According to a recent Urban Land Institute (ULI) research, Singapore has surpassed Hong Kong as the most expensive city in Asia-Pacific for renting and purchasing private properties. At the same time, Mumbai has been declared the most expensive city in India to rent or buy a house.
Mumbai’s Real Estate Business
The “2023 Asia Pacific Home Attainability Index,” published by the Urban Land Institute (ULI), gives information on the real estate market in numerous cities, including Mumbai and Delhi NCR in India. According to the report, Mumbai has the highest median housing price per square metre of any of the eight cities studied in India, at $3,383 (roughly Rs 2,78,466). The median price in Delhi NCR is $1,358 (roughly Rs 1,11,781) per square metre.
Singapore’s Real Estate Business
The ULI research offers valuable insights into the overall affordability of housing in cities around the Asia Pacific region. It is a snapshot that provides an idea of the housing scene in these locations and the obstacles that residents confront in finding acceptable accommodation.
Furthermore, the survey states that Singapore, the region’s city-state, has the highest rental rates. Private rental homes in Singapore have the highest monthly rent, reaching $2,600. According to the survey, this amount far exceeds rental prices in other major cities such as Sydney, Melbourne, and Hong Kong. The high rental prices highlight the housing expense hardship that individuals and families in Singapore endure.
Reason For Rise In Prices In Singapore
1. One key factor is the city-state’s large influx of immigrants. Population expansion has raised the demand for housing, causing prices to rise.
2. Another aspect is the growing propensity among young professionals to leave their family homes to desire more space and independence.
3. Furthermore, the government’s new action contributes to the price increases. The policy requires homeowners to serve a 15-month waiting period after selling their properties before they can purchase a non-subsidized Housing Development Board (HDB) resale flat. This requirement has influenced the market’s supply and demand dynamics.
4. The limited number of institutionally or independently owned rental properties has also contributed to the same. In recent years, disruptions in the supply chain of building supplies and labor caused by the Covid-19 epidemic have decreased new house supply.
5. According to the survey, the limited number of institutionally or independently owned rental properties has also contributed to increased rental costs. Furthermore, disruptions in the supply chain of building supplies and labor caused by the Covid-19 epidemic have decreased new house supply in recent years.
6. To sum up, a mix of factors such as immigration, changing lifestyle preferences, government policies, restricted rental property availability, and supply chain disruptions has contributed to Singapore’s significant increase in housing prices and rents.
Here are the other countries’ data in the findings of the report.
Australia
The research notes a drop in housing prices in Sydney and Melbourne, the country’s two largest cities. People have moved from Sydney to smaller provincial communities in search of perfect space due to the COVID-19 pandemic. This inflow has resulted in a housing shortage in the surrounding communities, limiting the availability of dwellings for existing residents.
China
According to the survey, mainland China’s tier 1 and tier 2 cities continue to have low housing attainability. Home prices in these cities are closely related to new home supply availability and population growth.
Hong Kong
Home prices in Hong Kong fell significantly in 2022, returning to 2017 levels. This fall can be ascribed to reasons such as population decline and an increase in mortgage interest rates.
Japan
Japan has the lowest median monthly rent relative to median household income compared to the other cities in the report. For example, the typical monthly rent in Osaka ranges from US$350 to US$602 in Tokyo. This is due to a significantly more significant quantity of available rental housing due to the country’s aging population and limited household formation.
To conclude, these findings provide insights into the housing market dynamics in many locations, including the impact of migration patterns, housing supply, population changes, and affordability levels.
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