Seriously, Singapore houses are still cheap

Quit complaining: housing affordability is at 36% compared to more than 60% during the Asian financial crisis.

Houshold affordability is based on the average disposable income level measured as the ratio of
monthly mortgage payment to household disposable income,

According to UOB Kay Hian, the 36% level is comfortable compared with the long-term level of 48% and the stretched level of 60-70% in 1996-97.

Although median prices of condos have surpassed the peak levels, UOB said that affordability is still at comfortable levels predominantly due to the extremely low interest rate environment and strong growth in median income in 2011 (+11%).

"SIBOR rates in Singapore are at an historical low of 0.39% compared with the 15-year average of 2.2% and peak levels of 6-7% during the Asian financial crisis (AFC). With interest rates likely to remain low till end-14, we believe affordability levels are unlikely to creep above alarming levels," it said.

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.


The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.


So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.