Here's How Much Salary You Need to Buy a Condo in Singapore (2024)

Ever wondered how much salary is needed to buy a condo in Singapore? Well, we’ve thought about that too! A common adage is that owning a condo is one of the five Cs that make up the ‘Singaporean dream’.

Whether you intend to upgrade from an HDB flat to a condo unit or buy a condo outright, you’ll need to budget well before you purchase your property. In this article, we answer the question: "How much do you need to earn to buy a condo in Singapore?"

Indeed, you’ll still need an above-average salary to buy a condo in Singapore. But for those wondering "Can I afford a condo?" you’ll be surprised how much salary you need to buy a condo in Singapore may be closer to your current salary than you think.

Condo prices in Singapore vary widely, depending on factors like the size of the unit and the location of the development. This guide will use 3-bedroom condo units as the case study: they’re good-sized houses for owner-occupiers, including young couples, families, and HDB upgraders.

In the OCR, you’ll likely be able to find the most affordable 3-bedroom condo units for about $900,000 to $1.5 million. Among them, older and leasehold condo units tend to be the most affordable.

In the RCR, a 3-bedroom condo unit can go from about $1.5 million to $3 million. Among them, condo units around Aljunied, Paya Lebar, and Geylang districts tend to be the most affordable. On the other end of the price-affordability spectrum, city fringe condo units closer and more accessible to the Central Business District (CBD) can easily go from upwards of $2 million.

Unsurprisingly, the CCR is where most of Singapore’s luxury condos are developed. While you may be able to find smaller 3-bedroom condo units going for slightly below $3 million, most of them will likely cost way more – when it comes to premium living, the sky’s the limit!

Now, let’s analyse their prices and calculate how much you need to earn to buy a condo in Singapore. These are the steps you need to work backwards to your desired income.

First, decide how much you want to loan and ‘split’ the condo’s price accordingly. In Singapore, you can only finance a condo using a bank loan. Applying for a bank loan to finance a condo is relatively straightforward. Criteria include your credit rating and Total Debt Servicing Ratio (TDSR) (more on later).

For example, if you are eligible and want to take the maximum 75% loan, work out the sums for your 25% down payment and the 75% loan quantum.

Based on the loan amount, interest rate, and your preferred or maximum eligible loan tenure, calculate how much you would need to pay per month to repay the debt fully. For convenience, use our mortgage calculator to compute the estimated monthly repayments you need.

Decide how much of your monthly income you intend to spend on paying the mortgage instalments. This will decide your preferred TDSR ‘limit’, and you can then work out the ‘full’ income for how much you need to buy a condo (i.e. 100%).

If you are trying to find out the minimum income you need to earn, then legally, you can use up to 55% of your income on the mortgage (assuming you have no other debts). If you want a buffer and don’t want to ‘spend’ your entire TDSR quota on the home loan, you can adjust downwards.

As there isn’t a limit to how much of your TDSR you devote to your condo mortgage, you can use up to 55% of your monthly gross income for your mortgage repayments. Good news: you’ll end up incurring a shorter loan tenure and paying lower overall interest costs. ‘Bad’ news: you won’t be able to borrow more money to finance other big purchases (e.g. a car) until your mortgage is fully repaid.

As long as your TDSR doesn’t exceed 55%, and you have enough savings or cash on hand to make the minimum condo down payment of 25% – at least 5% must be paid in cash, and the remaining 20% can be paid using your CPF or cash – you may be well on your way to completing your purchase of a condo in Singapore.

Let’s say you are looking at 25 years of tenure and an interest rate of 2.95% p.a.. Assuming a 55% TDSR, you must earn a gross household income of at least $6,430 to afford a $1,000,000 property.

According to the Manpower Research and Statistics Department of Singapore, the median gross monthly income from work (including employer CPF contributions) of full-time employed residents in 2023 is $5,197.

Based on this figure and the table above, it would seem that an entry-level condo in the RCR and OCR is affordable for many dual-income Singaporean households. This is especially true if they have no other debt obligations or children. A working couple would likely joint-borrow to finance a home together instead of purchasing a home on one individual’s income.

Hence, "How much salary do you need to buy a condo in Singapore?" isn’t the question they should be worried about. Rather, it’s "How can I afford the condo down payment" and "How much condo down payment do I need to pay upfront".

So, while it may be a stretch to buy a private condo as your first home, once you have worked for a few years and managed to save up enough for the down payment, you can consider buying a condo.

In this guide, we can only provide estimated figures. However, when you assess how much salary you need to buy a condo in Singapore, you shouldn’t only consider your debt servicing limits; factor in your cash flow situation too. You’ll have to secure a bank loan and figure out how to finance your condo purchase.

If you are unsure how to do so, you can approach different banks or speak to a mortgage professional for more advice.

Thinking about buying a condo? Wondering how to afford a condo in Singapore? Start by figuring out what options are available now and how you can finance one. Speak to a mortgage professional After you’ve decided on your property, you’ll need to secure a bank loan.

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