Want To Buy A Condo In Singapore? Here’s How Much You Need To Earn Per Month

Want To Buy A Condo In Singapore? Here’s How Much You Need To Earn Per Month

Hmm, it doesn't seem too bad!

Most of us go through the rite-of-passage of balloting for an HDB in Singapore but others aim a little higher to get their first condo in Singapore.

As it is, buying a property is a huge commitment that typically takes up a chunk of our monthly income to pay our monthly mortgage.

So if you’re aiming for the stars and hoping to land a condo as your first property, here’s how much you need to be earning monthly.

First, if you take a look at the maximum income ceiling to purchase a HDB flat, it should already give you a good idea of how much the government thinks you should be earning to be able to afford a condo.

buy a condo in singapore

Source: Housing Development Board

This is a good indicator on whether or not you should be buying a condo. Of course, nowadays, the built-to-order flats are lean more towards 4 and 5-room flats, making the income ceiling a little higher.

So if you’re earning around the income ceiling, it still may not be the best idea to buy a condo as it might still be a little tight on finances.

Let’s take a look then, at the range that you should be earning in order to buy a condo in Singapore

buy a condo in singapore

Source: Shutterstock

For the purpose of the article, we will be looking at a few variables and coming up with some assumptions:

1. We will assume that the buyer is a lone Singaporean citizen buying their first property.

2. We will assume the buyer has to pay the required 20% downpayment for a private property and only takes up the home loan for 30%. This is because regulations have capped the maximum loan tenure for private properties at 35 years. Should the loan tenure last longer than 30 years, the maximum loan amount will be reduced to 60% of the property price.

3. The total debt servicing ratio is up to 60% of gross total monthly income.

4. We will also assume the buyer has no other loans to service.

5. A buyer can consider buying a condo in the core central region (CCR), rest of central region (RCR) and outside central region (OCR). We are assuming the buyer is looking at a unit of about 900 sq ft.

6. We also assume that the loan interest rate is at 1.20%.

Buy a condo in Singapore

buy a condo in singapore

Source: Shutterstock

Based on the assumptions above, we compare the three different areas in which you can buy a condo in Singapore.

Area Property price Loan amount Estimated monthly repayment Monthly gross income needed to meet 60% TDSR
CCR S$2.65 mil S$2.05 mil S$7,366 S$15,342
RCR S$1.62 mil S$1.3 mil S$4,661 S$9,729
OCR S$1.25 mil S$1 mil S$3,596 S$7,483

Source: Edgeprop

You will need to earn about S$7,500 per month if you are to afford a 900 sq ft condo. Of course, you could find cheaper options if you choose to buy a smaller condo — a 614 sq feet condo in Sol Acres, Choa Chu Kang that can go for as low as S$490,000.

If you’re taking a joint loan with your partner, this will be more attainable since it is based on a monthly gross income needed for the entire household, not just an individual.

Based on these numbers, do you think you are ready to buy a condo in Singapore?


If you could afford to buy a condo in Singapore, which would you buy and why? Let us know in the comments. 

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Written by

Sarah Voon