A regional survey by iProperty has found that Singaporeans are concerned about affordability of housing given that HDB prices have doubled in the last seven years.
Low global interest rates and high liquidity in the asset market have driven property prices up, according to the iProperty survey report.
The report states that “72% of respondents think that foreigners have a part to play in driving up property prices,” elaborated iProperty Group’s Chief Executive Officer, Shaun Di Gregorio.
Forty three per cent feel the Government is not delivering enough housing to soak up the demand from foreigners. This is despite the fact that foreigners’ proportion of private home transactions have slipped downward as shown in the response before this.
Sixty per cent want more steps to cool the property market. The government agrees to this sentiment as Singapore’s central bank has introduced rules to ensure that a property buyer’s monthly payments do not exceed 60% of income.
There are also concerns that any hike in interest rates may lead to a sharp rise in mortgage defaults in Singapore. The gross rental yields in Singapore are also very poor, ranging from 2.58 per cent to 3.01 per cent, which increases the risk of default.
Download the full report here