Is it possible that a 5 rm HDB flat costs less than one year’s combined income of two young graduates? Young graduates refer to those working less than 5 years after graduation. And this could also be extended to mean any two young executives with the same income. Definitely. At one time a 5 rm flat cost only $27,500 in Holland Village. If the couple were earning $1,500 pm each, that’s $3k pm or about $40k pa inclusive of bonuses. I know some of you are shaking your heads. KNN. How could this be possible when we are supposed to better off than before? Those people then could pay off the whole $27k with less than a year’s income and with plenty to spare. And they could set aside some money as savings in their CPF or in their bank accounts. Better still, with that kind of price, today the same flat could have appreciated and may be valued at $600k! Damn nice feeling huh. Using the same magic formula, a $400k flat today could well be valued at $8m in the future, using a multiple of 22 times. But things are not that easy now. In the first place, an average young couple would have a combined income of $6k pm or an annual income of $90k. This would not even be enough to pay for half the price of a 3 rm flat. So it would be a no go to begin with. Buying a 4 rm flat will probably eat into all their CPF savings for the next 20 years, leaving very little as savings. Can things be the same again? Can they really believe that their $400k flat be worth $8m in the future? The catch is that many workers, especially the CBF workers, would not be able to see their salary go up in leaps and bounds to be able to pay for a 4 rm flat. Who can afford an $8m public flat? If a public flat is selling at $8m, then a plate of char kway teow would likely cost $100 and an average young couple should be paid like $30k pm. Maybe, just maybe, when everyone is using banana currency.