How does one of the world’s most expensive real estate markets simultaneously rank among the most attainable for homeownership? Singapore presents this apparent contradiction through its dual-market structure, where approximately 78% of households reside in Housing & Development Board flats. Overall homeownership rates approach 90%, among the highest globally.
Singapore’s dual-market structure creates a global paradox: sky-high real estate prices alongside 90% homeownership rates.
The 2025 ULI Housing Affordability Index identifies Singapore HDB apartments as one of only three major-city segments offering homes at or below five times median income. This makes it the sole capital city providing attainable ownership options within this threshold. Across the broader Asia Pacific region, only 7 of 51 market segments offer affordable homes at or below five times median income, underscoring Singapore’s exceptional position.
Despite these favorable comparative metrics, young Singaporeans face mounting obstacles when entering the property market. The HDB Resale Price Index rose 9.42% year-on-year in Q1 2025, narrowing the traditional price gap with private housing and elevating entry costs for first-time buyers.
This trajectory reflects a broader pattern whereby house-price growth has outpaced wage growth in recent years, creating a price-income mismatch that disproportionately affects new market entrants regardless of Singapore’s strong median household incomes. Rising costs and modest wage growth continue to hinder middle-income access to both public and private housing segments.
The median multiple for resale HDB flats currently ranges between 3.8 and 4.2, which Demographia’s scale classifies as seriously unaffordable. Despite this classification, Singapore positions favorably against international benchmarks.
The private residential sector presents even steeper challenges, with prices assessed as moderately unaffordable. The URA Property Price Index recorded 3.33% year-on-year growth in Q1 2025.
Market analysts project approximately 3% home-price appreciation through 2025, driven by upgrader demand and robust household balance sheets. At the same time, limited unsold inventory continues to underpin price resilience.
Although pipeline supply of around 55,600 units may temper future price spikes, this volume appears insufficient to reverse accumulated increases.
Singapore’s affordability paradox therefore emerges from the intersection of high incomes and high prices, producing better comparative metrics than most global peers while maintaining significant entry barriers for younger cohorts.
Tighter loan regulations cap mortgage servicing ratios, yet elevated absolute prices still impose substantial financial commitments.
The persistent state commitment to homeownership as a social objective sustains broad policy support for housing schemes. However, whether current supply and affordability mechanisms adequately address generational disparities remains an open question for policymakers and market participants. Government authorities are also considering potential reductions in LTV limits and stricter income requirements that could further impact first-time buyer access.
