Minister for National Development Desmond Lee’s recent rebuttal of Non-Constituency Member of Parliament (NCMP) Leong Mun Wai’s claim that graduates today are financially worse off when purchasing housing has drawn mixed reactions from netizens, with many expressing scepticism over Lee’s arguments.
During the Community Supply debate on the Manpower Ministry’s budget on 6 March, Leong argued that housing affordability has worsened for graduates today, as he compared the median starting salaries of university graduates in 1979 and 2024 with HDB flat prices from those periods.
In 1979, Leong said, a university graduate’s median starting salary was S$957 per month, while a four-room flat in a new town cost S$27,100–about 28 times the median salary.
By contrast, in 2024, the median graduate’s starting salary had risen to S$4,500, but the cheapest four-room BTO flat was priced at S$290,000, amounting to 64 times the median salary.
That said, Leong concluded that despite higher education levels, graduates today face greater challenges when it comes to housing affordability.
In response, Lee argued that Leong’s argument was based on a “selective” use of data, saying that the NCMP failed to consider key differences between 1979 and today’s housing landscape.
The minister countered that in 1979, only 4% of each cohort attended university, compared to more than 40% today, and that comparing affordability for a small elite group in the past to the majority today distorts the picture.
Lee also argued that flats in 1979 were basic, with few amenities and limited transport connectivity, whereas today’s HDB flats come with modern features and better access to infrastructure.
The minister further noted that the resale market was almost non-existent in 1979, whereas today, HDB flats serve as both homes and financial assets that Singaporeans can monetise later in life.
Lee also argued that more than 90% of Singaporeans owned a home today, compared to 62% in 1979.
He also highlighted that most first-time homebuyers in 2023 used little to no cash to service their mortgage instalments.
However, many commenters on CNA’s Facebook post covering the debate expressed their scepticism towards the minister’s rebuttal of Leong’s claim, contending that housing affordability has indeed worsened relative to salaries.
Several netizens pointed out that housing prices have risen disproportionately to income growth, making it harder for young Singaporeans to buy homes.
One commenter shared that his father bought a three-room HDB flat in 1980 and managed to pay it off in less than 10 years despite “earning a miserable salary,” suggesting that housing was more affordable for that generation.
One commenter reflected on her and her partner’s experience, stating that despite holding a non-local degree and earning a salary close to the mean for new graduates in the early 2000s, they were still able to afford a three-room HDB flat.
But their children today are struggling to afford the same type of flat despite having savings and grants, highlighting the increasing difficulty of homeownership for today’s generations.
Another user said that her son thinks that “Desmond Lee is living in his ivory tower” after reading an article about the debate, suggesting that the minister was out of touch with the financial struggles faced by young Singaporeans today.
One commenter said that while housing quality has improved since the 1970s and 1980s, the cost of obtaining a degree and the requirements for university admission have also risen.
The user said that it is reasonable to draw a correlation between these factors when assessing housing affordability.
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