In case you are wondering, nope, I am not the buyer. I still stay in ulu Punggol.
15 years ago when I graduated, if I declared openly that my ambition is to
“Own the most expensive 3-room resale flat in Singapore”
I would probably be laughed off for lacking ambition. Fast forward to now, I am not so sure.
I do not have data but I reckon the most expensive 3-room resale flat in 2010 would be around $450k. With my starting pay of about $3.5k, that is just 10x my annual income.
In comparison, I have an ex-student who is on track to graduate as a first-class honours from NUS. She has better academic credentials than me and has just landed a job with local bank with a starting pay of $5.5k. That $900k resale flat in Biddadari would be 13x her annual income. Huh huh.
If we assume the median graduate pay to be $4.5k now vs $3k in 2010, that is a 50% increase. Compare that with a 100% price increase in “the most expensive 3-room resale flat”, you can understand grievances about the increasing unaffordability of housing for young adults.
I believe the picture for diploma holders is likely to be even grimer. How long would they need to save to afford the downpayment of a $900k flat?
To be fair, this is a world-wide phenomenon. The number of young adults aged 30 living with their parents is increasing every year. Besides increasing grants for first-time buyers, I also do not have a solution in mind.
Another point to consider is whether it is “fair” for a 3-room flat valued at $900k to be receiving more government assistance than a 4-room flat that is valued at $450k. In 2025, an elderly couple living in a 3-room flat could receive up to $5-6k worth of benefits including almost $1k worth of utility rebates.
I doubt there is a “cleaner” solution than categorising based on the size of HDB flats so there could be higher demand for 3-room flats if people start “gaming” this imbalance.
Thanks for reading!
