1. Why Some Homes Cost More Than Others
Why can one HDB fetch $1.5M while another only goes for $700K? Why is a 3-bedroom condo in one location $3M, while elsewhere it’s $1.5M?
The answer begins with basic economics: supply versus demand.
Higher prices are often seen in mature towns like Toa Payoh or Queenstown — city-fringe locations that have grown increasingly popular, especially among millennials seeking convenience and lifestyle.
Another key driver is school proximity. Properties near elite schools command stronger demand, as many parents plan years ahead to secure a place for their children. In Singapore’s culture of academic competitiveness, this “school effect” significantly boosts property values
2. Rising Income & Affordability
Many are also upgraders and majority comes from BTO. These BTO owners are sitting on $800K–$1M profits especially if their BTO is located at popular areas, or private owners who cashed out elsewhere to move closer to the city. These profits their housing could easily help them to down pay for their next home.
Of course, we have to factor rising incomes too.
Singapore’s average household income per capita has been growing steadily, especially among those earning $14K–$20K per month. This group often already owns a home, so when they sell, they walk away with healthy proceeds. With both cash for downpayment and income capacity, they can easily enter their next property at a higher budget.
Naturally, this drives up prices in certain segments.
3. Land Cost, Inflation & Government Policy
The “boring” part of the story is also important: land costs and inflation.
In Singapore, property — especially HDB — is the bedrock of the housing economy. The goal isn’t to keep homes cheap, but to keep them affordable relative to income. As incomes rise, new housing prices will adjust upwards to stay aligned.
At the same time, the government has no intention of fueling speculation. Cooling measures like ABSD, loan curbs, and tighter financing rules exist to keep the market stable for the long term.
4. Are We in a Bubble?
So, back to the big question: Are we in a bubble?
I’d say — not yet. And if it ever comes close, the government will drop enough hints (they’ve always been a little “kiasu” about stability).
Ultimately, it’s not about timing the market, but about your budget and the intrinsic value of the property you’re eyeing.
Truth be told, I’ve never met a seller who complained after cashing out on their property. But during the purchase? Complaints are common. That’s normal — it’s the discomfort of delayed gratification.
Think of your home as a nest egg. It’s not just a place to live, but a cornerstone of your retirement plan. And who knows — you may not even need to wait till 65 to enjoy the fruits of it.