In a Covid year, new condos' price-income ratio widens

Ratio captures rising prices against first decline in household income in over a decade; mortgage rates are inching up globally

Fiona Lam

Published Tue, Mar 16, 2021 · 05:50 AM

Singapore property

Singapore

LIKE several countries across the world, Singapore has seen private housing prices move higher in spite of a global pandemic.

Given this, fresh data shows that the gap between incomes and prices of private non-landed homes continued to widen in 2020.

Specifically, the gap - known as an "affordability ratio" - between prices of new condominiums sold and household income continues to be at its widest in a decade, The Business Times' analysis of data from Knight Frank, Colliers International, OrangeTee & Tie, Urban Redevelopment Authority and Department of Statistics (DOS) showed.

The analysis uses median property prices covering all land tenures and locations in Singapore, excluding executive condominiums (ECs).To get these prices, the median per square foot (psf) price is multiplied by 1,000 sq ft, which is the methodology used by Knight Frank. Median annual household income is der…