By: 
In Singapore, private housing such as condominiums are frequently priced twice or even thrice as much as Singapore HDB flats, leading many to believe that only the wealthy can afford the former.
Well, fact is, the average price of condo in Singapore is indeed more expensive than public housing – but they may also be more accessible than you expect, depending on factors like location, your income, and of course how long you intend to stay in the condo of your choice.
In this article, we evaluate how much does a condo cost in Singapore, roughly how much your monthly salary should be to live in a condo comfortably, and whether there’s value in buying a condo.
So, how much does it cost to own a condo in Singapore?
The average price of a condo for sale Singapore can vary significantly based on the unit’s size, the development’s location, and more. Generally, three-bedroom homes in the Outside Central Region (OCR) range from $900 to $1.5 million.
In more centrally located areas, 3-bedroom condos can range from $1.5 million to $3 million. While it’s possible to find tiny 3-bedroom apartments for around $2.5 million, most of them cost significantly more.
| Type | Executive Condominiums | Private Condominiums |
|---|---|---|
| Studio/One-Room | $420,000 to $560,000 | $600,000 to $700,000 |
| Two-Rooms | $640,000 to $720,000 | $800,000 to $900,000 |
| Three-Room | $776,000 to $960,000 | $970,000 to $1.2m |
| Four-Room | $1.12m to $1.4m | $1.4m to $1.8m |
| Five-Room | $1.6m to $1.76m | $2m to $2.2m |
| Penthouse | A minimum of $1.9m | A minimum price of $3m |
However, condo listings also have biased averages, just like HDB listings.
As a matter of fact, condos tend to skew significantly more favourably than HDBs. The median is lower than the average, with certain luxury condos being priced so high that they cause an average deviation from the median of 11-27%.
In Singapore, a condo can refer to either an executive condominium (EC) or private condominium. Both of these residential property types have notable differences despite being somewhat similar.
In terms of price difference, as a general guideline:
Other important things to note:
| Housing Type | Average price | Median Price | Average Price/Sq. Foot | Average Price (sqft) |
|---|---|---|---|---|
| HDB Average | $532,768 | $495,000 | $507 | $1,067 |
| Condo Cost Overall | $1,780,051 | $1,467,778 | $1,731 | $1,053 |
Singapore HDB housing is cheaper as they are subsidised by the government. This is an important consideration if you’re looking for a place to stay.
On average, a HDB property listing is about $532,768. Smaller flats (2 to 3- room flats) cost between $300,000 and $450,000.
Medium-sized flats (4 to 5-room flats) cost about 34% more; while a 5-room or executive flat will set you back 20 to 44% more.
However, don’t be surprised to find certain HDB rentals that cost more than condos in less developed estates. This is due to:
Here’s a summary of condo vs HDB prices according to the number of rooms:
| Type | Executive Condominiums (EC) | Private Condominiums | HDB BTO Flats (Non Mature Estates) | HDB BTO Flats (Non Mature Estates) |
|---|---|---|---|---|
| Studio/One-Room | $420,000 to $560,000 | $600,000 to $700,000 | - | - |
| Two-Room (Flexi) | $640,000 to $720,000 | $800,000 to $900,000 | $90,000 to $162,000 | $137,000 to $277,000 |
| Three-Room | $776,000 to $960,000 | $970,000 to $1.2m | $164,000 to $248,000 | $205,000 to $421,000 |
| Four-Room | $1.12m to $1.4m | $1.4m to $1.8m | $253,000 to $381,000 | $311,000 to $617,000 |
| Five-Room | $1.6m to $1.76m | $2m to $2.2m | $405,000 to $516,000 | $423,000 to $725,000 |
| 3-Generation | - | - | From $355,000 (February 2020) | |
| Penthouse | Usually a minimum of $1.9mn | Usually a minimum price of $3mn |
There are two main factors to consider:
Now, let’s work our way back:
Make a decision on how much you want to borrow first, then divide the condo’s cost accordingly. For example, if you are qualified and want to take the maximum 75% loan, calculate the amounts for your 75% loan quantum and 25% down payment.
| Condo Price | Breakdown |
|---|---|
| $2,000,000 | $500,000 down payment, $1,500,000 loan |
| $1,500,000 | $375,000 down payment, $1,125,000 loan |
| $1,000,000 | $250,000 down payment, $750,000 loan |
Calculate the monthly payment amount necessary to pay off the loan in full based on interest rate, the loan amount, and the maximum eligible loan term.
