Affordability of Current Private and Public Housing Compared to Five Years Ago

38 Ms Foo Mee Har asked the Minister for National Development how does the affordability of current private and public housing compare with that of the previous five years and with that of other leading international cities.

Mr Lawrence Wong: In the past five years, affordability in both the private and public housing markets has improved. Between end-2012 and end-2017, the median resident household income grew by 18.5%, whereas the prices of private residential properties, as reflected by the Urban Redevelopment Authority's (URA's) Property Price Index, decreased by 8.4%. In the public housing market, the Housing and Development Board (HDB) Resale Price Index decreased by 9.6% over the same period. Enhancements to housing grants have also helped to improve affordability for both resale and new HDB flats.

Based on the 2018 International Housing Affordability Survey by Demographia, the ratio of median residential property price to median annual household income was 4.8 for Singapore, as compared to 5.7 for New York, 8.5 for London, 12.9 for Sydney and 19.4 for Hong Kong.

In recent quarters, we have seen a recovery in the private property market, while the HDB resale market has remained stable. We will continue to monitor market conditions closely and will not hesitate to act when necessary to ensure a stable and sustainable property market.