In 1970s, a 3 room HDB flat costs $8,000. A fresh graduate then earns $1,000 monthly. It is about 8 times his salary. Of course it was extremely rare to have a graduate then!
Currently, a 3 room HDB flat in Ang Mo Kio costs $270,000. Compared to a fresh graduate’s salary of $2,700, it is 100 times his salary!
In simple words, HDB prices have since increased 30 times, compared to 2.7 times our salary since 1970.
And HDB has always maintained that prices are reasonable and affordable. I supposed it is, for the higher income families!
This explains why dual income is the dominant income model for most families. It makes houses 50% more affordable!
When can I afford to buy my own house?