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Here is how a lot that you must earn to afford a condominium (2023)


Seeking to purchase non-public property however unsure how a lot you possibly can afford? By no means worry, for 99.co is right here — that can assist you make knowledgeable property selections and past!

In relation to shopping for property, it pays to be conscious when understanding how a lot you possibly can borrow, so that you don’t find yourself with a really costly mistake.

Eligibility versus affordability

Eligibility is to not be confused with affordability. Within the property-buying context, you will need to notice that one’s eligibility to take up a house mortgage isn’t the identical as one’s capability to afford a property.

How do you afford a condominium in Singapore? Some monetary consultants say that your month-to-month mortgage compensation, together with principal and curiosity, mustn’t exceed 30% of your gross month-to-month earnings.

This is similar because the Mortgage Servicing Ratio (MSR) for HDB flats and new ECs. Others say that such necessities are too stringent.

person calculating home loan instalments
Choose a house based mostly on what you possibly can afford for each upfront and ongoing funds.

Whereas opinions on what constitutes a golden mortgage-to-income ratio might differ, what’s vital to notice is that monetary sustainability ought to at all times be a key focus when making big-ticket purchases like property. That is so that you don’t find yourself starved of money to your different objectives (or having to eat on the spot noodle and bread every single day).

How a lot do that you must earn to purchase a condominium?

To make life simpler for property seekers in Singapore, we’ve crunched the numbers to offer the approximate earnings that that you must be incomes to afford a condominium. It will depend upon the kind of condominium you’re shopping for (new condos are typically costlier) and its location (houses within the Core Central Area (CCR) are extra pricey).

These estimates are made based mostly on the power to service mortgage repayments with the next assumptions in thoughts:

For this text, we’re taking a look at 2-bedroom condominium models. Common costs are derived from 99.co’s Researcher, based mostly on gross sales transactions that occurred in This fall of 2022. We additionally used 99.co’s mortgage calculator to calculate estimated month-to-month mortgage repayments

 The estimated month-to-month earnings that you must purchase a brand new condominium

Market section Common worth Mortgage quantity (75%) Downpayment (25%) Estimated month-to-month instalment (with 4% rate of interest) Estimated month-to-month family  earnings 
CCR S$2.22m S$1.67m S$555,000 S$7,948 S$14,451
RCR S$1.75m S$1.31m S$438,000 S$6,266 S$11,393
OCR S$1.38m S$1.04m S$345,000 S$4,941 S$8,984

*Do notice that these estimates are based mostly on the typical worth, which can be larger or decrease than the precise worth. We suggest you to calculate with 99.co’s mortgage calculator based mostly on the precise worth to find out if it’s inside your means.

99.co mortgage calculator to calculate mortgage for OCR condo
With 99.co’s mortgage calculator, merely enter the property worth and regulate the tenure, rate of interest and LTV ratio.
99.co mortgage calculator to calculate mortgage for OCR condo
The mortgage calculator offers you a breakdown of the mortgage quantity, downpayment, month-to-month instalment and curiosity.

For those who meet the minimal earnings necessities, listed below are some new launch condos with 2-bedder models that hover fairly comfortably inside the common worth ranges within the respective market segments:

Core Central Area (CCR)

Remainder of Central Area (RCR)

Exterior Central Area (OCR):

The estimated month-to-month earnings that you must purchase a resale condominium

Regardless of two rounds of cooling measures in December 2021 and September 2022, costs of condos have elevated by 8.1% in 2022. When damaged down by market segments, RCR condos noticed the best worth enhance at 9.7%, adopted by OCR condos at 9.3% and CCR condos at 4.8%

For those who’re on the lookout for reasonably priced condos, you could wish to take into account resale condos.

Market section Common worth Mortgage quantity (75%) Downpayment (25%) Estimated month-to-month instalment (with 4% rate of interest) Estimated month-to-month family  earnings 
CCR S$2.24m S$1.68m S$560,000 S$8,020 S$14,582
RCR S$1.5m S$1.13m S$375,000 S$5,370 S$9,764
OCR S$1.12m  S$840,000 S$280,000 S$4,010 S$7,291

*Do notice that these estimates are based mostly on the typical worth, which can be larger or decrease than the precise worth. We suggest you to calculate with 99.co’s mortgage calculator based mostly on the precise worth to find out if it’s inside your means.

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For those who’re seeking to purchase resale non-public property, listed below are some tasks with 2-bedder models that nestle comfy inside the common worth ranges within the respective market segments:

d'leedon
Artist’s impression of D’leedon.

CCR: 

RCR: 

OCR: 

Now that you simply’re caught up with how a lot each new and resale condos value in Singapore, you is perhaps asking the million-dollar query (actually): Can I actually afford to purchase a condominium?

We’ll have a look at the earnings numbers printed by the Ministry of Manpower’s Analysis and Statistics Division.

Based on them, the median gross month-to-month earnings from work (this contains employer CPF contributions) of full-time employed residents in 2022 is S$5,070 an 8.33% enhance from the earlier yr.

For the uninitiated, the median takes the earnings within the center, so half of the employees earn lower than the numbers under, and half earn extra.

For those who’re a dual-income couple wanting to buy a condominium, you’ll have twice the incomes energy to finance it. Together with your mixed earnings, condos within the OCR and RCR will fall inside your month-to-month affordability vary.

After being within the workforce and saving up for a number of years, you and your accomplice will in all probability have the ability to afford the hefty downpayment and signal that cheque to purchase your dream condominium.

Learn this: 8 steps to purchasing a brand new launch condominium in Singapore

Discover out extra about your affordability vary with 99.co’s affordability calculator!

[Additional reporting by Virginia Tanggono and Jamie Wong]


Planning to promote your property to purchase a brand new or resale condominium? Allow us to assist you to get began. 

For those who discovered this text useful, 99.co recommends New launch condos launching in Q1 of 2023 to improve or rightsize to and A fast evaluate of condominium gross sales with no less than 100% achieve in December 2022.

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