Business Times - 11 Oct 2005
S'poreans invest total of $359b in HDB flats
Some 93% of HDB dwellers own or about to own their flats:
research
By ALEXANDRA HO
AND ARTHUR SIM
THIS nation of property owners has $359 billion invested in their
HDB flats, according to the latest figures from a research paper
released by the Singapore Department of Statistics (SDS).
And 93 per cent of HDB dwellers own - or are buying - their own
flats, the figures show.
The research paper reveals that the average home equity of
households residing in their own HDB flats was $154,000 in 2003.
This is 3.3 times the average annual household income of
$46,800.
Home equity, as defined by the Department of Statistics, is the
estimated value of the flat after deducting the outstanding loans
from the HDB.
The SDS also found that the equity-to-income ratio was highest for
those in the lowest 20 per cent of households, at 9.8.
Of the homeowners in the least well-off 20 per cent, 71 per cent
had equity of at least $100,000 in their flats, which compares with
the 72 per cent for other income groups.
In fact 7.8 per cent in the least well-off 20 per cent had equity
exceeding $250,000 in their flats.
In the middle income group, which makes up 60 per cent of HDB
households, 15 per cent had equity exceeding $250,000. In the top
20 per cent income group, the figure is 22 per cent.
On average, home equity for HDB flat owners in the lowest 20 per
cent households was estimated to be $138,000.
For those who owned three- and four-bedroom flats, the average
equity was about $110,000 to $150,000. The national average is
$154,000.
These figures compare favourably to the HDB household survey
results released in June which showed that the average household
income of those living in one- and two-room flats had dropped. This
is despite the fact that HDB dwellers were, in general, better
off.
According to the SDS, around 11 per cent of those in the lower
household income group live in one- and two-bedroom flats.
The home ownership rate was high for households with younger heads.
Even among the lowest 20 per cent, more than 90 per cent of those
aged under 55 years owned their flats.
In comparison, households headed by those over 55 had slightly
lower home home ownership rates (88 per cent).
The statistics show that 47 per cent (or $359 billion) of total
assets in the household sector was invested in residential
property.
