Shortly after independence, Singapore faced a serious problem of housing shortages. In response, the government passed the Housing and Development Act of 1960 which replaced the existing Singapore Improvement Trust with the Housing and Development Board.

Led by Lim Kim San, its first priority during formation was to build as many low-cost housing units as possible, and the Five-Year Plan was introduced. The housing that was initially built was mostly meant for rental by the low income group. The Home Ownership Scheme was also introduced to help this group of people to buy instead of rent their flats. Later, the people were allowed to use their Central Provident Fund money for downpayment. These efforts were however not successful enough then in convincing the people living in the squatter settlements to move into these flats. It was only later, after the Bukit Ho Swee Fire, that HDB's efficiency and earnestness won the people over.

54,430 housing units were built between 1960 and 1965 by the HDB. Due to land constraints, high-rise and high-density flats were chosen.

The policies of the HDB were largely in line of the manifesto set out by the Singapore government; the government was promoting social cohesion and patriotism within the country. In 1968, citizens were allowed to use their pension fund (Central Provident Fund) to purchase and own the homes they were renting to give them a stake of the country and as an incentive to work hard. In 1980, a quota was introduced to ensure that no particular racial group concentrated together to prevent sectarianism. To prevent social stratification that may lead to social conflict, the housing of different income groups are mixed together in estates and new towns.

In the 1990s, the HDB concentrated on the upgrading of existing older flats, installing new facilities such as lifts that stop on every floor. Studio apartments were built specially to suit the needs of senior citizens in Singapore's aging society. However, some of these flats were quickly bought up by young working singles.

Source: wikipedia.org