Singapore homes are getting more affordable as rents are climbing, according to Bloomberg.

Citing a private banker at ICICI Bank Ltd, Bloomberg reported that low interest rates are making owning a home more affordable.

"The clincher in Singapore is that monthly installments toward repayment of your loan are lower than what you would pay in rent," Anantharaman told Bloomberg.

The private banker reportedly took out a S$1.04 million (US$815, 215) mortgage for his S$1.3 (US$1.02) million property late last year. "It's one of the few countries in the world where that is possible," he told Bloomberg.

According to data from the Urban Redevelopment Authority (URA), Singapore Private Property Index (PPI) finally eased 0.1 per cent in the the first quarter, after having reached a record high in the previous quarter.

Citing the Jefferies Group Inc, Bloomberg reported that home affordability in Singapore has risen to the highest in a decade because of historically low interest rates and flexible payment options available to buyers.

Bloomberg further reported that mortgage rates in Singapore are the lowest in Asia, followed by Hong Kong, citing analyst Sanjay Jain from Credit Suisse Group AG in Hong Kong.

Via Property Report