A new report states that Singapore is the only gateway city in the Asia-Pacific region where housing is relatively affordable and attainable.
The Urban Land Institute (ULI), in its inaugural “Housing Attainability Index” report, stated that the report provides a comparison of housing conditions among the most populous major cities in the Asia-Pacific. The non-profit educational and research institute collected housing and household income data from 28 cities across Singapore, China, Japan, Australia, and South Korea.
Singapore: Most Affordable Homes to Buy, Most Expensive to Rent
Thanks to the low construction costs of the Housing & Development Board (HDB), Singapore has the highest homeownership rate—nearly 90%—with a median price of US$379,283. Private homes, with a median price of US$1.13 million, make up less than 20% of the total housing stock.
That being said, Singapore’s non-HDB (private) housing is the most expensive to rent in the region studied, with a median monthly rent of US$2,046. It is followed by Sydney at US$1,895.
Hong Kong Has the Highest Home Purchase Costs
Measured by the rent-to-income ratio, Hong Kong is the most expensive city to rent in, with monthly rent accounting for about 50% of the median household income. ULI stated that this finding is not surprising, given Hong Kong’s reputation as the world’s most expensive city. However, heavily subsidized public rental housing—which accounts for one-third of the total housing stock—offers an affordable option for renters.
Hong Kong is also the most expensive city in the Asia-Pacific to buy a home, with a median price of US$1.27 million. This figure only considers private housing, which accounts for half of Hong Kong’s total housing stock. ULI pointed out that since 2003, private housing prices in Hong Kong have surged sixfold, while rents have risen by 150%. The typical down payment for a home loan in Hong Kong is 40%, the highest in the Asia-Pacific.
Hong Kong’s homeownership rate is 48.6%, on par with Seoul. Japan has the lowest homeownership rate at 37%, while Chinese cities have rates between 70% and 80%.
Shenzhen’s Crushing Homebuying Burden
ULI noted that based on the ratio of median home price to median household income, Shenzhen is the most unaffordable city for homebuying. This is primarily due to the limited supply of new private housing and the city’s rapid population growth.
For further enquiries, please get in touch:
WeChat: sgleokwek
Telegram: sgleokwek
WhatsApp: Message us
