Families moving to Singapore push housing and utility costs higher

The most affordable housing in Singapore costs an average of $532,768.

The influx of families from other countries to Singapore is driving housing and utility costs higher, making the island nation the most expensive place to live in Southeast Asia.

In the cost of living index by the loan matchmaking platform ROSHI, Singapore scored 85.9, surpassing its SEA neighbours.

The most economical choice is an HDB flat or public housing for those seeking property ownership in Singapore, averaging $532,768.

In the higher-end market, houses average $2,080,533, while condos average $1,100,000. Meanwhile, renting a home in Singapore costs around $2,600.

The relocation of families from the Mainland to Singapore has boosted demand for higher education services, likely leading to increased costs.

“In the past 20 years, the cost of receiving a higher education in Singapore has increased by nearly 74.7%, leading to an inflation rate of approximately 2.83% each year. Today, the average cost of a four-year college program in Singapore is estimated at $38,250,” ROSHI reported.

Whilst the influx of overseas families contributes to Singapore's rising cost of living, ROSHI also attributes the increase to limited resources.

“Singapore’s island location makes it more challenging to keep up with the demand for resources, especially food and household items. This issue has been exacerbated by global supply chain problems that have continued to plague the international marketplace since the pandemic,” ROSHI said.

“For example, more than 90% of Singapore’s food supply, including clean, drinkable water, is imported from external sources. Government officials are seeking to control these rising costs by maintaining strong relationships with neighbouring nations like Malaysia. However, the impact of global shortages on Singapore’s cost of living cannot be understated,” ROSHI added.

While living costs have increased, the quality of life in Singapore has also risen in tandem, driven by an over 40% increase in the annual income of Singaporeans in the past decade.

ROSHI stated that Singapore’s exceptional healthcare has also improved the quality of life on the island nation.

The platform noted that maintaining an efficient healthcare system would also lead to higher costs.

"Singapore residents can expect higher insurance premiums in the coming years," said ROSHI, adding that premiums have risen by 35.4% since 2021, according to a MediShield Life report.