Why concerns over housing affordability linger despite homes being generally affordable

Singapore has a high level of homeownership, and housing affordability appears to be good. Still, affordability concerns linger, perhaps for good reasons.

In the first half of 2022, 90 per cent of buyers who collected the keys to their new Housing and Development Board (HDB) flats in non-mature estates had a mortgage servicing ratio of 25 per cent or lower for their HDB loans. This was also the case for over 80 per cent of buyers who collected the keys to their new flats in mature estates, according to the HDB.

These flat buyers can service their HDB loans using their monthly Central Provident Fund (CPF) contributions, with little or no cash outlay. The HDB said the median home price-to-income ratio for all buyers who collected the keys to their new flats over the same period was four or below.