Chart of the Day: See how crowded Singaporean homes have become

In the name of affordability.

Property prices have recovered since the Global Financial Crisis (GFC), while the median value of new home sales remained near the $1m level.

A report by CIMB indicates that with median size falling from average 1,200 sqft to the current 800 sqft, most buyers compromised on smaller units in order to keep the investment amount more affordable.

CIMB adds that the population has increased to a historically high level of 4.4, suggesting that there are now more people cramped under a single roof than before, implying a pent-up demand.

Here’s more from CIMB:

Based on our estimates, median home price to income ratio for both private and public housing is still below the highs seen during 2007 and 2010 as well as during the mid-1990s period as wages improve on the back of positive economic growth.

Mortgage installments as a percentage of monthly wages is at a low, due to the  still low interest rates environment. Even after taking into account the higher mortgage rate of 3.5%, used to assess homebuyers affordability under the TDSR limit, housing still remains relatively affordable.