Although Singapore maintains one of the highest homeownership rates globally at over 90 percent, the city-state’s middle-income households face mounting pressure as property prices continue to outpace wage growth. The median property price reached S$1,594,600 in 2025, while the median monthly household income stands at S$9,500.
Housing costs surge past wages as Singapore’s middle class feels the squeeze despite record homeownership rates.
The disparity between earnings and housing costs has intensified scrutiny on affordability metrics, particularly for those in the upper-middle income bracket who earn approximately S$21,488 monthly at the 80th percentile. Yet, they find suburban condominium prices and Certificate of Entitlement costs escalating beyond their reach. The COE alone now costs over S$100,000, a prerequisite expense before even purchasing the vehicle itself.
The national average condominium price has climbed to S$1,989,082, while properties in the Core Central Region command an average of S$2,947,829. These figures place private housing firmly in the moderately unaffordable category according to Demographia’s 2025 assessment. The luxury segment continues to set market benchmarks, influencing adjacent property prices and pushing affordability further from middle-income reach.
This pricing structure creates a significant gap for households exceeding HDB income ceilings of S$14,000 monthly for families and S$7,000 for singles. These earners no longer qualify for subsidized public housing yet struggle to transition into the private market, where wage growth consistently lags behind housing price inflation. Authorities are also intensifying their focus on property decoupling arrangements, particularly those structured to avoid Additional Buyer’s Stamp Duty, with potential retrospective recovery of underpaid duties when abuse is found.
The HDB resale market, once considered a more accessible alternative, has experienced its own affordability compression. Median resale prices reached S$597,297, and the price-to-income ratio rose from 3.7 in 2022 to 4.3 in 2024.
The primary HDB price-to-income ratio stands at 4.2, while resale units command a ratio of 6.3. This reflects the premium attached to existing public housing stock in desirable locations.
Singapore’s ranking as the fifth most expensive city on Mercer’s 2024 Cost of Living Index underscores the broader economic context. The average monthly expenses for a single person total S$1,513.40 excluding rent, while a family of four faces costs of S$5,467.10 before accommodation.
The government has indicated plans to review income ceilings in September 2025, a move that may provide relief to households currently caught between public housing eligibility thresholds and private market realities.
Despite these challenges, Singapore remains the only major global city where public housing is available at five times or less the median income.
