Are HDBs getting more and more expensive?

The straight answer is yes, and no.

It may be an unpopular opinion, but whether the flat you buy is expensive or not, it’s because of the choice YOU make.

“Tampines BTO now $500,000?! How to afford?”

“Resale flats in Duxton for $1,000,000?! Siao!”

“I pay 30 years also cannot finish!”

If this is you or someone you know, this article hopes to change your mind.

The price of convenience

If you are willing to pay $5 more to have Starbucks delivered to your doorstep, then you should understand that convenience has a price. A flat in Woodlands, or even Tengah, could be half the price of a flat in Kallang simply because of its location. Don’t expect to live in a mature estate while paying the same price as other Singaporeans in non-mature estates.

Flats in non-mature estates are further away from the city, and there could be fewer amenities and prominent schools. Yes, they are less convenient, but this goes to my next point.

How ‘ulu’ is Singapore really?

With so many urban transformation plans around Singapore, you can really get to the CBD within an hour or so by public transport. Even less if you take a taxi. In cities like Kuala Lumpur, Manila, Melbourne and New York, it could take you more than two hours just to drive to work. This really puts our privilege in check, doesn’t it?

The average price of HDB in Singapore

The magic number of $430,000 is the average of three, four and five-room HDB flats in the whole of Singapore (including executive HDB flats). It’s not about the number of rooms. It is about affordability.

An average Singaporean earns about $4,500, excluding CPF contribution. The average household income is $9,425.

If a couple takes a loan over 35 years, that’s a reasonable payment of $1,105 per month. And this is BEFORE grants.

So in fact, to the average Singaporean buying an average HDB flat, it is actually very affordable. It just depends where we look at.

Singapore’s housing market is one of the world’s most sought-after. Compared to their resale and private counterparts, BTO flat prices are extremely attractive and make it possible to own an asset in one of the world’s most expensive cities at a relatively affordable price.

Your life is only as good as your mindset.