A sudden spike in interest rates has also added to the financial burden of homeowners, pushing many to the brink of mortgage payment anxiety
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SINGAPORE: A recent annual financial wellness survey conducted by OCBC has revealed alarming statistics regarding Singaporeans’ concerns over housing affordability and mortgage payments.
According to the survey, 56 per cent of Singaporeans in their 20s expressed deep concerns about their ability to afford a home, reflecting the challenges many young adults face in the city-state’s competitive real estate market.
The survey, which assessed the financial well-being of individuals across various age groups, highlighted growing apprehensions among Singaporeans, particularly those in their 20s.
The broader picture painted by the survey is equally concerning, with 38 per cent of all Singaporeans expressing worries about their ability to afford a home. This figure represents a significant increase in housing affordability concerns compared to previous years.
Another alarming revelation in the survey pertains to individuals with housing loans. A notable 40 per cent of Singaporeans are now anxious about their ability to meet their monthly mortgage instalments.
This figure marks a four-year-high, surpassing the anxiety levels recorded during the tumultuous period of the COVID-19 pandemic from 2020 to 2022. In 2021, the figure sat at 31 per cent, and a recent spike in interest rates has exacerbated the escalation of mortgage affordability concerns.
During the survey’s data collection period, the 3M Singapore Overnight Rate Average (SORA) was recorded at a relatively manageable 1.27 per cent.
However, since Sept 8, 2023, the SORA rate has surged to a daunting 3.69 per cent. This sudden spike in interest rates has added to the financial burden of homeowners, pushing many to the brink of mortgage payment anxiety.