Prepare for public housing supply avalanche as ageing HDB flat owners die

Singapore reaches a population milestone in 2018: The total number of senior citizens at 65 years and older equals the number of young people at 15 years and younger. So far, the discussion on an ageing population has largely been focused on the costs of healthcare and social support. It is time to consider the impact on another area - public housing. The increasing deaths in an older population and a reducing base of young people have huge implications for public housing. In the past 40 years, the focus has been on ramping up the supply of public housing flats, providing Singaporeans with homes and appreciating assets. It is perhaps time to start discussing unwinding these old flats, so that increased supply and falling demand from an ageing population do not cause a collapse in public housing resale flat values that would have a knock-on effect on the overall housing market. It is not too early to start considering how the rapidly ageing population and the deaths of baby boomers may add downward pressure on home prices. There is light at the end of the tunnel if due attention is given to the impending supply avalanche and effort is made to work towards implementing solutions.