At the PropertyGuru Asia Real Estate Summit, David Chong, chief operating officer of REHDA Institute, provided an in-depth look at the ongoing challenges of housing affordability in some of Asia’s most densely populated cities.
Chong discussed how the delicate balance between income levels, market supply, and government policies shapes the real estate landscape in cities like Singapore, Hong Kong, Kuala Lumpur, Bangkok, and Jakarta. In these megacities, the ideal target is for housing costs—whether rent or mortgage payments—not to exceed 30% of monthly income.
Chong explained that factors such as land availability, bank interest rates, and government initiatives can either help or hinder affordability. Successful models like Singapore’s HDB scheme, while often seen as the gold standard for affordable housing, come with a financial burden for the government, making it a complex system to replicate elsewhere.
Ultimately, the key to addressing housing affordability lies in aligning government policies with developer partnerships and ensuring balanced market conditions to meet rising urban demand.
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