High prices and rising rent mark Singapore as the most expensive city in the region for housing.
SINGAPORE: According to a recent study, Singapore has emerged as the most expensive city in the Asia-Pacific for both owning and renting a private home. The report, released on May 30, found that the median price of a private home in Singapore reached US$1.2 million (S$1.6 million) in 2022, surpassing Hong Kong’s median price of US$1.16 million.
The Urban Land Institute (ULI) Asia Pacific Centre for Housing’s Home Attainability Index ranked Singapore as the region’s priciest city for renting private homes as well. The index offers insights into the affordability and attainability of homes across 45 cities in nine countries within the Asia-Pacific region.
When comparing housing affordability, the study revealed that the median private home price in Singapore was 13.7 times the median household income, which is significantly higher than the ratio for public Housing and Development Board (HDB) flats, which stands at 4.7. Despite this, Singapore ranks as the second most affordable city for public housing in the Asia Pacific, behind Brisbane, Australia.
The increase in Singapore’s home prices by over 8% in the past year can be attributed to factors such as a surge in immigration, a trend of young professionals moving out of family homes for more independence, and a slowdown in the supply of housing caused by COVID-19 disruptions.
Meanwhile, home prices in Hong Kong decreased by 8.7%, largely due to population decline and rising mortgage rates. However, Hong Kong remains the most expensive on a per square meter basis, with an average price of US$19,768, almost double Singapore’s US$10,715.
In terms of home ownership, Singapore continues to boast one of the highest ownership rates in the world, with nearly 90% of its population owning homes, both public and private. The average HDB price rose 7.9% to US$409,000, while private homes saw an even steeper increase.
The report also highlighted the growing cost of renting in Singapore. With a median monthly rent of US$2,596, Singapore’s rental market is the most expensive in the region, reflecting both a strong influx of expatriates and a slowdown in construction. Sydney ranked second for high rents at US$1,958, while Hong Kong followed at US$1,686.
While rents remain high, the Ministry of National Development (MND) has acknowledged that these pressures will likely ease as more housing units are completed over the next few years. The government continues to address these challenges with cooling measures and long-term supply management to stabilize the housing market.
As Singapore navigates its housing affordability challenges, the study underscores the country’s unique position as both a regional leader in economic prosperity and a city grappling with high living costs.
