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Sizing up the Singapore housing market

20 Jan, 2020


Sizing up the Singapore housing market

A first-of-its-kind study by UrbanZoom, an artificial intelligence (AI) driven auto-valuation platform for real estate, has valued the housing market in Singapore, comprising 1.2 million HDB units, 350,000 condominium apartments and 80,000 landed homes at S$1.43 trillion. This was done by amassing data sets from public and private sources, and using AI to run an algorithm unit by unit, for both completed homes and those under construction, and adding their values together. − LEE MEIXIAN

The study also found (PSF) VALUE BY HOUSING TYPE that S$57 billion of condominium properties are under construction or announced for future sale, adding to the existing condo housing stock worth S$539 billion. In contrast, only S$25 billion of HDB units are under construction in the Build-to-Order programmes, adding to the existing HDB housing stock worth S$500 billion.

We don't quite see the full 80/20 Rule or Pareto Law here, with the most expensive 20 per cent homes accounting for just 57 per cent (S$818 billion) of the entire housing stock. This is a testament to the success of the HDB programme, which has provided a substantial asset base for the middle to lower-income households here. – UrbanZoom founder, Michael Cho

From a value perspective, the upcoming supply of condominium units is significant, contributing more than 10 per cent to existing stock, while upcoming BTOs in HDB represent a more manageable 5 per cent new stock coming online. – Mr Cho


Singapore S$491b S$1.43t 2.9x
United States US$20.5t US$33.3t 1.6x

Singapore’s high gross savings rate, at 48 per cent versus US’s 17 per cent, and high ownership, at 91 per cent versus US’s 65 per cent, coupled with the local population’s affinity to property, likely contributed to the high multiple of the nation’s household wealth being accrued to and manifesting in the form of residential real estate assets. – Mr Cho

Another way to make sense of this data is to compare the current value of the entire housing stock against outstanding housing loans. According to the latest figures from the Monetary Authority of Singapore and HDB, the combined utilised housing loans from banks and HDB add up to S$245 billion. This represents a very healthy look-through loan-to-value ratio of merely 17 per cent, or a net equity position of S$1.19 trillion. – Mr Cho

Adapted From The Business Times, Jan 20 2020