Singapore’s Hdb Flats And Melbourne Apartments Lead Region Home Ownership Attainability Uli
According to a recent market report on the affordability of homes in the Asia Pacific region, HDB flats in Singapore and apartments in Melbourne are the only two residential markets where homes can be purchased for less than five times the median income. The report, titled “ULI Asia Pacific Home Attainability Index” and published by the Urban Land Institute, examines the affordability of housing in each market where median home prices are less than five times median annual income. Rent affordability is also considered, with the benchmark being median monthly rents no higher than 30% of median monthly income.
In Singapore, the median price of HDB flats in 2024 was 4.3 times median annual income, while private home prices were 16.9 times median annual income. However, the report highlights a slowdown in the number of completed HDB flats entering the market in recent years, resulting in a decrease in overall attainability compared to 3.7 times median annual household income in 2022.
The issue of rising HDB resale flat prices and the increasing number of resale flats transacted at over $1 million was raised during the country’s recent general election. In response, the government has implemented policies to address these concerns, including increasing the supply of new HDB flats over the next two years and offering more subsidies for middle- and lower-income buyers.
Other cities mentioned in the report include Hong Kong, where apartments were 23.4 times the median annual household income in 2024, an improvement from 26.5 times in 2022. However, rental affordability in Hong Kong has worsened, with rent costing 72% of median monthly income in 2024, up from 70% in 2022 and 69% in 2023. The influx of mainland Chinese professionals into Hong Kong is one factor contributing to this situation, with authorities approving about 92,000 applications under the Top Talent Pass Scheme by the end of last year. Additionally, locals in Hong Kong have chosen to rent, as falling apartment prices and higher interest rates have caused many to hold off on purchasing a home, in anticipation of further price decreases and a more stable economy.
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Meanwhile, the aftermath of China’s housing bubble collapse in 2021 continues to have an impact. Price-to-income ratios remain significantly high, ranging from 10 to 23 times in major cities. In March, there was an excess of 421.58 million sqm of unsold commercial housing stock, equivalent to about four to six million residential homes, according to data from ULI. This number does not even include distressed assets like mortgage defaults and unfinished projects.
Research by ULI suggests that larger cities may eventually absorb the surplus supply, while smaller cities will face more difficulties due to weak demand, struggling local economies, and stagnating populations.