Singapore Tops the List as the Most Expensive City for Homeownership and Renting in Asia-Pacific

According to the Urban Land Institute's (ULI) Asia Pacific Housing Center's Housing Accessibility Index report, Singapore has been ranked as the most expensive city in Asia-Pacific for both homeownership and renting. The report reveals that the average price of a single-family home in Singapore will reach $1.2 million by 2022, making it the highest among cities in Asia-Pacific. Additionally, the report suggests that rents in Singapore have increased by nearly 30% year-on-year, with the average monthly rent for private property being the highest among the cities surveyed.

The report provides an overview of the housing affordability in 45 cities across nine Asia-Pacific countries, including Australia, China, India, Indonesia, Japan, Philippines, Singapore, Korea, and Vietnam. Despite being ranked as the most expensive city for homeownership, Singapore ranks second in terms of affordability, after Brisbane, with a ratio of 4.5. However, the median home price in Singapore is still 13.7 times higher than the median household income, which is higher than the average across the region.

The report cites several factors contributing to the rise in house prices in Singapore, including a large influx of immigrants, which has led to an increase in demand. Additionally, young high-quality labor leaving their family homes in search of more space and freedom has contributed to the increased demand for private housing. Moreover, the reduced supply of new housing due to COVID-19 disruptions complicates matters further.

To combat rising real estate prices, the Singapore government introduced measures such as doubling the tax on foreign homebuyers to 60%. The government continues to monitor the situation to ease the burden on Singaporeans.

Furthermore, the report indicates that Singapore also tops the chart with the highest rent rates in the region. The sudden increase in the number of migrants, the slow pace of building completion, and limited rental supply owned by organizations or individuals were cited as factors contributing to the exponential rise in rent rates.

Singapore's median home prices are at an all-time high, with homeownership being the most expensive in the region. In terms of affordability, however, Singapore ranks second, after Brisbane. Rent prices have surged in the past year, with Singapore topping the list as the most expensive city for renting as well. The Singapore government has introduced several measures to ease the burden on citizens, and one can only hope that they prove to be effective.