The report provides an overview of housing affordability in 45 cities across nine Asia -Pacific countries, including: Australia, China, India, Indonesia, Japan, the Philippines, Singapore, South Korea and Vietnam.

According to the report, the average price to own a private home in Singapore in 2022 is $1.2 million, while in Hong Kong (China) it is $1.16 million. Rental prices in Singapore are also the most expensive in the region, at about $2,600/month, far exceeding other cities such as Sydney, Melbourne and Hong Kong.

The report asserts that Singapore has surpassed Hong Kong to become the most expensive place to live in the Asia-Pacific region, with average private sector home prices rising more than 8% in 2022. In terms of affordability, the average home price in Singapore is 13.7 times the income of a middle-class household.

A corner of Singapore city with modern and luxurious houses. Photo: CNBC

The rising house prices in the Lion City are due to various factors such as the increase in immigration, the trend of young, successful people moving out to live on their own, wanting more space and freedom. In addition, the shortage of supply and the increase in construction costs during the pandemic have also pushed up house prices and rents.

The Singapore government has tried to tackle rising home prices with a series of measures to stabilise the market. A package of measures introduced in April included raising taxes on second home buyers and doubling the tax rate on foreigners from 30% to 60%.

The Singapore government is concerned that the influx of wealthy foreigners buying property will cause house prices to rise sharply. "If left unchecked, prices could run ahead of economic fundamentals, leading to the risk of house prices rising continuously relative to incomes," the Singapore government said.

GIA HUY