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  • Writer's pictureTimothy Tjendra

How Much You Need to Earn to Afford a Landed Property in Singapore?

Updated: Apr 8



Singapore properties are typically segregated into three main regions, Core Central Region (CCR), Rest of Central Region (RCR) and Outside Central Region (OCR).


The Core Central Region (CCR) includes the traditional prime areas of Singapore (i.e. districts 9, 10 and 11), the Downtown Core (parts of Bugis) as well as Sentosa. The CCR is known for its premium luxury properties and a large percentage of Good Class Bungalows (GCBs) can also be found here, mainly in Districts 10 and 11. Most of the landed properties in CCR are concentrated in Orchard, Somerset, River Valley (District 9), Tanglin, Bukit Timah, Holland (District 10), Newton, Novena, Dunearn, Watten (District 11) and Sentosa (District 4)


The Rest of the Central Region (RCR) is sandwiched between the CCR and the Outside Central Region (OCR). The RCR is regarded as the intermediate, or mid-tier, region in terms of pricing, between the more affordable properties in the OCR and the high value properties in the CCR. Most of the landed properties in RCR are in MacPherson, (District 13), Geylang (District 14), Mountbatten (District 15) and Bishan (District 20).


The Outside Central Region, or OCR, comprises areas outside the CCR and RCR, essentially the rest of Singapore. Spanning around three-quarters of Singapore, the OCR is the largest market segment. Most of the landed properties in OCR are in Kovan, Serangoon (District 19), Ang Mo Kio (District 20), Kembangan (District 14), Telok Kurau, Siglap, Frankel (District 15), Clementi (District 5), Upper Bukit Timah (District 21), Dairy Farms (District 23), Mandai, Upper Thomson (District 26), Sembawang (District 27) and Seletar (District 28)


Do take note that you need to be quite careful about the which part of a particular district falls into RCR and which part falls into OCR as RCR and OCR can share the same district. For example, properties in District 15, Mountbatten which is considered as RCR have an average PSF of around S$2,080, while properties in Telok Kurau which is considered as OCR have an average PSF of S$1,385. That is a significant difference in prices for the same district even though they are nearby each other.


Affordability Comparison between OCR, RCR and CCR


Source: URA Space


From the map above, we can see most of the designated Landed Housing Area (shaded in red) falls in Bukit Timah (District 10), Marine Parade (District 15) and Serangoon (District 19). Based on the latest data in Q1 2023 below, we can also see these three districts account for most of the transaction volumes. Seletar (District 28) is having a high transaction volume recently because of new big sized landed development such as Belgravia Ace and Pollen Collection that's currently on sale.


Source: PropNex Research


In the table below, I did an analysis on the different types of landed property in different regions of Singapore based on the assumption that a terrace is around 2000sqft in size, a semi-detached is around 3000sqft in size and a detached is around 5000sqft in size. Using the March 2023 Avg. PSF prices from the chart above, I used District 19 as a proxy for OCR, District 15 as a proxy for RCR and District 10 as a proxy for CCR to estimate the price of the various property types in different region.


Based on a hypothetical scenario of a Singaporean buyer for his 1st property that is looking to borrow up to 75% LTV at an interest rate of 4% and for 30 years, I calculate the loan payment to be made monthly and the 25% down payment of which 5% needs to be paid in Cash and the remainder 20% can be paid using Cash or CPF. Assuming this buyer has no other loans and looking to borrow up to the maximum of 55% Total Debt Servicing Ratio (TDSR) of his monthly income, I calculate the minimum salary the buyer needs to have in order to afford the different types of landed property. Since he is a Singaporean buying his 1st property, he doesn't have to pay Additional Buyer's Stamp Duty (ABSD) but he still have to pay Buyer's Stamp Duty (BSD).


From the above analysis, to be able to buy the most affordable landed property which is an Inter Terrace landed property in OCR, you need to be having a monthly salary of at least around $24,000 to be able to pay the monthly loan payment and have Cash plus CPF savings of around $1.1 million to be able to pay the 25% down payment and Buyer's Stamp Duty (BSD).


Do note that the above analysis is based on average prices in the different regions. However, depending on whether the property is newly build or is an old original building, the prices can be higher or lower than these average. If you are keen to find what other landed property options you have beside buying a brand new development, check out my article: "How To Choose Between Landed Property Rebuild, A&A, Renovation or New Developer Sale?"


I hope I have given you an overview of how much is needed to afford the various type of landed property in Singapore. Everybody financial situation is different and if you have any doubts about what type of landed property you can afford to buy, do reach out to me for a no obligation consultation.


Disclaimer: PropNex Realty Pte. Ltd. or its salesperson will not be responsible for any errors or omissions or for the results obtained from the use of this information. All information is provided with no guarantee of accuracy. If in doubt, kindly seek advice from your financial advisors or bankers before you make any property investment decisions.

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