Here's why analysts believe Singaporeans have a 'property culture'

5 issues drive this belief.

According to CIMB, statistics show that the number of members participating in CPFIS-OA has grown marginally from 2008 to 2012 while participation in the CPFIS-SA has declined at a CAGR of 4.6%. 

The total amount of funds invested in both the CPFIS-OA and CPFIS-SA fell by 5% CAGR during the same period.

Here's more from CIMB:

Clearly, an equity culture is not blossoming!

Instead, an increasing amount of money is being withdrawn from the CPF account to fund property purchases under the CPF housing schemes.

The data merely confirm what everyone in Singapore knows – Singaporeans have a property culture, not an equity culture.

We think this is driven by a combination of issues, including: 1) an environment of negative real interest rates, 2) a closer affinity with property than stocks for a larger part of the population base, 3) an ability to use the bulk of savings under CPF to buy property vs. a limited 35% to invest in equities, and 4) an ability to leverage up five times for property (assuming loan-to-values of 20%) vs. no leverage for equity investments.