There are 3 (R)easons why Singapore set a 99-year term limit on public housing and most private housing.
2 of which have been mentioned by the Singapore Government multiple times on multiple occasions.
The last reason was one we thought of as a potential reason that was not explained/explored by people.
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Reason One: Revitalise old Building(s)
Buildings deteriorate over time.
Eventually, there will come a time to demolish and rebuild.
However, if no absolute deadline is set, the probability of the building being demolished is ZERO as people living inside the building will not allow it to happen.
Hence a rule (or law in this case) has to be set in place to mandatorily allow the buildings to be vacated for demolishing and rebuilding.
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Reason Two: Re-purpose the Land
The second reason for the 99-year lease limit on public housing in Singapore is to ensure a sustainable supply of land for future generations.
By having a set lease period, the government can plan for the redevelopment and renewal of housing estates and allocate land for new developments, such as parks, schools, and hospitals, in a systematic and sustainable manner.
This helps to prevent a situation where land becomes scarce and unaffordable, which could lead to social unrest and economic inequality.
Therefore, the 99-year lease limit serves as a long-term planning tool to ensure that land remains available and affordable for the benefit of all Singaporeans.
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Reason Three: Reduce Land Concentration
The 99-year limit is required to prevent the land from being concentrated in the hands of a tiny group of the population.
The Pareto Principle (80-20 rule) has been shown to be evident in most social and economic situations, be it investments, properties, wealth, productivity, or even crime.
Should everyone be allowed to freely own their home indefinitely without a "redistribution" from an external force, it is only a matter of time before 80% of the land goes to 20% of the population, and the rest of the people have to scramble for the remaining 20% of the land.
There was a research that dove into land ownership in Singapore before we had the Land Acquisition Act (LAA).
Research had estimated that the Hadrami Arab community had at one point owned close to 50% of all the land in Singapore, although they made up less than 1% of the population.
They were one of the major property owners in Singapore before the implementation of the LAA.
Had it not been for the LAA, it would be safe to assume that there would most likely be a lot less land today for public use.
Hence to prevent properties from concentrating into the hands of a few, term limits were set on properties so that the majority of the land would return back to the government for redistribution for the next generation.
Of course, this might be counterfactual as it has not happened.
But we definitely would not want to plan our policies in a way that would put this theory to the test.
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Conclusion
These are the 3 reasons why we think there's a 99-year limit on Singapore's lands.
Do you know of any other reasons?
Let us know in the comments below.
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