Singapore Households Grow Wealthier Despite Rising Property Debt
- Megan Soo
- Sep 27
- 2 min read
Introduction
With property prices continuing to be a hot topic in Singapore, many homeowners and potential buyers are wondering: are we taking on too much debt? Recent data from the Department of Statistics offers some reassuring insights. While Singaporean households have indeed increased their borrowing - particularly for property purchases - the overall financial picture tells a more positive story. Here's what the numbers reveal about household financial health and what it means for your own financial planning.
The Good News:
Your household is likely in a stronger financial position than before. Even though you may have taken on more debt (like home loans), your assets have grown even faster. This means your overall net worth has improved - you own more valuable things relative to what you owe.
What's Happening with Home Loans:
Singaporean households are borrowing more for property, but this isn't necessarily alarming. Home loan growth has been steady at around 2-4% annually, which analysts consider manageable. The key metric they watch - how much of your income goes to servicing all debts - has actually improved from 79.5% to 80.3%, and is well within the healthy range of 55-65%.
Why This Matters to You:
Affordability is getting better: Even though property prices have risen, lower interest rates and slower price growth in 2025 are making homes more accessible
You're not overextended: Unlike some other countries where households owe massive amounts relative to their income, Singapore households maintain reasonable debt levels
Your borrowing capacity remains strong: The financial system can handle current debt levels, and there's room for continued sustainable borrowing
The Bottom Line:
While you might be carrying more debt than before (especially if you've bought property), you're also wealthier overall. The system appears healthy, and affordability is actually improving going into 2025. The analysts see this as sustainable growth rather than dangerous over-borrowing.
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