Consider a tenure of 25 years and an interest rate of 1.6% per year.
| Condo Price | Monthly Mortgage Repayments (1.6% p.a., 25 Years) |
|---|---|
| $2,000,000 (i.e. $1.5 mil loan) | $6,070 per month |
| $1,500,000 (i.e. $1.125 mil loan) | $4,552 per month |
| $1,000,000 (i.e. $750k loan) | $3,035 per month |
Choose the percentage of your monthly earnings that you want to set aside for mortgage payments. This will determine your preferred TDSR limit, after which you can determine the total amount of income you must generate to make ends meet.
You can use up to 60% of your income to pay your mortgage, assuming you have no other debts, if you’re trying to figure out the minimum income you need to make. You can adjust downwards if you want a safety net and don’t want to use up all of your TDSR allotment on the mortgage.
| Condo Price | Minimum Income Needed (Based On 60% TDSR) |
|---|---|
| $2,000,000 (i.e. $1.5 mil loan, $6,070 per month at 1.6% p.a. for 25 years) | $10,117 per month |
| $1,500,000 (i.e. $1.125 mil loan, $4,552 per month at 1.6% p.a. for 25 years) | $7,586 per month |
| $1,000,000 (i.e. $750k loan, $3,035 per month at 1.6% p.a. for 25 years) | $5,058 per month |
| 2-Bedroom Private Condominium | |
|---|---|
| Selling price | $900,000 |
| Loan amount | $675,000 (private bank loan at 75% LTV) |
| Cash and CPF downpayment | $225,000 |
| Legal fees | $1,500 |
| Home insurance premiums | $16.67 per month |
| Maintenance | $250 per month |
| Property tax | $2,240 per annum |
| Mortgage | $2,791 per month |
| Monthly repayment over 25 years | $3,244.33 |
| Total initial cost required | $226,500 |
From the figures above, many Singaporeans can actually afford a starter condo in the RCR or OCR – especially if you assume that the minimal income represents the combined income of a working couple who are jointly financing to purchase a property.
The hefty downpayment is the problem for many people, not the monthly salary and mortgage payments.
So, if you’re thinking of purchasing a condo, ask yourself first: can you afford the initial cost?
This is where longevity comes in; if you can withstand the rigors of the property market, a condo can be a smart long-term investment.
The previous few decades have seen a rising trend in the local real estate market – this includes a variety of private properties, including landed property. While the numbers should be regarded with caution, the overall upward trend ensures that condo owners will live to experience some value growth.
Freehold condos have an advantage over leasehold condos. Because they do not expire, they are good long-term investments. Freehold condos do not require as much planning as leasehold condos or HDB flats.
The Land Transport Authority hopes that by 2030, 8 out of 10 households will be within 10 minutes of an MRT station. The Urban Redevelopment Authority (URA) also intends to deconcentrate the CBD by establishing business hubs in heartland areas.
These infrastructure improvements will undoubtedly help to keep private property prices in the area buoyant for decades to come. There will also be no shortage of condos appreciating in value across the nation as a result of newer MRT lines forming.
At the end of the day, Condos and HDBs have value to Singaporeans. Both two types of properties have advantages and disadvantages – it all depends on your lifestyle preferences and long term goals.
If you’re looking for a personal loan, Money Kinetics offers you full value fast cash loans. Apply now to get quick disbursement upon approval. No upfront fees are required whatsoever.
