HDB affordability

Mortgage to annual salary ratio of 30% - not a good indicator
Bcos pple who cannot afford flats are not captured

Also loan tenure is 30 yr
About 56% of all HDB buyers take 30 yr loan

Price to income ratio
4 rm
2000 4.7
2009 5.5

5 rm
2000 5
2009 5.6

Global average 7-9x

HDB flats have become less affordable in the past 9 yrs but still more affordable vs global average.

Who is driving up HDB prices?

PR buys 20% of all HDB resale flats

23,000 HDB flats are rented out illegally (est)

Salary: Singapore vs Asia Pacific

Pakistan 9.6%
Vietnam 8.5%
India 8%
Singapore 2.8% (No.7 out of 19)
HK 2.3%
NZ 2.2%
Japan 1.9%
Average 4.8%

Salary freeze ratio
2009 50%
2010 16%

Resignation rate
2008 16.7%
2009 6.2%