Is Property Affordable?

Recently, quite a few blog posts on this topic - Is Property Affordable?

IMHO, having to take a housing loan of 25 or 30 years and stretching the loan payment way beyond into 50s and 60s is already a sign of that person struggling hard to afford that "choice" piece of property. The real problem of affordability lies with the "choices" e.g. a 4-rm HDB BTO in Punggol may cost $277-$300K and may need only 15-20 years housing loan and can be fully paid before 50s.

Are new HDB prices really not affordable now? (2)

Read? Are new HDB prices really not affordable now?

SINGAPORE: The Ministry of Manpower (MOM) said the median monthly income of resident Singaporeans in full-time employment rose by 4.2 per cent over the year to S$2,710 in June, boosted by the strong economic recovery.


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Here is the Maths:

median annual income = $2,710 x 13 (including AWS or 13th month pay or bonus)
                                  = $35,230

Cost of a  new 4-room at Punggol now is selling at about $300K

So it about 8.5 times median annual salary.

Mine was bought at 6.2 times annual income so it is a 37% increase!!! Mine was cheaper but it was built near a cemetry and so ulu hor. Only one bus service to Kovan Bus Exchange.

This increase of 37%  come with better quality and environment but it is smaller.