Private property prices remain affordable for first-time buyers: REDAS
Private property prices remain affordable for first-time buyers: REDAS
By Julie Quek | Posted: 22 September 2010 2220 hrs
SINGAPORE : Private property prices in Singapore have remained at affordable levels to first-time home buyers despite the recent run-up in the housing market here.
The government's recent announcement of cooling measures also had little impact on affordability.
The Real Estate Developers' Association of Singapore (REDAS) said this may help boost prospects in the local property market.
These days, first-time buyers for private properties use about 36 per cent of their monthly take-home pay to service their housing loans every month.
REDAS said this is a healthy rate, as it is lower than the norm of 40 per cent.
Analysts agree, saying that a below 40 per cent affordability ratio means that housing prices are still affordable.
Back in 1997, during the peak of property boom, the affordability ratio went up to as high as 50 per cent.
This means that almost half of a home owner's salary would go into financing the mortgage, making it difficult for Singaporeans to buy a property.
"The level that we have right now of 30 to 40 per cent is pretty much in line with market. So today's market, there's no sense of panic. Properties are still fairly affordable," said Donald Han, MD of Cushman & Wakefield.
Analysts believe the improved affordability may continue to prop up sentiment in the property market and boost sales in the longer term.
They also believe the local property sector to perform strongly this year, with a total sale of 14,000 homes by December.
"I think 14,000 is definitely within the market reach, because there's still a lot of liquidity in the market," said Colin Tan, head of Research & Consultancy at Chesterton Suntec International.
Analysts also expect property prices to continue to increase in the long term. - CNA /ls
By Julie Quek | Posted: 22 September 2010 2220 hrs http://www.channelnewsasia.com/image.../phpXjPbUg.jpg
SINGAPORE : Private property prices in Singapore have remained at affordable levels to first-time home buyers despite the recent run-up in the housing market here.
The government's recent announcement of cooling measures also had little impact on affordability.
The Real Estate Developers' Association of Singapore (REDAS) said this may help boost prospects in the local property market.
These days, first-time buyers for private properties use about 36 per cent of their monthly take-home pay to service their housing loans every month.
REDAS said this is a healthy rate, as it is lower than the norm of 40 per cent.
Analysts agree, saying that a below 40 per cent affordability ratio means that housing prices are still affordable.
Back in 1997, during the peak of property boom, the affordability ratio went up to as high as 50 per cent.
This means that almost half of a home owner's salary would go into financing the mortgage, making it difficult for Singaporeans to buy a property.
"The level that we have right now of 30 to 40 per cent is pretty much in line with market. So today's market, there's no sense of panic. Properties are still fairly affordable," said Donald Han, MD of Cushman & Wakefield.
Analysts believe the improved affordability may continue to prop up sentiment in the property market and boost sales in the longer term.
They also believe the local property sector to perform strongly this year, with a total sale of 14,000 homes by December.
"I think 14,000 is definitely within the market reach, because there's still a lot of liquidity in the market," said Colin Tan, head of Research & Consultancy at Chesterton Suntec International.
Analysts also expect property prices to continue to increase in the long term. - CNA /ls
