Singapore’s public housing system is often lauded as a model for affordable housing, but its promise is becoming harder to fulfill as property prices consistently climb. For someone like me, a European entrepreneur with experience in different markets, this trend in Singapore raises some important questions about the scalability and sustainability of housing models that rely heavily on government intervention. Let’s break down what’s been happening.
About two decades ago, Singapore’s Housing and Development Board (HDB) was celebrated for giving nearly every Singaporean household access to affordable and quality homes. Over 80% of Singaporeans live in HDB flats, with a remarkable 90% owning their residences. Recently, however, the system has started showing cracks, with prices of these public flats regularly hitting S$1 million in the resale market. This is no longer an anomaly; it’s becoming the norm.
Main factors driving the price surge
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Consistent demand with limited supply: Despite government measures aimed at bolstering the housing supply, demand continues to outpace it. New Build-to-Order (BTO) flats often have long waiting times, sending buyers to the resale market, which drives up prices.
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Wealth inequality: Transforming rental housing into homeownership may have enriched early buyers but has also fueled inequality. Those who got in earlier generally benefited more due to long-term price appreciation; first-time buyers today often pay a premium.
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Cooling measures with limited impact: Singapore’s government introduced policies like reducing loan-to-value caps and imposing waiting periods for previous private property owners to buy HDB flats. These did calm speculative investments but haven’t substantially curbed price growth.
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Perception of value: Many buyers consider HDB flats as long-term investments. This has made policies targeting speculation less effective since most buyers purchase to own, not to flip.
Data paints a clear picture
The resale market has seen prices rising for a record 20 straight quarters. HDB resale index trends illustrate this continuous growth. In September 2025, 172 resale flats crossed the S$1 million mark, an 8% share of all resale transactions that month.
As Bloomberg reported recently, this aligns with a global trend: housing affordability is worsening in urban centers even with government intervention. In Singapore, the price-to-income ratio for median earners keeps climbing, which inevitably widens the affordability gap, especially for younger or median-income families. Is this the collapse of the original social promise, or simply a recalibration?
How Singapore's housing policies evolved
The original vision dating back to the 1960s was anchored in providing basic housing as a right, heavily subsidized yet still tied to homeownership. But over the years, that goal shifted. Policymakers began emphasizing housing as a tangible asset that plays a role in individual wealth building. While this approach bolstered Singapore’s social progress during its rapid economic boom, it also introduced risks tied to market-based valuations.
For entrepreneurs or market watchers abroad, the case of Singapore serves as a nuanced example of how balancing affordability and market dynamics can create unintended stratifications. If even one of the world’s most controlled public housing systems faces difficulties maintaining price parity, what can less coordinated systems expect?
How to avoid common pitfalls if you’re eyeing housing startups
If housing or urban planning startups are a sector you’re pursuing, Singapore delivers some clear lessons on market pressures:
- Focus on real affordability. Just meeting broad averages isn’t enough if certain segments (e.g., first-timers or low-income groups) get priced out.
- Prioritize shorter timelines for new housing stock. Long wait times inevitably push buyers into more expensive alternatives.
- Be mindful of policies that shift toward profit-driven solutions. When housing becomes an asset first and a home second, socio-economic divides worsen.
A step-by-step look at public housing startups
For anyone considering building a startup in this sector, here's how you can learn from Singapore’s model:
- Understand demand dynamics: In any market, especially urban ones, population growth and generational shifts drive demand. Tackling this proactively can differentiate startups.
- Data-driven solutions: Incorporate metrics like median income, price-to-income ratios, and family sizes into your market models to ensure accessibility.
- Incorporate feedback loops: Unlike many private markets, public housing revolves around trust. Use community engagements, surveys, and local feedback to refine solutions.
- Create adaptable policies: Housing systems need ongoing fine-tuning to adapt to economic growth, generational changes, and demographic trends.
Insights from my experience
As a serial entrepreneur, I’ve learned that centralized systems can be both a blessing and a weakness. Singapore’s top-down approach streamlined their public housing rollout in the mid-20th century, but today’s challenges might need more participatory methods.
For instance, I’ve worked in ecosystems where smaller-scale, co-living housing startups thrive alongside large public housing bodies. These models often involve private entities filling niche demands left untouched by the bigger systems. Could carving out such a space in Singapore offer relief for younger generations? Perhaps.
There’s also the role of AI. While Singapore already uses data analytics extensively in urban planning, there’s further room for intervention that tailors subsidies to real-time income levels or offers variable mortgage support depending on housing cycles, yet such models need both technical confidence and a willingness to experiment.
Final thoughts
Singapore remains a remarkable case study. Public housing there isn’t in freefall; it’s recalibrating. The challenges it faces aren’t unique but are amplified by the focus on market-based wealth accumulation. Entrepreneurs considering housing ventures need to see it as a market connected deeply to social and cultural expectations. And while economic models can guide policy, it’s the lived realities of buyers that determine success over decades.
FAQ
1. Why are public housing prices in Singapore increasing?
Housing prices are rising due to high demand, limited supply, long waiting times for Build-to-Order flats, and increased reliance on the resale market. Early buyers of HDB flats have benefited significantly from property value appreciation, which contributes to wealth inequality. Learn about Singapore's rising housing prices
2. How many million-dollar HDB flats are being sold?
In September 2025, 172 HDB flats were sold at over S$1 million each, representing 8% of all resale transactions. This trend is increasing annually, with projections for 2025 exceeding 1,300 transactions. Read about HDB million-dollar flat sales
3. What measures has the Singapore government taken to address rising public housing costs?
The government has implemented cooling measures, such as reduced loan-to-value caps and wait periods for private property owners purchasing HDB flats, to curb speculative investments and stabilize prices. Explore Singapore's housing cooling measures
4. What defines affordability in Singapore's housing system?
Affordability is measured by price-to-income ratios, median incomes, and subsidies. However, as prices rise faster than incomes, median earners face greater challenges in accessing affordable housing. Discover how affordability is structured
5. How has Singapore’s housing policy evolved since its inception?
Initially focused on providing affordable rental housing, policies shifted toward promoting homeownership in the 1960s. Over time, the emphasis transitioned to housing as an asset, contributing to property market valuations and wealth stratification. Review Singapore's housing policy evolution
6. What is the price-to-income ratio trend in Singapore’s housing market?
The price-to-income ratio for resale flats has reached historic highs in recent years, reflecting worsening affordability even among middle-income families. Learn about price-to-income ratio trends
7. Are younger generations struggling to afford housing in Singapore?
Yes, younger and median-income families face increasing difficulty due to higher prices and longer wait times for new flats, forcing many into the more expensive resale market. Read about housing barriers for young Singaporeans
8. Is Singapore’s housing model still considered a success internationally?
While still widely regarded as a global model, challenges such as affordability gaps and wealth inequality signal rising difficulties in fulfilling the system's original social mission. Learn about global critiques of Singapore’s housing model
9. What role do perceptions of value play in the housing price surge?
Many view HDB flats as long-term investments, further fueling demand and price increases. This undermines policies designed to target short-term speculation. Explore value perception dynamics
10. Are there lessons for other countries from Singapore’s experience?
Yes, Singapore demonstrates the balance between government intervention and market dynamics but also highlights how housing as an asset can lead to affordability challenges over time. Understand lessons from Singapore’s housing journey
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.