Lee Jae-myung Focuses on Singapore-Style Public Housing Sale Policy...Meeting with Responsible Minister

[Asia Economy (Suwon) = Reporter Lee Young-gyu] On the 20th, Gyeonggi Province Governor Lee Jae-myung held an online video meeting with Desmond Lee, Minister of National Development of Singapore, who oversees housing supply and urban infrastructure, on the theme of "public housing supply" at the Gyeonggi Provincial Government office.

This meeting was arranged to benchmark Singapore's housing policy, which has the world's highest public housing supply rate.

In the video meeting, Governor Lee explained the background by saying, "Singapore is a densely populated country with a small land area, yet it has solved real estate issues very well, especially creating a global model in housing issues. I think there is much for Gyeonggi Province to learn."

Governor Lee particularly asked about Singapore's housing policy, such as how redevelopment or reconstruction is handled in a situation where the state owns the land and only buildings are sold, and what the price difference is between public and private housing.

Minister Desmond Lee responded, "When public housing is sold, it is done with a 99-year lease contract. Currently, 80% of the population lives in such public housing, and many households want remodeling, so we are working to find solutions."

Regarding the difference between private and public housing, he explained, "The government provides various subsidies through policies like first-time homebuyer public housing, so public housing without subsidies is much cheaper," adding, "We try to keep monthly rent below 25% of monthly income, roughly equivalent to five years of median income salary."

In his closing remarks, Governor Lee said, "In South Korea, the public housing ratio is only 5%, and it needs to be increased to 10%, 15%, and 20%. However, since urbanization has progressed significantly, securing land is not an easy issue. We want to learn a lot from Singapore and ask you to continue sharing your experiences regarding housing policies."

Minister Desmond Lee replied, "In Singapore, there are various discussions on establishing public housing that allows even ordinary citizens, including the poorest, to live in good locations in urban areas. I hope that continuous exchanges between Singapore and Gyeonggi Province officials will provide opportunities for mutual learning."

Singapore had a homeownership rate of only 9% in 1959 but promoted housing problem resolution as an essential policy for social and political stability, achieving a world-class homeownership rate of 90.4% in half a century.

This is why Gyeonggi Province is focusing on Singapore as a reference case for the successful policy of the basic housing model.

Among all households in Singapore, 78.6% live in public housing supplied by the Housing Development Board (HDB) under the Ministry of National Development. Housing is sold to the homeless at about 55% of the private housing supply price, with ownership and housing transaction restrictions (mandatory 5-year residence and a lifetime limit of two sales), and housing with excellent location conditions is supplied to raise homeownership rates.

Meanwhile, Singapore has invited Governor Lee Jae-myung to the Singapore World Cities Summit (WCS), which will be held online starting this September.

Held biennially since 2008, the World Cities Summit is an international conference where leaders (mayors) of major world cities, key figures from politics, economy, academia, and corporate CEOs gather to discuss sustainable urban development challenges and share future visions. Gyeonggi Province promised positive consideration of this proposal.

This content was produced with the assistance of AI translation services.