Singapore’s household net worth witnesses strong growth in Q4 2023, fuelled by financial and property assets

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27th February 2024 – (Singapore) According to the latest household sector balance sheet released by the Department of Statistics, Singapore’s household net worth experienced a substantial increase of 8.9 per cent year-on-year in the fourth quarter of last year. This growth rate surpassed the previous quarter’s performance, indicating a positive trajectory for the country’s economy.

The balance sheet analysis revealed that the surge in net worth was primarily driven by the robust expansion of assets. In the fourth quarter, assets witnessed a notable growth of 8.0 per cent, surpassing the 6.8 per cent growth recorded in the third quarter. This acceleration can be attributed to the strengthened performance of both financial assets and residential properties.

Within the financial sector, Singaporeans witnessed favourable market conditions, leading to increased valuations and improved returns on their investments. This positive market sentiment bolstered the growth of financial assets, contributing significantly to the overall rise in net worth. Additionally, the residential property market experienced an upswing, with property values appreciating during the period under review. This upturn in the property market further boosted the asset growth for households in Singapore.

On the other hand, household liabilities recorded a modest increase of 1.0 per cent in the fourth quarter. The data indicated that mortgage loans saw a growth of 2.3 per cent, reflecting the continued demand for housing and real estate investment. However, personal loans contracted by 2.6 per cent during the same period, suggesting a cautious approach towards personal borrowing.