According to Demographia International Housing Affordability Survey, homes in Singapore recorded a slight drop in their average price in 2016. The Housing Affordability Survey is done every year and this is the 13th Annual report on housing market.
In 2016, the home price in Singapore was 4.8 times the average annual household income before paying tax. This might be considered better than 5.1 in 2013, however, the household income still cannot afford the homes. In order to consider affordable, home price should not be bigger than 3 time the pretax annual income.
Apart from Japan and Ireland, Singapore is one of the three countries, where housing markets were not beyond affordability based to the ratio of home price and annual income. In these three countries average home prices were equivalent to 5.1 times or above yearly household income.
Even though, Demographia considered 4.8 ‘seriously unaffordable,’ the organisation praised the Singapore’s officials for implementing various measures that kept residential prices within the reach of the masses, regardless of physical hindrance.
“Compared to most of the metropolitan areas in the world, Singapore, perhaps has most land scarce geography, with no mainland area within its boarder. Because of this land scarceness, there is no potentiality to develop Greenfield, and it is also very difficult to maintain a continuous land supply.”
Even though availability of land is limited, Singapore has developed a publicly sponsored housing program. In Singapore, there is not only a vibrant market for private residential properties, but also a 88 percent home ownership rate, which is the highest home ownership rate in the world. Just 50 years ago, Singapore was dotted with many squatter settlements, it added.
In the meantime, Hong Kong (18.1) has continued to become the most expensive housing market for seven consecutive years. Sydney (12.2) is second to Hong Kong and Vancouver (11.8) is third. Interestingly, the most affordable were available in Racine in Wisconsin, Decatur in Illinois and Michigan’s Bay City. The ratio in these cities were between 1.8 to 1.9. Another elegant and classy affordable investment is the Watercove Ville- Freehold Seafront Living
The latest Demographia survey presents data of Quarter 3 2016 in 406 metropolitan housing markets in nine countries. The survey was carried in Australia, Canada, China, Ireland, Japan, New Zealand, Singapore, the United States, and the United Kingdom.