reporter2
30-01-13, 12:11
http://www.businesstimes.com.sg/premium/top-stories/khaw-need-700000-more-homes-2030-20130130
Published January 30, 2013
Khaw: Need for 700,000 more homes by 2030
Sufficient land has been set aside for this purpose
By ong chor hao
[SINGAPORE] Enough land has been set aside for 700,000 more homes here by 2030 - more than half the 1.2 million households currently - to cater to a growing population.
This is part of a plan to provide good and affordable housing for Singaporeans detailed in the Population White Paper yesterday, as the population may reach 6.9 million by then.
"To support that kind of trajectory, we estimate that we will need another 700,000 new homes," said Minister for National Development Khaw Boon Wan at a press conference.
The idea is to create a sufficient buffer, he said.
The White Paper acknowledged that Singapore had fallen behind in its planning and investment for infrastructure development, and accordingly discussed other improvements, such as a better and more extensive transport system.
Mr Khaw called for patience and understanding as solving the issue will take time.
"We are determined to address the current problem and definitely the overcrowding will ease," he said, noting that housing matters can be improved at a slightly faster pace than transport.
"If you decide to build a line, it might take you 10 to 12 years," he said. "Housing, you decide to start building and (in) four to five years, you can realise those houses."
Of the 700,000 homes that can be built, about 200,000 are already under construction.
Of the remaining half a million houses, many will be in new towns, such as Tengah, Tampines North and Bidadari.
There will also be new homes built in mature estates where land is available. "We do want our children, when they get married, to stay nearby," Mr Khaw said.
More details will be revealed in a Land Use plan report by the MND later this week.
Donald Han, special adviser at HSR Property Group, said that the paper provided some certainty for the property market, which has been wondering if there will be an oversupply of homes in the next two or three years.
"I think the overall picture is one that is positive, mainly because the longer-term picture shows a correlation of a very sustainable, resilient market moving forward," he said.
He noted that the 700,000 homes roughly translates into about 39,000 units a year, not far off the pace of the last few years.
Having a buffer stock also keeps prices in check, market watchers said.
However, Mr Khaw warned that building this buffer comes at a cost.
"Underdo and you have today's problem. Overdo and it's too costly for taxpayers. Like all things, we have to find that sweet spot and achieve that balance going forward," he said.
Mr Khaw noted how MND was heavily criticised not too long ago for over-building homes, which led to a lot of empty flats.
Nicholas Mak, executive director of research and consultancy at SLP International, explained the cost to taxpayers if the extra supply of homes were indeed left vacant.
"There is no return, and they are actually depreciating. Physically, as the building is getting older, and also the lease on the land ... would be getting shorter."
He was also worried about social costs from having so many homes, which may lead to smaller homes and a poorer quality of life.
The government also responded to concerns that Singapore could become as congested as cities such as Hong Kong at the conference.
Deputy Prime Minister Teo Chee Hean said Hong Kong's population density is about 22,700 per square kilometre (sq km), while Singapore's is about 11,000 per sq km. Even with a 6.9 million population, Singapore's population density will be around 13,700 per sq km.
Published January 30, 2013
Khaw: Need for 700,000 more homes by 2030
Sufficient land has been set aside for this purpose
By ong chor hao
[SINGAPORE] Enough land has been set aside for 700,000 more homes here by 2030 - more than half the 1.2 million households currently - to cater to a growing population.
This is part of a plan to provide good and affordable housing for Singaporeans detailed in the Population White Paper yesterday, as the population may reach 6.9 million by then.
"To support that kind of trajectory, we estimate that we will need another 700,000 new homes," said Minister for National Development Khaw Boon Wan at a press conference.
The idea is to create a sufficient buffer, he said.
The White Paper acknowledged that Singapore had fallen behind in its planning and investment for infrastructure development, and accordingly discussed other improvements, such as a better and more extensive transport system.
Mr Khaw called for patience and understanding as solving the issue will take time.
"We are determined to address the current problem and definitely the overcrowding will ease," he said, noting that housing matters can be improved at a slightly faster pace than transport.
"If you decide to build a line, it might take you 10 to 12 years," he said. "Housing, you decide to start building and (in) four to five years, you can realise those houses."
Of the 700,000 homes that can be built, about 200,000 are already under construction.
Of the remaining half a million houses, many will be in new towns, such as Tengah, Tampines North and Bidadari.
There will also be new homes built in mature estates where land is available. "We do want our children, when they get married, to stay nearby," Mr Khaw said.
More details will be revealed in a Land Use plan report by the MND later this week.
Donald Han, special adviser at HSR Property Group, said that the paper provided some certainty for the property market, which has been wondering if there will be an oversupply of homes in the next two or three years.
"I think the overall picture is one that is positive, mainly because the longer-term picture shows a correlation of a very sustainable, resilient market moving forward," he said.
He noted that the 700,000 homes roughly translates into about 39,000 units a year, not far off the pace of the last few years.
Having a buffer stock also keeps prices in check, market watchers said.
However, Mr Khaw warned that building this buffer comes at a cost.
"Underdo and you have today's problem. Overdo and it's too costly for taxpayers. Like all things, we have to find that sweet spot and achieve that balance going forward," he said.
Mr Khaw noted how MND was heavily criticised not too long ago for over-building homes, which led to a lot of empty flats.
Nicholas Mak, executive director of research and consultancy at SLP International, explained the cost to taxpayers if the extra supply of homes were indeed left vacant.
"There is no return, and they are actually depreciating. Physically, as the building is getting older, and also the lease on the land ... would be getting shorter."
He was also worried about social costs from having so many homes, which may lead to smaller homes and a poorer quality of life.
The government also responded to concerns that Singapore could become as congested as cities such as Hong Kong at the conference.
Deputy Prime Minister Teo Chee Hean said Hong Kong's population density is about 22,700 per square kilometre (sq km), while Singapore's is about 11,000 per sq km. Even with a 6.9 million population, Singapore's population density will be around 13,700 per sq km.