My Parliamentary Colleagues,

Special Guests,

Residents and Friends,

1. We celebrate 42 years of nation building this year with the theme of Singapore as “A City of Possibilities”. For the first time, our National Day Parade will be held at Marina Bay this year on a “floating” platform, against the backdrop of our fast-changing cityscape, which symbolizes the remarkable transformation Singapore has undergone since our independence in 1965.

2. As Singaporeans, all of us have much to be proud of, as we have all worked hard to bring about the Singapore that we have today. We should continue to work hard together as one people to create new possibilities for ourselves and our children.

HDB Flats as a Good Store of Value

3. Our economy has continued to do well. Property prices have increased in tandem. In the first half of this year, HDB flat prices grew by a steady 4.2%, after enjoying growth of 2% in 2006. What this means is that on average, the more than 800,000 who own HDB flats saw their property investment appreciate by over 6% over the last 18 months.

4. Flat owners can look forward to sustained growth in the value of their HDB flats, supported by the projected 5-7% economic growth for this year.

5. Reflecting on the appreciation in the value of HDB flats, there are 2 points that I want to make. First, this confirms the point that HDB flats are a good store of value for our citizens to invest their savings in. Second, the HDB flat has given all of us a stake in Singapore’s continued progress. As the economy has grown, so has the value of our HDB flats.

Ensuring Affordability

6. For first-timers and new households, I want to reiterate that the Government remains committed to keeping public housing affordable for the vast majority of our citizens.

7. In early 2006, we introduced the Additional CPF Housing Grant (AHG) that provided lower income first-time flat buyers with up to $20,000 in additional subsidy to help them buy their first HDB flat. HDB also resumed building new 2-room flats to keep homeownership within the reach of Singaporeans, including the lower income households.

8. HDB is currently looking into improving the Additional CPF Housing Grant to offer more assistance to more households.

Enhancing upgrading

9. HDB flat owners have also benefited from enhancements in flat value through the upgrading of HDB estates.

10. Our upgrading programmes have been continually enhanced over the years. In recent years, we have focused on preparing for an ageing society with programmes for Lift Upgrading and providing Barrier-Free Accessibility. We are on track to complete Lift Upgrading for all eligible blocks by 2014. Our Town Councils have also been working hard to put in place ramps and other improvements in our estates, so that the growing number of elderly residents among us can move in our estates with greater ease.

11. My Minister-of-State Ms Grace Fu recently led a committee to seek views on building stronger HDB communities. One recommendation was to encourage greater resident participation and flexibility to decide the improvements they want to make. This aspect will be incorporated into the upgrading programmes when they are next revised and enhanced.

The Housing Lifecycle

12. I have talked about how HDB flats offer their owners a good store of value, and how this value has been continually enhanced through upgrading programmes. We also need to be able to unlock this value in one’s old age, to help supplement retirement expenses.

13. Currently, flat owners can unlock the value in their HDB flats by selling their flats and moving to a smaller flat or Studio Apartment, and using the proceeds to help meet their retirement expenses.

14. Going forward, we can and will do more to put in place more options to help Singaporeans unlock the value in their HDB flats.

Conclusion

15. In conclusion, we have successfully built Singapore into “A City of Possibilities”, turning adversities into opportunities. We have not only survived as a country, but have prospered beyond all expectations.

16. Singapore must be “A City of Possibilities” for all Singaporeans, and not only a few. Through the ownership of HDB flats, all of you have shared in the country’s progress – and the opportunity to realize the possibilities that Singapore offers. Let us work together to realize and create more possibilities, for ourselves and our children.

17. Happy Birthday Singapore!

>>back to top