Skip to content

Singapore Home Affordability to Get Worse for First-Time Buyers

  • Rising prices, interest rates to squeeze buyers, Moody’s says
  • Trend is negative for Singapore’s covered bond market

Singapore’s housing affordability will deteriorate further in the coming year, due to the double whammy of rising prices and interest rates, according to Moody’s Investors Service.

First-time private home buyers in August needed 19.4% of their average monthly household disposable income to cover monthly mortgage repayments on new loans, up from 17.3% in December 2021, Moody’s analysts said in a report Tuesday. The measure will worsen over the next 12 months because gradual gains in incomes won’t be enough to offset increases in home prices and interest rates, they added.