What is the HDB property market like for 2010?

Property Market

At SmartLoans, we receive enquiries and questions regarding housing loan affordability on a regular basis; at least 3 times a day. Customers usually want to find out how much of loan they are eligible for so that they can estimate their budget on buying property.

Typically for HDB properties, the minimum criteria of buyer who is looking to purchase a flat, has to have a household income of at least $2,500. Based on HDB today, a new 4-room flat averages $265,000 as compared to $150,000 ten years ago.

The Department of Statistics put the median income for a resident household at $4,950, a 36 percent increase from a decade ago.

The typical monthly payment for a housing loan is 23 per cent of the household income. It is below the 30 percent benchmark of debt service to income ratio that HDB and real estate academics peg to be the international standard for housing affordability.

Even at the higher household income of $8000 a month, you can afford to buy a $660,000 resale flat at the 30 per cent benchmark.

Real estate experts at the National University of Singapore also point out that the quality and attributes of flats have also risen from year 2000 and buyers cannot expect to pay the same prices for improved home designs and upgraded surrounding environment.

Property prices have definitely risen, reflecting the growth of Singapore's economy in the last decade and also due to the demand by new permanent residents (PRs) and citizens.

Information extracted from The Straits Times