There are 3 major types of property available in Singapore, HDB, Condo, and Landed properties. HDB in Singapore is limited to a certain group of buyers due to the income ceiling. For executive condos, the income ceiling applies as well. Private condos and landed properties have no such limitations. So how much do houses cost in Singapore?
For HDB Build To Order (BTO), a first-hand 3-Room house (2 bedrooms) usually costs around $200,000 and above. Resale units are more expensive and they are usually priced at $280,000 and above. A typical 3-room condo usually costs at least $1,400,000. Landed properties are averagely $4,000,000 for a semi-detached and $10,000,000 for a bungalow.
Managing your property expenditure
Buying a house in Singapore can be really taxing. However, all these can be mitigated as long as we manage our finances and expenses properly. Singapore is among the Top 10 most expensive cities in the world, hence most Singaporean purchase a property with a housing loan.
Whether you are a young couple that just entered the workforce or a family with kids, there are expenses that you will need to consider. Such expenses are renovation costs, furniture, utilities, management fees (if any), and minor repairs costs in the house.
how much does it cost to buy an apartment in singapore?
There are 3 types of property available to Singaporeans. This will help to cater to each individual’s budget. There are HDB, Condo, and Landed properties in Singapore. Under HDB, you will have BTO (built to order) and Resales flat units. Likewise, for condo and landed properties, you will have new launches and resale. As properties are expensive in Singapore, you need a clear plan and don’t save blindly for the house.
For HDB BTO, for a 3-Room house (2 bedrooms), it usually costs around $200,000 and upwards depending on the location and its vicinity. As BTO are units that are being built and released by the government, it tends to be cheaper. Whereas for HDB resale units, the prices will be more expensive as it will be the current market price. Hence, for the same unit 3rm HDB 4yrs later, the price might have risen to about $280,000. For condo and landed properties, new launches then to be more expensive as compared to resales. They tend to be the market leader in terms of pricing. However, the only difference is that the prices of the property are controlled by the developer, therefore, there is more room for capital appreciation before TOP. A typical 3-room condo can easily cost $1,400,000 nowadays. Average prices for semi-detached $4,000,000 and bungalow cost an average of $10,000,000.
Other Costs involved
1. Buyer stamp duty – This is a tax that all buyers for Singapore properties will have to pay to the government. It is 4% prorated depending on the quantum of the property. It will be 3% for the first $1,000,000 and thereafter 4% prorated.
2. Additional buyer stamp duty – ABSD was implemented by the government to stop property speculation. Hence, if Singaporeans are intending to purchase their second property, they will have to pay 12% and 15% for the third property. Click here to find out more.
3. Conveyancing fees – For property transactions, we will require lawyers to complete the paperwork. Depending on whether did the buyer utilizes his CPF funds, it can affect the cost of the conveyancing fees. These fees usually start from $2,000 upwards.
4. Valuation fees – As mentioned earlier, most Singaporeans require bank loans to purchase a property. Hence, for banks to release the funds to you, they need to have a valuation of the property’s worth. The fees will be borne by the buyer and it usually ranges from a few hundred dollars.
5. Agent’s commission – Agent’s commission varies for different transactions and sometimes it doesn’t even apply at all. For new launches, buyers do not need to pay any fees. However, if you engage an agent to help you buy HDB properties, the fees are usually 1% of the property price. If you are looking to sell your HDB or private properties, agent fees are usually 2% of the property price.
6. Interest on the loan – The interest on the bank loan matters a lot. Higher interest over the loan tenure would mean several thousand per month and lower interest would help you to pay down significantly on the principal. Hence, shop around and make sure you have the best deal during the time of your purchase and also research on the macroeconomics before you decide.
7. Fire insurance – If you require a bank loan, it is compulsory to have fire insurance for the property. The bank needs some form of assurance for the monies that they loan out to you. Depending on the insured amount, it can range from $80 per year to a few hundred per year.
In the end, a detailed financial calculation will ensure that you will be safe to service your property through an economic crisis, even like Covid-19. As long as you plan your safety nets, monthly installments will not be a burden to you. Ironically, during a crisis, interest rates will drop, if you take SIBOR bank loan packages, you might even save more.
Conclusion – so how much do houses cost
There are properties of various pricing, ranging from $280,000 to $10,000,000 and upwards. It all boils down to which property suits you most.
As long as you do your financial calculation right, there will always be a house that suits your budget and needs. Just remember that no house has all the factors that you want, you might just need to weigh the pros and cons and forgo some of them. Doing this will help you find your perfect private property!