One of the most coveted types of real estate property in Singapore is the landed property. Peppered throughout Singapore among the towering HDB's and Condos, landed properties can both inspire and act as a stark reminder of Singapore's wealth gap. So how much do you actually have to earn to be able to afford a landed property? Below, we take a look at the costs are associated with owning a landed property and how much you need to earn to afford one." data-reactid="31" type="text">One of the most coveted types of real estate property in Singapore is the landed property. Peppered throughout Singapore among the towering HDB's and Condos, landed properties can both inspire and act as a stark reminder of Singapore's wealth gap. So how much do you actually have to earn to be able to afford a landed property? Below, we take a look at the costs are associated with owning a landed property and how much you need to earn to afford one.
How Much Do Landed Properties Cost?
Depending on the type of landed property you want to get, you can expect to pay between a few hundred thousand dollars up to S$100 million. When breaking down the landed properties into their categories, we found that a fully detached bungalow sold for an average of S$13,100,000, semi-detached properties sold for an average of S$4,123,200 and terrace houses sold for an average of S$2,858,000 in the first 6 months of 2018. The most expensive properties are Good Class Bungalows (GCBs) which typically cover over 1,400 square metres and are quite rare, with only around 2,700 of them built. These are located mainly in District 10 and 11 and cost more than S$1,600 per square foot.
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average price of a 4-room HDB resale flat." data-reactid="54" type="text">Furthermore, landed properties come with different types of leaseholds which can also change how much a home costs. Freehold properties are the most expensive, followed by 999-year leaseholds and 99-year leaseholds. Intuitively, the less years left on a leasehold, the cheaper it is. Thus, while you may not be able to afford a GCB, you may be able to afford a smaller 99-year lease semi-detached home with around 10-30 years left. In fact, there are a couple on the market that cost between S$300,000 and S$400,000—less than the average price of a 4-room HDB resale flat.
Only the Top 5% of Earners Can Afford a Landed Property
6-figure-per-month earners include specialist medical practitioners, CFOs, financial directors and lawyers. Nonetheless, financing a terrace home is still be a costly endeavour. If we assume that you are making a downpayment of 25%, you will need S$714,590 for the downpayment and will pay about S$9,086 for your monthly mortgage payment given an interest rate of approximately 2%." data-reactid="56" type="text">On average, you would need to have a monthly income of around S$34,646 per household to afford the average terrace house sold in the first half of 2018—putting you in the top 5% of earners in Singapore. These 6-figure-per-month earners include specialist medical practitioners, CFOs, financial directors and lawyers. Nonetheless, financing a terrace home is still be a costly endeavour. If we assume that you are making a downpayment of 25%, you will need S$714,590 for the downpayment and will pay about S$9,086 for your monthly mortgage payment given an interest rate of approximately 2%.
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