How much does it cost to buy real estate in Sydney, Seoul, Singapore, Taipei


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Housing prices across Asia and the Pacific are rising — in some cases by as much as 37%.

House buyers are taking advantage of the continuous stimulus caused by the pandemic, while international investors are looking for a place to invest their money.

To get a better picture of where real estate prices are moving, CNBC compared the average sales prices of one-, two-, three- and four-bedroom properties in four major Asia-Pacific cities: Singapore, Seoul, Sydney and Taipei.

It is based on a combination of data from governments and local real estate.

In the case of Seoul, the capital of South Korea, where real estate is measured in a local “pyeong” unit, prices are converted according to their comparative number of bedrooms.

By comparison, the average home price for U.S. active home ads in July 2021 was $ 385,000, up 10.3% from a year earlier, according to data from realtor.com.

All four cities are mutually international business centers, and Singapore has emerged as the most expensive city to own an apartment compared to Seoul, Sydney and Taipei.

Here’s a brief overview of property prices in four cities, according to a CNBC estimate.

Singapore

Singapore – an Asian financial center known for its tall skyscrapers and high cost of living -created as the most expensive place to buy real estate, according to a CNBC survey of four major Asia-Pacific cities.

One- to two-bedroom properties in the wealthy central district of the city-states cost about $ 1.03 million, according to average sales price data collected on the real estate page PropertyGuru from January to July 2021.

Real estate with three to four bedrooms approached close to 2.5 million dollars in the same period.

The slopes in central Singapore are covered with skyscrapers.

PropertyGuru

Prices for one- and two-bedroom houses remained relatively stable in the year to July. However, three-bedroom real estate has seen a “significant increase,” with prices rising over 5% a year — especially in more desirable neighborhoods like Alexandre, Commonwealth, Chinatown and Tanjong Pagar.

The centrality of such locations, combined with more space for remote work arrangements, have made triple beds a “more affordable option,” Tee Khoon Tan, manager of Singapore-based PropertyGuru, told CNBC via email.

Space is no longer a luxury, but a necessity.

Tee Khoon Tan

Country Manager in Singapore, PropertyGuru

“Space is no longer a luxury, but a necessity,” he said. “As such, home buyers may find that typical single or double beds are too small. Combined with higher prices per square meter of single or double … triple (become) are a more affordable option compared to the rest.”

The same cannot be said for four-bedroom real estate, where prices remained stable throughout the year — and in some cases even fell — because sellers sought to attract higher-ranking buyers.

Seoul, South Korea

The Han River flows through the heart of South Korea’s capital, Seoul.

Sungjin Kim | Moment | Getty Images

One- and two-bedroom properties, measuring up to 99 square meters, in Seoul’s affluent central residential district of Gangnam have cost an average of $ 855,000 since July 2021, according to data collected by the South Korean real estate app Zigbang.

Real estate with three to four bedrooms from 99 to 165 square meters brought in about 1.8 million dollars.

Like Singapore, price growth in South Korea has been less dramatic in smaller real estate. From January to June this year, one bedding area under 66 square meters increased by 5%.

“Studio-style” business premises — or buildings that combine residential and commercial real estate and are popular with singles — rose 8%. Meanwhile, larger real estate grew by an average of 31%, with the prices of the largest real estate rising the most.

I believe the market is at a turning point. However, I do not see a reduction in prices this year.

Young-jin Han

head of big data, Zigbang

Young-jin Ham, head of big data at Zigbang, said the continued rise in property prices has a lot to do with low interest rates, prompting people to seek a bigger blow for their dollar, as well as “sufficient liquidity and a lack of investment destination alternatives.”

Last week, The Central Bank of South Korea has raised interest rates, becoming the first developed economy to do so during the pandemic era. That could cool the hot real estate market, but Ham said he doesn’t see prices go down any time soon.

“I believe the market is at a turning point,” Ham said. “However, I do not see a reduction in prices this year. I predict that the growth trend will continue this year as well.”

Sydney, Australia

The eastern suburbs of Sydney around the harbor in an aerial view with soft morning light and blue skies.

zetter | iStock | Getty Images

Real estate prices rose to a modest 3% for one- and two-bedroom housing units in the first half of 2021, while prices for three-bedroom apartments rose by about 8%.

The increase in house prices, however, was far more drastic in the same period, rising between 15% for two-bed and 27% for four-bed houses. Interestingly, four-bedroom housing units recorded the largest price growth as a whole, jumping 37% per year.

Domain’s head of research and economics, Nicola Powell, said such unit sales reflect a small market share in premium locations, with most of the growth still coming from home sales.

“This reflects changed customer priorities as the need for space becomes a higher priority,” Powell said. “It’s also a reflection of rising apartment prices by landlords and tenants, as investors have mostly stood aside in the last year, only becoming more active in recent months.”

Taipei, Taiwan

Taiwan’s capital Taipei has become the most accessible Asia-Pacific city among those measured by CNBC.

One- to two-bedroom properties in the city cost an average of $ 473,500, according to data from June 2021 collected by global real estate agent Savills.

Meanwhile, the three- and four-bedroom properties had an average value of $ 977,000.

Tall buildings stretch across Taiwan’s capital Taipei.

Ratima Sritangwong | EyeEm | Getty Images

Overall, real estate prices rose by about 4.5% year on year. Newer real estate was in the highest demand, with prices more than doubling by 10.4%.

Low interest rates, stimuli caused by the pandemic and trade tensions between the US and China that forced technology companies to move to Taiwan have created the perfect storm for real estate prices in the capital, said Savills research leader Erin Ting. She said she did not expect the trend to slow down any time soon.

“Although the average price in July has not yet been announced, I think the price will continue to rise,” Ting said.

– Chery Kang of CNBC contributed to this report.

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