How Much Do You Need to Save and Earn Monthly for Singles Buying A Condo in Singapore? [Updated]
Updated: Dec 16, 2022
If you have read my last blog post on the "Ultimate Checklist Guide For Under 35 Singles Buying Condo in Singapore", I listed out a few key pointers to take note of for under 35 singles buying condo in Singapore, including the importance of understanding what is TDSR - Total Debt Servicing Ratio and doing up your bank loan IPA.
One other thing that I mentioned is also about saving up sufficient money and CPF to be able to afford the downpayment if you want to buy a condo in Singapore as it can come up to a pretty hefty sum.
In this article today, I will be providing you with the cost breakdown using actual numbers based on today’s property market, and also to give you a realistic check on condo prices these days in the market so you know exactly how much you to save up for the condo downpayment and other costs.
For ease of comparison, I will only be comparing the prices of new launch condo in Singapore instead of a resale condo, and using only a 1-bedroom unit as an example as singles that are buying a condo in Singapore would usually opt for the smaller sizes.
What is a New Launch Condo in Singapore?
A new launch condo is a condo that has not completed building yet, but allows buyers to start purchasing already. It will take approximately 4 to 5 years for a new launch condo to complete building, similar to how a BTO works.
Buyers of a new launch condo in Singapore will be able to see the mock-up of the condo at a condo showflat to visualize how the development will look like eventually before buying.
Show flats also provide actual room configurations so that you will have an idea of how big will be the unit that you are buying.
Let us first have an idea of how much a 1-bedroom new launch condo costs in the current market in the different parts of Singapore.
How Much Does a 1 Bedroom New Launch Condo Cost in Singapore for Singles?
How Singapore segments properties are according to 3 regions: Outside Central Region (OCR), Rest of Central Region (RCR), and Core Central Region (CCR). You can read more about them here.
Outside Central Region (OCR)
Outside Central Region (OCR) is basically where you can find the most affordable condo prices as they are further away from town area.
Some Outside Central Region places would be Flora Drive, Changi, Tampines, Pasir Ris, Punggol, Sengkang, Hougang, Woodlands, Yishun, and Sembawang for example.
An example of an OCR new launch condo in Singapore would be The Florence Residences, located in District 19 – Hougang/ Punggol/ Sengkang and it is a 99 years leasehold condo that has 1410 units in total and is developed by Logan Group.
The Florence Residences
The lowest-priced 1 bedroom at The Florence Residences costs about S$841,000 to S$932,000 thereabout currently depending on the level and facing of the unit.
[Update - The Florence Residences is currently fully sold out by the developer]
Rest of Central Region (RCR)
Rest of Central Region (RCR) are properties located on the city fringe, where their price range is in the mid-tier zone between OCR and CCR properties. Some RCR regions would be Balestier, Queenstown, Tiong Bahru, Farrer Park, Macpherson for example.
An example of an RCR new launch condo in Singapore would be Park Colonial, located in District 13 – Macpherson/Potong Pasir and it is a 99 years leasehold condo that has 805 units in total. Park Colonial is expected to complete building in Nov 2021 at the moment.
There are only 3 1-bedroom units left in Park Colonial currently as all other units are sold out, and the lowest priced 1-bedroom unit at Park Colonial is currently at about S$942,000 to S$985,000 after the new launch discounts.
[Update - Park Colonial is currently fully sold out by the developer]
Core Central Region (CCR)
Core Central Region (CCR) are properties located in the prime areas of Singapore where you can find the highest end and most luxurious properties at. They include areas like Orchard, Somerset, River Valley, Bukit Timah, Tanglin, Newton, Novena, Tanjong Pagar, and Bugis for example.
An example of a CCR new launch condo in Singapore would be Midtown Modern, located in District 7 – Beach Road/ Bugis/ Rochor and it is a 99 years leasehold condo that has 558 units in total.
Midtown Modern was launched in March 2021 and saw 61% of units sold over the launch weekend between March 19 to 21. The lowest-priced 1 bedroom unit in Midtown Modern is approximately S$1,426,000 to S$1,672,000 currently.
