As Singaporean population ages, home prices here may see a 30 per cent drop by 2040, a study predicts. But analysts reckon investment and immigration flows will support prices, mitigating the effect of ageing.
Property prices in Singapore could see a 30 per cent fall by 2040, as the population ages and old-age dependency ratio rises, a recent study by the National University of Singapore’s Institute of Real Estate Studies found.
It covered 12 Asian, five South and Central American and 18 European economies. In countries like Singapore, Hong Kong and Korea, researchers expect the old-age dependency ratio – defined as the proportion of the elderly to the working-age population – to rise from between 10 to 20 per cent, to between 40 and 60 per cent in the next 30 years.
This would send home prices down by 50 to 60 per cent, it predicted. But because of an expected population surge in Singapore, property prices will only drop by 30 per cent here.
Analysts told The Business Times that the study under-accounts for immigration and off shore demand, and Singapore’s position as an investment hotspot.
If you enjoyed this article, you might be interested in Singapore’s latest population demographics: what it means for housing and The raised Buyer’s Stamp Duty won’t stop the property market’s momentum.
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