1 year ago
168
Modern and luxury astute homes successful Singapore, seen from supra during a blistery summertime time astatine the Keppel Bay Yacht Marina country successful the metropolis centre.
Tobiasjo | E+ | Getty Images
Singapore's backstage homes are present the astir costly successful Asia-Pacific, having overtaken Hong Kong, according to a caller report.
Data from the Home Attainability Index from the Urban Land Institute (ULI) Asia Pacific Centre for Housing showed the median terms of Singapore's backstage homes was $1.2 cardinal successful 2022, compared to Hong Kong's $1.16 million.
Private rental homes successful Singapore besides had the highest monthly rent successful the portion astatine $2,600 — "far exceeding" different cities specified arsenic Sydney, Melbourne and Hong Kong, according to the report.
The study drew connected authorities statistic from 45 cities successful 9 markets successful Asia-Pacific — portion measuring location attainability for some location ownership and location rentals successful narration to the median income of households.
Hong Kong vs. Singapore
Home prices successful Hong Kong "dropped substantially" successful 2022, ULI said, citing the important summation successful owe involvement rates arsenic Hong Kong keeps gait with the U.S. Federal Reserve.
In October, Hong Kong's location prices plunged to a five-year low arsenic involvement complaint hikes pushed up borrowing costs.
Earlier this month, Hong Kong's monetary authorization raised the basal involvement complaint to 5.5%, aft the U.S. cardinal slope hiked the fed funds complaint to 5% to 5.25%.
The ULI study said "a nett outflow of population" and "less optimistic view" connected the section spot marketplace besides brought Hong Kong's median location terms down by 8.7% — from 2021's $1.27 cardinal to astir $1.16 cardinal successful 2022.
Meanwhile, Singapore's backstage homes overtook Hong Kong's arsenic the astir costly successful Asia-Pacific, with the median terms expanding implicit 8% successful the past year, said the report.
Just past month, Singapore raised taxes for spot purchases amid concerns that surging prices "could tally up of economical fundamentals."
Most costly cities for backstage homes successful Asia-Pacific
| Singapore | $1,200,087 |
| Hong Kong | $1,155,760 |
| Sydney | $980,209 |
| Melbourne | $716,200 |
| Shenzhen | $626,964 |
Source: Urban Land Institute Asia Pacific Centre for Housing
In a caller circular of cooling measures, the Singapore authorities said section and overseas buyers of residential properties volition person to wage higher taxes, known locally as additional buyers' stamp duties.
However, the study added that Hong Kong's backstage homes are inactive the astir costly connected a per quadrate metre ground — costing $19,768 and "well implicit twice" the median figures for Singapore, Shenzhen and Beijing.
Rental prices
Singapore's backstage rental homes person the highest monthly rent successful the region, having accrued by astir 30% successful 2022.
ULI attributed the summation successful rent and location prices to assorted factors specified arsenic an summation successful migrants, a slowdown successful gathering completion and young professionals moving retired of their multi-generational household homes for much abstraction and freedom.
Most costly cities for backstage rental successful Asia-Pacific
| Singapore | $2,596 |
| Sydney houses | $1,958 |
| Sydney apartments | $1,732 |
| Hong Kong | $1,686 |
| Brisbane houses | $1,657 |
Source: Urban Land Institute Asia Pacific Centre for Housing
Private location prices saw a diminution successful Sydney and Melbourne as much radical moved backmost to determination cities and an "unprecedented" 11 involvement complaint hikes successful 12 months, the study added.
But houses and apartments crossed Sydney, Melbourne and Brisbane saw an summation successful the median monthly rent.
Sydney's location rentals outgo a monthly mean of $1,958 while flat rentals were astatine $1,732.
"There has been a reversal of colonisation question backmost to superior cities since the extremity of Covid-19 successful 2022. This was apt 1 of the reasons for the summation successful median rent successful the country," David Faulkner, ULI's president for Asia-Pacific told CNBC.
Home attainability
Despite Singapore's backstage homes being the astir costly successful the region, the metropolis authorities besides has the highest homeownership complaint astatine 89.3%.
That's successful spite of a 7.9% summation of median HDB prices from 2021 to 2022, with the ratio of median HDB terms to median yearly income besides rising from 4.5 to 4.7. HDB, oregon the Housing Development Board, is Singapore's public housing authority.
For backstage homes successful Singapore, the ratio is 13.7.
"In general, homeownership is considered unaffordable erstwhile the ratio of the median location terms to median yearly household income exceeds five," said the report.
"By this standard, lone Singapore's Housing Development Board (HDB) units and flat units successful Melbourne and Brisbane, Australia, are considered affordable."
Where homes are astir unaffordable successful Asia-Pacific
| Shenzhen, China | 35 |
| Ho Chi Minh, Vietnam | 32.5 |
| Beijing, China | 29.3 |
| Da Nang, Vietnam | 26.7 |
| Hong Kong, China | 26.5 |
Source: Urban Land Institute Asia Pacific Centre for Housing
Similar to past year's index, mainland Chinese cities person among the lowest ranks successful presumption of location attainability.
The study noted that the homeownership complaint successful China has "declined substantially" successful the past 10 years.
"The cities' location attainability is straight tied to the magnitude of caller lodging proviso comparative to summation successful population," it added.
"For Shenzhen, its colonisation accrued by much than 7 cardinal successful the 12-year play from 2010 to 2022 … yet its caller lodging banal accrued by lone 31 cardinal quadrate meters, the smallest summation [among Chinese cities] during the aforesaid period."
English (US) ·