Private home prices in Singapore are the most expensive with the median price at US$1.32 million
Singapore home prices continued to be the most expensive in Asia-Pacific, ahead of Hong Kong and Sydney according to the Urban Land Institute (ULI). The median price of Singapore’s private homes in 2023 stood at US$1.32 million, up 8.4 per cent from the year before. ULI attributed the increase to a large influx of immigrants into the sector.
It identified these buyers as wealthy individuals from mainland China who made Singapore a preferred destination for such transactions.
On a per square foot (psf) basis, Hong Kong continued to be the most expensive housing market with a median home price of more than US$18,000 psf, surpassing Singapore, which stood at US$11,750 psf. Home median price in Hong Kong stood at US$1.16 million, ULI data indicated.
The next highest market after Hong Kong was Sydney houses, which have a median price of US$1.06 million.
Public housing in Singapore continued to be the most attainable option for home ownership. The median price of Housing and Development Board (HDB) units, which represent 90 per cent of the total housing supply in the market, is less than five times the median annual household income.
In contrast, Shenzhen was deemed the least attainable when it comes to home ownership. It has the highest ratio of median home prices relative to median annual household income of 32.3 times. This was followed by Beijing, which has a ratio of 28.7 times.
To compare, the affordability ratio for Singapore private homes stood at 13.5, which is in the unaffordable range. Homeownership is deemed unaffordable when the ratio of the median home price to median annual household income exceeds five.
The affordability ratio of Singapore HDB flats stood at 4.7.
ULI Asia-Pacific chief executive Alan Beebe said the housing market has been significantly affected by heightened interest rates and rising costs.
“Home ownership represents the most valuable asset for most households, and the housing sector is a key part of the overall economy,” he said. He expects governments in the region to introduce more countermeasures to rein in rising home prices.
(Source: The Business Times)
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