Singapore households have been termed as one of the richest in asia and have been given a clean bill of health. Despite warnings of an inceasing exposure to mortgages, net wealth from property prices has grown significantly over the past decade. This is in accordance to data from the Monetary Authority of Singapore.
Property Prices in Singapore
According to a research report, household debt in Singapore continues to rise wherelse cash savings increases. The situation has come to a point where cash savings have outweigh liabilities. It is also noted that household debt remains a large portion of Singaporean liabilities. The MAS also noted that some households are on the verge of overstretching themselves on property prices loan and these households might difficulties in repaying their loans should interest rate increases. A statistic has indicated that household net wealth has grown at an average of 9.1 percent per annum in the past 10 years. Property assets account for a large share of household wealth and the steady rise of property prices has fueled the increase in household wealth over the past 10 years.
Even thought debt has raisen, the growth of liquid assets such as cash and cash deposits have also risen and the total amount of cash deposits exceeds household debts by 10 percent. It is also noted that profits make from properties in the past few years also contributed to household wealth and this accounts for a huge portion of the cash available to Singaporean households.
However, it is noted that that the low interest rate environment could change the game as household debts might rise due to the increase in interest rates. However, we should see good reponse to The Hillford Condo as the rental yield of the development is very high and the property prices of the units is very low.