the government allows buyers of public housing to withdraw a portion of their savings in the Central Provident Fund (CPF) for down payments and mortgage payments. In addition, citizens can resell their public flats in marketable price and the profit gain can be used to upgrade to a better public housing. In addition, the government also offered various housing subsidized grant loans for citizens to become home owners as discussed below:
HDB Housing Loan
HDB provides a low interest rates housing loans to eligible flat buyers whereby all applicants are required to pass credit assessment and mortgage loan criteria. The loan ceiling is 90% of selling price or value …show more content…
The grant aims to assist singles and married couples that meet the first-timer prerequisite, and families living near parents/married child. It is also a way to encourage Permanent Residents to becoming citizens by top-up grant offering. Under the current CPF policy, the employer has to contribute 16 percent of the employee's monthly gross salary while the employee contributes 20 percent of his monthly gross salary. The home ownership scheme in Singapore does not only support the lower income households, but also extend to majority of the middle income household. Chiu (2013) reveals that housing welfare system can be covered to a large group of population where political and social dominated. With strong government support and control in the public housing finance, it is proven that HDB could be able to solely manage in all public housing and its finance.
Executive Condominiums
In 1997, Executive Condominiums (ECs) are introduced for Singaporeans who can afford more than an HDB flat but find private property to be out of their affordability. ECs are developed and sold by private developers, with design and facilities similar to private property. However, home owners of ECs are not allowed to sell their property to the open market to Singaporeans within 5 years of occupancy. After 10 years of occupancy, the flat is treated as same
Table 1: Summary of basic information of Hong Kong and Singapore
3.2 Development of Housing Policy in Singapore
Before the establishment of proper housing policies, many Singaporean was facing housing shortage problem and living under appalling living conditions. In 1947, the colonial government appointed a Housing …show more content…
The government targets to improve the living conditions and developed each town to be a self-contained town and to meet the housing needs and demands of every citizen. Buyers of firsthand and resale flats are subject to eligibility criteria according to their citizenship, age, family status and ownership of property. Furthermore, there are income ceilings for buyers depending on the size and location of new flats. The implementation of HOS provide Singapore citizens a chance to own their own home which many scholars has suggested it benefits the Government as well as the individual home buyer. In 1968, in order to assist more people to purchase their own flats, the government allows buyers of public housing to withdraw a portion of their savings in the Central Provident Fund (CPF) for down payments and mortgage payments. In addition, citizens can resell their public flats in marketable price and the profit gain can be used to upgrade to a better public housing. In addition, the government also offered various housing subsidized grant loans for citizens to become home owners as discussed below:
HDB Housing Loan
HDB provides a low interest rates housing loans to eligible flat buyers whereby all applicants are required to pass credit assessment and mortgage loan criteria. The loan ceiling is 90% of selling price or value …show more content…
The grant aims to assist singles and married couples that meet the first-timer prerequisite, and families living near parents/married child. It is also a way to encourage Permanent Residents to becoming citizens by top-up grant offering. Under the current CPF policy, the employer has to contribute 16 percent of the employee's monthly gross salary while the employee contributes 20 percent of his monthly gross salary. The home ownership scheme in Singapore does not only support the lower income households, but also extend to majority of the middle income household. Chiu (2013) reveals that housing welfare system can be covered to a large group of population where political and social dominated. With strong government support and control in the public housing finance, it is proven that HDB could be able to solely manage in all public housing and its finance.
Executive Condominiums
In 1997, Executive Condominiums (ECs) are introduced for Singaporeans who can afford more than an HDB flat but find private property to be out of their affordability. ECs are developed and sold by private developers, with design and facilities similar to private property. However, home owners of ECs are not allowed to sell their property to the open market to Singaporeans within 5 years of occupancy. After 10 years of occupancy, the flat is treated as same