According to a recent research by the Urban Land Institute (ULI) Asia Pacific Centre for Housing, Singapore now has the most costly private dwellings in the Asia-Pacific region, surpassing Hong Kong.
According to data from the Home Attainability Index, Singapore’s private residences’ median price rose to $1.2 million in 2022, surpassing Hong Kong’s median price of $1.16 million.
The research also noted that, with an average monthly rent of $2,600, private rental properties in Singapore were the most expensive in the area. Compared to rental prices in major cities like Sydney, Melbourne, and Hong Kong, this amount was much greater.
The ULI research evaluated housing attainability in terms of ownership and rents in relation to household median wages by analyzing official information from 45 cities in nine markets in the Asia-Pacific region.
The drop in Hong Kong’s housing prices during 2022 was ascribed to the U.S.-style big rise in mortgage interest rates. the stances of the Federal Reserve. Home prices in Hong Kong hit a five-year low in October as a consequence of increased borrowing costs brought on by interest rate rises.
Following the U.S. central bank’s adjustment of the fed funds rate to 5% to 5.25%, Hong Kong’s monetary authority recently increased the base interest rate to 5.5%.
The typical house price in Hong Kong decreased by 8.7% between 2021 and 2022, from $1.27 million to about $1.16 million. The ULI research listed factors including a net outflow of people and a less hopeful attitude on the local real estate market as culprits.
The median house price in Singapore increased by 8% over the previous year, making it the most expensive real estate market in the Asia-Pacific region.
The ranking change between Singapore and Hong Kong is a reflection of the region’s dynamic real estate markets, which are impacted by elements including interest rates, market mood, and governmental policy. Market watchers will keep a careful eye on these trends as property values continue to change, as well as how they affect market stability and home affordability.
