The Reality of our Housing Market

There will be a price to pay for the relentless pursuit of GDP growth with easy immigration

The reality is today our younger generation are increasingly squeezed out of the property market. The housing boom benefits landowners and business owners but not ordinary consumers and home buyers with genuine needs. Singapore’s current Property Price to our disposable income is hardly affordable. Coupled with easy finance, ultra low interest rates, high inflation and huge speculative funds flowing into the real estate market, it’s no wonder it’s looking more and more like a bubble.

The richer the country, the lower the fertility

Singapore has one of the Lowest Total Fertility Rate in the world among developed nations. Maybe that is also the reason why Singapore has one of the highest GDP per capita income in the world. When housing cost is high, dating couples delay marriage and married couples do not consider having children. Couples buy smaller homes to keep mortgage finances manageable in pursuit of personal career advancement and material well-being, in turn sacrificing procreation.

The Singles market is a growing social demographic and an emerging middle class but at the same time, if more choose to remain single because of high cost of housing then it may just become a social economic time bomb.

It’s a dilemma. The more we earn, the less babies we have. Maybe there is a close correlation of high property prices to low fertility rate.

Low Fertility Rate = High GDP growth + High Population Density + Influx of Foreign Talents + High Property Prices

10 years ago a 4 room flat would cost at most $100,000
10 years ago a 4 room flat would cost at most $100,000