According to a report by the Urban Land Institute (ULI) Asia Pacific Centre for Housing, Singapore’s private homes have surpassed Hong Kong’s as the most expensive in the Asia-Pacific region. The median price of Singapore’s private homes in 2022 was $1.2 million, compared to Hong Kong’s $1.16 million. Additionally, private rental homes in Singapore have the highest monthly rent in the region, at $2,600, far exceeding other cities like Sydney, Melbourne, and Hong Kong.
The report attributes Hong Kong’s drop in home prices to a significant increase in mortgage interest rates as the city follows the U.S. Federal Reserve. Hong Kong experienced an 8.7% decrease in median home prices from 2021 to 2022. In contrast, Singapore’s private home prices increased over 8% in the past year.
Singapore’s high home prices and rental rates are influenced by various factors, including an influx of migrants, a slowdown in building completion, and young professionals seeking more space and freedom. Despite the high prices, Singapore boasts the highest homeownership rate in the region at 89.3%.
Other cities in the Asia-Pacific region, such as Shenzhen, Beijing, and Hong Kong in China, have some of the lowest home attainability ranks, with high median home price to median annual household income ratios. Mainland Chinese cities have seen a substantial decline in homeownership rates over the past decade due to limited housing supply relative to population growth.
The findings highlight the ongoing challenges of housing affordability in major cities across the region and the need for sustainable solutions to address the growing demand for housing.
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