{"id":122593,"date":"2021-10-15T00:29:35","date_gmt":"2021-10-14T17:29:35","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-no-longer-a-stable-nest-egg\/"},"modified":"2021-10-15T09:12:31","modified_gmt":"2021-10-15T02:12:31","slug":"property-no-longer-a-stable-nest-egg","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-no-longer-a-stable-nest-egg\/","title":{"rendered":"Property no longer a stable nest egg"},"content":{"rendered":"


\nProperty no longer a stable nest eggHousing affordability is predicted to worsen as enduring WFH arrangements force homeowners to buy larger homes, and price-to-income ratios achieve multi-year highs.
\nThe latest research by DBS showed that investing in property for retirement funds is no longer as financially stable as before, reported Singapore Business Review (SBR).
\nThis comes as housing affordability is forecasted to worsen due to work-from-home arrangements, which leaves homeowners little choice but to opt for bigger homes. Additionally, price-to-income ratios are expected to hit multi-year highs.
\nRelated article:\u00a0Singapore Work From Home Culture Is Changing How We Shop for Homes in 2021
\nThe research found that the pace of growth of property prices has outrun that of salary and gross domestic product (GDP). In the past, this means purchasing smaller homes with higher prices on a per sq ft (psf) basis.
\nBut with the work-from-home arrangements, this means a shift to bigger houses, with more households embracing dual incomes to achieve more financial flexibility.
\nMoreover, a changing demographic is expected to affect the overall demand for residential properties. Factors such as tighter manpower policies and an ageing population are predicted to affect the expected rental yield and longer-term demand for homes.
\nCertain groups of consumers were found to be facing challenges in retirement planning and housing affordability.
\nThe DBS data indicates that those earning a monthly income of up to $5,999 and those within the 30 to 49 age group are the most stretched. Based on the research, this age group also has the lowest propensity to invest.
\nOn the other hand, private property owners within the 30 to 39 and 40 to 49 age groups were found to have higher mortgage-to-income ratios. Those in the 30 to 39 age group had an average ratio of 0.27, or 19% to 46%. In comparison, those in the 40 to 49 bracket had an average ratio of 0.26, or 19% to 39%.
\nWith high acquisition costs making property less attractive, DBS advised consumers to focus on increasing their net worth with a diversified investment portfolio.\u00a0
\n\u201cWhile consumers can regard their primary property as a retirement asset and a component of a holistic financial plan, they should keep in mind that diversification is key and the right mix of assets can help to maximise the risk-reward from their investments,\u201d said Lorna Tan, Head of Financial Planning Literacy at DBS Bank, as quoted by SBR.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg.\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Property no longer a stable nest egg<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Property no longer a stable nest eggHousing affordability is predicted to worsen as enduring WFH...<\/p>\n","protected":false},"author":1,"featured_media":122594,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-122593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/10\/HDB-flat-Singapore.jpg?fit=820%2C411&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vTj","jetpack-related-posts":[{"id":121669,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-housing-affordability-to-slightly-worsen-amid-price-hikes\/","url_meta":{"origin":122593,"position":0},"title":"Singapore housing affordability to slightly worsen amid price hikes","date":"August 26, 2021","format":false,"excerpt":"\r Singapore housing affordability to slightly worsen amid price hikesDespite increasing property prices, housing affordability in Singapore is likely to remain\u00a0sound. With low interest rates offsetting the impact of increasing property prices, Moody\u2019s Investors Service expects housing affordability in Singapore to worsen slightly, but remain sound over 2021 to 2022,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/08\/HDB-flat-Singapore-1.jpg?fit=820%2C411&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":41873,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/this-has-been-the-worlds-least-affordable-city-for-seven-years-in-a-row\/","url_meta":{"origin":122593,"position":1},"title":"This has been the world\u2019s least affordable city for seven years in a row","date":"January 25, 2017","format":false,"excerpt":"\r A slightly less expensive encore after a record 2015 Hong Kong SAR at night. cozyta\/Shutterstock Hong Kong has topped the 13th edition of Demographia\u2019s annual housing affordability survey, marking seven consecutive years of unbeatable home price to income ratios. It received a \u201cseverely unaffordable\u201d mark from the research house\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":75044,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/spore-homes-cheaper-compared-to-those-in-other-major-markets\/","url_meta":{"origin":122593,"position":2},"title":"S\u2019pore homes cheaper compared to those in other major markets","date":"December 21, 2017","format":false,"excerpt":"\r Residential prices here are more affordable compared to many major markets across the world, reported the Singapore Business Review. In fact, a report from JLL showed that a family only needs to spend 4.8 years\u2019 worth of their income to purchase a typical property in 2016 versus 7.3 years\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":52161,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/buy-homes-during-downturns-research-suggests\/","url_meta":{"origin":122593,"position":3},"title":"Buy homes during downturns, research suggests","date":"April 18, 2017","format":false,"excerpt":"\r \u00a0 The supply of residential properties in the United Kingdom is unlikely to be enough to the point of making it more affordable for young adults, reported The Telegraph, citing a research presented at the 2017 Royal Economic Society Annual Conference held in 10-12 April 2017. \u00a0 The general\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14958,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/affordable-home-shortage-in-saudi-arabia-likely-to-worsen\/","url_meta":{"origin":122593,"position":4},"title":"Affordable home shortage in Saudi Arabia 'likely to worsen'","date":"May 31, 2016","format":false,"excerpt":"\r A shortage of \"affordable homes\" in Saudi Arabia is likely to become more acute as a global lull in oil prices forces the government to cut back on projects.According to property broker Knight Frank, budget cuts prompted by the oil price crash are prompting the country's Ministry of Housing\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":112446,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-home-sales-drop-27-in-october\/","url_meta":{"origin":122593,"position":5},"title":"Private home sales drop 27% in October","date":"November 18, 2019","format":false,"excerpt":"\r However, the sales figures still show an\u00a084.9% increase compared to a year ago. New private home sales in Singapore fell 27% in October from September, reported Channel News Asia, according to data released by the\u00a0Urban Redevelopment Authority (URA). 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