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23/09/2021
Survey, Blog Post, Trends, Perspectives

Housing in Singapore: Is home affordability under threat?

Singapore housing

There is a global housing crisis that has been exacerbated by the COVID-19 pandemic through 2020-2021.

Bloomberg recently reported that “soaring property prices are forcing people all over the world to abandon all hope of owning a home. The fallout is shaking governments of all political persuasions.”

In Singapore, the Business Times reported this month that “In the first five months of the year, a record 87 public apartments were resold for at least S$1 million.”

This has caused many people to gasp at the number of HDBs now changing hands for big prices.

While Singapore has prided itself on public housing ownership throughout its history, questions are arising: is the dream of home ownership in Singapore beginning to fade for future generations?

Community data reveals that while there is no immediate crisis in Singapore, there are some signs that public sentiment is in flux on this issue:

  • Blackbox’ YKA Government Satisfaction Index shows confidence in the Government on home affordability has slipped 4 points in the last 12 months from 72% to 68%;
  • 35% of Singaporeans are negative about the state of the housing market but those under 35 are more negative;
  • 84% of those who are negative say their main reason for this is that they believe the housing market is becoming too expensive/unaffordable;
  • And 64% of Singaporeans believe now is a bad time to buy a property in Singapore.

Recent Blackbox polling also suggests Singaporeans are keen on more Government intervention at this time:

  • 88% say the Government should be doing more to assist first-time home buyers; and
  • 82% say the Government should impose more restrictions on foreigners buying homes and properties in Singapore

With the BTO and wider property market currently enduring construction challenges arising from COVID-19 restrictions, there is reason to believe upwards pressure will remain on house prices in the near future.

While Singapore still does not suffer from the same price-to-income imbalance as Hong Kong, Sydney, or London, it is now on a par with Tokyo. This was inconceivable 20 years ago.

Housing is beginning to shape up as a major ongoing political issue for Singapore as it continues its rise as a key global city of the twenty-first century.

Author: Blackbox Research Team

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