This is a great example but for the wrong thing. What is glaring is that "he is moving into.." and not that he had already paid up for his loan with $850 salary.
Many in this category got the flat and suffered for 5 years. Took loans for renovation and some even resort to ah-long for daily survival. When the flat can be sold in the open market, those with ah-long loan will be forced to sell, getting no cash except extra $40k (with interest) in CPF. Those without loan problem will sell it, take a few 10ks and stay with relatives. They go for holidays, spent like no tomorrow and some even buy cars. When the cash is used up, quarrel starts and they get kick out of their relative's house. Go camping at changi and complained that hdb refused to rent them a house. Sadly the paper is using this as an example that $850 salary can own a flat. This example would suit better to illustrate the start of a nightmare due to greed and poor financial management. They should pick someone who has already paid up for a flat with $850 salary. Yes there are, but few.