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Redistribution and Housing Wealth Formation

  • Sock-Yong Phang
Chapter
Part of the Palgrave Advances in Regional and Urban Economics book series (PARUE)

Abstract

Like other global cities, Singapore faces a similar challenge of increasing income inequality. However, housing policies have been used to mitigate wealth inequality and to ensure affordable homeownership. The effective homeownership subsidy for each household is carefully calibrated. Similar HDB flats sell for a different amount based on a host of criteria that determine the housing grants for which buyers are eligible. Moreover, at the point of purchase, foreign property buyers and investors are taxed at a higher rate. Phang estimates that Singapore’s housing policies have resulted in gross housing wealth distribution approximating capital ownership distribution in Piketty’s “ideal society”.

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Sock-Yong Phang
    • 1
  1. 1.School of EconomicsSingapore Management UniversitySingaporeSingapore

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