Singapore population density
Many people regard Hong Kong as one of the countries with the highest population density in the world. To a large extent, that is absolutely true. Based on their population of 7,182,724 (July 2013 estimate) and their land size of 1,054 square kilometres (sq. km), the population density works out to be 6,815 residents per sq. km!
However, did you know that Singapore has a much higher population density?
Our 5,460,302 strong population is packed into a mere 687 sq. km land size which means that for every square kilometre, there are 7,948 people! Based on worldwide statistics, Singapore is currently ranked the third most densely populated country in the world, followed by Hong Kong at a close fourth. The top spot for population density goes to Macau with 20,069 residents for every square kilometre.
It is no wonder that the Singapore Government has ongoing plans to increase land size via reclamation to avoid claiming the crown from Macau. Land scarcity is a very real problem for Singapore which explains the ever-increasing land costs and property prices which are driven by pent up demand.
Is 6.9 million too much?
At the projected 6,900,000 population by year 2030, Singapore will hit an approximate of 10,044 residents for each square kilometre.
That is a huge number of people!
There are vacant homes in Singapore?
Strangely enough, even with the high population in Singapore today, there are still unoccupied houses in Singapore!
Vacant units reflect the property rental market directly. Generally the higher the vacancy rates, the weaker the rental market.
It is also interesting to note that executive condominiums (ECs) have the highest vacancy rates (10.38%) among the different private property categories.
Perhaps there is a disparity between the price expectations of EC owners and their prospective tenants.
Average household size
Did you also know that the average household size of families in Singapore is a mere 3.53? (In 1990 it used to be 4.25)
Shrinking household sizes affect the property market in a couple of ways.
* Developer new launches are offering a greater number of smaller units to cater to this trend.
Developers are aware of this trend and will likely continue to offer more “shoe-box” and smaller-sized units in their new launches which are more affordable to the average buyer in Singapore.
* Demand for larger-sized units will decrease.
Developers are less likely to build condominium units with a larger square footage as it will be too high in terms of price quantum and generally not well-received by buyers.
How many houses does a 6.9 million population require?
Currently, there are about 1,342,155 completed residential units in Singapore. Based on the average household size of 3.53, these completed units cater to approximately 4,737,808 residents. However this number is not entirely accurate yet as we have to discount the number of Work Permit Holders (Foreign Domestic Worker and Construction) who have their own accommodation. They add up to a combined total of 517,500.
As stated earlier, the current population of Singapore at July 2013 is 5,460,302. This suggests that in the current market, there is still a strong demand of approximately 204,994 residents in search of properties to rent or buy.
By 2030, a projected 6.9 million people will reside in Singapore and assuming that the average household size remains the same, 1,954,675 residential units will be needed to cater to the housing needs of the population.
Will property prices rise even further in 2030?
Absolutely!
As most of you may know, Singapore and Hong Kong are often compared due to the similarities between both countries. Both are world-renowned financial hubs in their own right sitting on a relatively small island with a burgeoning population.
However, there is one glaring aspect that Singapore sorely lags behind Hong Kong: Property prices.
This disparity presents us with a great opportunity to hunt for good bargains especially whilst the Singapore property market is still adjusting to the slew of cooling measures introduced by the Government. I would recommend starting your search for undervalued properties such as Bartley Ridge.
Cheers and have fun searching!
