While the traditional Singaporean dream of acquiring a sleek condominium and a personal vehicle remains a powerful symbol of success, the financial runway required to take off is becoming increasingly steep for many families. Even with rising obstacles, the ambition remains strong, as recent data indicates that 39% aspire to own private condominiums.
The financial runway required to achieve the traditional Singaporean dream is becoming increasingly steep for many families.
The 80th percentile household income rose to S$21,488 in 2024, a 31% increase since 2015, placing these families 90% above the median of S$11,297. This upward trajectory reflects a steady Compound annual growth rate of approximately 3.1%. However, the financial goalposts have moved, as the cost of suburban condos and car premiums has risen faster than paychecks, turning comfortable salaries into tight budgets.
The intense demand for upgrading is evident, with the share of resident households living in condominiums jumping from 13.9% to 17.7% over the last decade. Yet the price tag for this lifestyle is staggering. In prime districts, prices now hover between S$1,800 and S$3,000 per square foot, meaning a modest unit easily costs S$2 million.
With interest rates near 2% keeping monthly mortgage instalments uncomfortably high, many hopeful buyers are priced out of central areas. They are forced to hunt for value in the outskirts where prices are “mass-market” but still pinch the wallet.
Compounding the frustration is a rigid policy design that leaves high earners caught in the middle with nowhere to turn for help. The government’s cooling measures have further dampened accessibility while working to prevent speculative buying and market volatility. Households earning over S$16,000 are disqualified from new Executive Condominiums, while those making above S$14,000 miss out on BTO flats and significant resale grants.
Being “too rich” for subsidies but facing the full brunt of private market inflation creates a tricky dilemma. Such families must decide between financing a smaller private home at high risk or purchasing a resale HDB flat without the cushion of grants.
With private home prices projected to rise another 3% to 5% annually, the upper-middle class faces an uphill battle, proving that a high income sadly doesn’t guarantee an easy win in the challenging property game.