Another CCR new launch condo in Singapore notable is also Kopar at Newton with its 1-bedroom priced at approximately S$1,288,000 to S$1,499,000 currently.
Kopar at Newton is located in District 9 – Orchard/River Valley area, and it is a 99 years leasehold new launch condo expected to complete building in Dec 2023 or earlier.
Kopar at Newton
How much money do you need to save up for the condo downpayment as a single?
With the above examples, you now have a clearer idea of how much a 1-bedroom new launch condo costs in Singapore.
To make things easier, let us use Park Colonial with a purchase price of S$942,000 as it is a mid-tier range RCR new launch condo, as an example to calculate how much cash or CPF is sufficient for you to buy, how much you should save and how much you should be earning to get that 75% home loan from the bank.
1. Bank Home Loan Structure and Condo Downpayment
Based on a purchase price of S$942,000, this is how much cash and CPF OA downpayment you would require.
5% cash – S$47,100
20% cash/CPF OA - S$188,400
75% bank home loan - S$706,500
2. Buyer Stamp Duties (BSD)
Buyer stamp duties are taxes payable to the government when you buy or acquire a property that is located in Singapore.
The buyer stamp duty payable for a purchase price of S$942,000 would be S$22,860.
BSD Calculation Hack: How we calculate this formula is basically (3% x purchase price) – 5400 for properties with a purchase price of more than S$640,000 but less than 1 million, and (4% x purchase price) – 15400 for properties with a purchase price of more than S$1 million.
Otherwise, you can refer to this table below from IRAS to do a manual calculation and check if the numbers stated above are correct.
Do take note that the BSD numbers that I have illustrated above are for Singaporean Citizens buying their first property in Singapore.
If you are a Singaporean Permanent Resident (PR) or you are going to buy your 2nd property then you will have to incur Additional Buyer Stamp Duties (ABSD) on top of the BSD that you are already paying, which you can read more about this here.
The S$22,860 that I have calculated earlier can be paid by CPF OA if you are buying a new launch condo in Singapore. If you are buying a resale condo, you will have to pay the BSD in cash first and then later use your CPF OA monies to reimburse yourself.
3. Legal Fees
The reason why there are legal fees is that you will need to engage a property law firm to do conveyancing for you. Legal fees are payable to property law firms to help you coordinate between numerous parties in Singapore – Singapore Land Authority, the developer, the bank, CPF board, and yourself.
Legal fees payable to property law firms in Singapore for new launch condo purchases are approximately S$2500 and can be paid via cash or CPF OA.
4. Bank Valuation Fee
Bank Valuation fee is a one-time fee payable to the bank upfront once you have obtained your bank home loan approval, and ranges from S$50 to S$80 plus for buying a new launch condo in Singapore, and have to be paid in cash only.
5. Bank Fire Insurance Premiums
Bank Fire Insurance Premiums are yearly insurance premiums payable to the bank as you will be required to take up fire insurance with whichever bank you take up your bank home loan with.
It costs around S$100 plus to S$200 plus per year and is only payable at a later stage after your new launch condo has reached its Temporary Occupation Permit (TOP) stage and completed building. Bank fire insurance premiums are payable by cash only.
6. Maintenance Fees payable to Management Corporation Strata Title (MCST)
MCST is the committee that manages the maintenance of your new launch condo in the future, after it has completed building which includes duties like maintaining the cleanliness of the condo, repairing damages to common property, giving the condo a fresh coat of paint after a few years of it being worn out etc.
Maintenance fees are payable in cash monthly and for a 1-bedroom new launch condo in Park Colonial, we are looking at about approximately S$225 per month, payable by cash only.
7. Minor Renovation and Furniture Costs
A new launch condo is new and comes partially fitted so you do not really need to allocate too large of a sum to renovations.
New launch condo developers would usually already provide you with a fridge, kitchen hob, washer, dryer, and a fully renovated toilet.