According to a recent report published by the Urban Land Institute on May 30, Singapore has emerged as the costliest market for private residential properties in the Asia Pacific region.
The average price for private homes in Singapore has surpassed Hong Kong SAR, reaching an impressive $1.2 million.
Additionally, rental properties in Singapore’s private sector also rank among the priciest, with an average monthly rent of approximately $2,600, showing a significant increase of around 30%.
The South China Morning Post highlights that Singapore leads the way with a remarkable home ownership rate of nearly 90%,
in stark contrast to cities like Tokyo, Shanghai, and Seoul, where home ownership rates remain comparatively low.
The report attributes Singapore’s position as a high-priced property market to the government’s longstanding commitment to providing affordable housing for its citizens since the country gained independence in the 1960s.
The report identifies five key factors contributing to the surge in house prices and rents:
1) Increasing number of immigrants choosing Singapore as their preferred city-state.
2) Growing trend of young individuals moving out of their family homes in search of more space and independence.
3) Implementation of a new government measure mandating a 15-month wait-out period for homebuyers after selling their personal assets,
before becoming eligible to purchase a non-subsidized Housing Development Board (HDB) resale flat.
4) Limited availability of rental properties owned by institutions or individuals.
5) Slowdown in home construction due to disruptions in building materials and labor supplies caused by the COVID-19 pandemic.
Meanwhile, private house prices in the Hong Kong Special Administrative Region (SAR) have declined to levels not seen in nearly five years.
The drop in prices has been attributed to rising interest rates and a decline in the population.
The report covers nine countries in the region, including Australia, China, India, Indonesia, Japan, Philippines, Singapore, South Korea, and Vietnam.
Among the eight Indian cities surveyed, Mumbai holds the highest price per square meter at $3,383, while Delhi-NCT recorded a comparatively lower price of $1,358 per square meter.
