Housing affordability is a topic that remains front and center in Singapore, especially as property prices continue to soar in 2025. But what exactly does “affordable” mean in today’s context, and how is it determined for the average Singaporean?

Affordability isn’t just a vague notion—it’s often measured by comparing housing prices against median household incomes, typically gauged through the Mortgage Servicing Ratio (MSR) for public housing (HDB flats) and the Total Debt Servicing Ratio (TDSR) for private properties.

For HDB flats, affordability usually hinges on the ability of average households to comfortably service mortgages without overstretching their finances. Historically, Singapore has maintained affordability by linking HDB prices to median income levels. But with recent sharp price increases, there’s growing concern about whether this balance is sustainable. Are median-income households feeling more strain than ever before?

When it comes to private properties, affordability tends to focus on the top 30% of earners. Even within this income bracket, rapidly rising costs—driven by factors such as increased Additional Buyer’s Stamp Duty (ABSD), higher construction expenses, and limited supply—pose significant challenges. Has the barrier to entry become too high, even for relatively affluent buyers?

One critical aspect we explore is the growing gap between the prices of HDB flats and private condos. Historically seen as stepping stones toward asset progression, private condos are increasingly drifting out of reach for HDB upgraders due to escalating prices. This widening gap prompts crucial questions: Is the aspiration of upgrading to private property becoming unrealistic for the average Singaporean family?

In this detailed exploration, we break down these concepts clearly and practically. We’ll analyze current income trends, property price movements, policy impacts, and future projections. Our goal is to equip you with the clarity needed to make informed decisions about your housing future.

Watch the full discussion to better understand Singapore’s property landscape in 2025 and discover whether your homeownership dreams align with financial realities.