World

Singapore is now the most expensive city in Asia-Pacific to buy or rent a private property

May 31, 2023
Saqafy Times

Singapore is now the most expensive city in Asia-Pacific to buy or rent a private property

Nine countries have been included in the 2023 report

Singapore’s private residential property is now the most expensive in the Asia-Pacific region, according to a report released by urban land institute On 30 May. Homes in Singapore’s private sector have overtaken Hong Kong SAR as the most expensive in the region, with an average price of US$1.2 million.

Additionally, Singapore’s private sector rental housing is also the most expensive in the region, with an average monthly rent of around US$2,600, representing an increase of almost 30%. Singapore also leads the way with home ownership at nearly 90 percent, compared to lower homeownership rates in Tokyo, Shanghai and Seoul. South China Morning Post.

The report states that this is due to the government’s continued commitment to enable its citizens to own homes at a reasonable cost since the early years of the country’s independence in the 1960s.

to a sharp rise in house prices and rents, The report gave 5 reasons:

  1. a large influx of immigrants to the city-state
  2. Growing trend of young professionals to move out of their family homes for space and independence
  3. The government’s new measure for homeowners to serve a 15-month waiting-period after disposal of their personal properties before being eligible to buy non-subsidised Housing Development Board (HDB) resale flats
  4. Relatively limited stock of institutional or individually owned rental properties
  5. New supply of housing has decreased over the past few years due to disruptions in the supply chain of construction materials and labor due to COVID.

Meanwhile, prices in the Hong Kong Special Administrative Region (SAR) fell to levels almost five years ago. The decline in private home prices has been linked to an increase in mortgage interest rates and a decline in population. However, it still recorded the highest average home price per square meter at USD 19,768.

In the next highest market, the median for single-family homes in Sydney was US$980,000.

The 2023 report covers nine countries – Australia, China, India, Indonesia, Japan, Philippines, Singapore, South Korea and Vietnam.

Of the eight Indian cities surveyed, Mumbai has the highest average home price of US$3,383 per sq metre, while Delhi NCR recorded US$1,358 per sq metre.