Home price hikes loom amidst improvement in housing affordability: RHB

Household income growth (4%) outpaced the 1.2% rise in property prices.

Singapore's price-to-income ratio, a "good' parameter to judge the current affordability of homes, has improved has shown positive development since 2010, RHB Research said in a report.

This particularly reflects the continued improvement of household income, which has grown by a CAGR of 4% over the last 10 years. By comparison, the median property price has grown by a CAGR of 1.2% over the same time period.

Given improved affordability, the brokerage thinks there is room for price increase. "As demand recovers, there is scope for developers to raise prices before they become unaffordable. Even by international standards, Singapore’s price-to-income ratio is more favourable to the likes of big cities such as London, Tokyo and Hong Kong," it said.

Behind the demand recovery is the improving job market and low-interest rate environment. "With the labour market tightening, wage pressures have started to build up. Meanwhile, Singapore's housing loan rate (calculated by the average of 10 finance companies) is among the lowest on record," RHB Research added.

This is despite various pre-emptive measures to reduce demand and speculative behaviour. The Total Debt Servicing Ratio (TDSR), Seller’s Stamp Duty, and Additional Buyer’s Stamp Duty are still in place.

"These measures have been successful in curbing the influx of overseas money. Yet demand from Singaporean buyers remains the primary driver of the private residential market's recovery. The proportion of domestic purchases increased to 75% in 2017 from 64% in 2011," RHB Research said.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia