Population density rose 20% in just a decade.
According to the Singapore Social Health Project 2013, due to the rise in population density, housing and transport sectors are increasingly stretched. Commuter stress and cost of transport are on the rise.
It also noted that housing prices have also increased rapidly over the last few years and is becoming unaffordable, especially for the low wage earners.
The report highlighted 8 facts about Singapore's housing and transport:
1 Singaporeans are experiencing greater pressure in the arenas of housing and transportation, as population density rose 20% from 2001 to 2011. Things are likely to worsen for a little while more before they get better as new capacity comes on stream.
2 Commuting congestion generates stress. A sharp increase in population has raised the density of both road and public transport users, leading to greater commuting frustration. In a short span of three years from 2009 to 2012,the average daily passenger journeys on the mass transit rose by more than half a million (an almost 30% increase) and satisfaction in public transportation has steadily fallen to below 90% in 2012. A greater proportion of residents are also spending more time commuting.
3 Increasing transport cost raises costof living. The percentage increase in transportprices was among the highest in the years 2011and 2012, contributing to higher living cost. In the earlier years, monthly household spending ontransport rose by 2.5% from 2002/03 to 2007/08and formed almost 16% of monthly household spending in 2007/08. This increase was largelydriven by private transport cost.
4 Low accessibility among the low income. The average monthly spending on transport among the bottom 20% of households ($195) was 70% below the national mean ($695), suggesting that high transport costs may be a form of social exclusion for the poor, and may limit access to jobs and services.
5 The growth rate of housing prices is outstripping that of monthly incomes. From 2001 to 2011, the resale price index (RPI) increased at 7% per annum, whereas median monthly household income rose at 3.8% per annum.
In the recent five years, the cumulative increase in RPI was double that of median monthly household income.
6 Resale flats are not accessible to the bottom 20% of young home buyers. Based on optimistic savings estimates, a 2010 study found that young income earners below the 20th percentile do not have enough to afford the upfront payments of a resale flat. Those in the 30th percentile are barely able to afford the upfront payments of a 4-room flat.
7 Erosion of long-term housing affordability. Housing is generally considered unaffordable if mortgages make up more than 30% of income. The Housing Development Board (HDB) tracks housing affordability using the debt servicing ratio (DSR) that calculates the ratio of monthly household income to monthly housing instalments.
This is a conservative measure as it is based on a 30-year loan period and presently low interest rate. HDB reports that the DSR rose from 18% in 2007 to 24% in 2011.
The 2010 study mentioned earlier found housing affordability to deteriorate for all income groups at higher interest rates of 5% or 7%. It also found that in the 2010 housing resale market, prices exceeded 30% of life time incomes for the bottom 10%, with the exception of 1-room HDB resale flats that formed close to 30% of life time incomes.
8 Homelessness on the rise. The number of persons and families identified to be in need of shelter more than doubled from 2007 to 2010. Reasons that social workers and the Ministry of Social and Family Development cited include families’ inability to service bank loans on their flats; strained family relationships and loss of jobs.
*Article first appeared on http://sbr.com.sg/residential-property/news/8-awful-facts-you-must-know-...