How Much Should Your First Home Cost?

When you buy a home for the first time, it might be hard to know if you are overpaying. Here are some things to consider before making your first purchase.

ValueChampion Editorial Team

by ValueChampion Editorial Team on May 28, 2024

homes in the country side

Maybe you’ve been working for quite a few years, saving money to buy your home one day. Maybe you are getting married, and now you’ve finally saved enough to make it happen. Whatever the case, with homes easily costing close to a million dollars or more, you won’t be able to do it without the help of some bank financing.

But, how much should you really borrow? While it’s rather easy to figure out how much you are allowed to borrow by the government and banks in Singapore, it’s a whole another issue when you are trying to assess how much home loan you should be getting such that it wont put undue stress on your finances. If you are one of those people, this guide can help you get started in getting to your answer.

Find the Cheapest Home Loans in Singapore

HDB in Singapore
Source: Unsplash

How much should you expect to pay for your home?

In order to help you understand the approximate cost of a home these days in Singapore, we collected the median price of 4-Room HDB Flat resales by town.

According to the data released by the Housing & Development Board, you can expect to pay anywhere between S$5000,000 and S$900,000 for a 4-room HDB flat, depending on which town you are residing. Given that most 4-room HDBs are generally around 1,000 sq ft, this translates to around cost of S$500 to S$900 per square foot.

TOWNSQ2 2023Q3 2023Q4 2023Q1 2024
ANG MO KIOS$520,000S$538,000S$594,000S$531,500
BUKIT BATOKS$590,000S$595,000S$593,000S$591,500
BUKIT MERAHS$838,000S$860,000S$856,000S$895,000
BUKIT PANJANGS$493,000S$508,000S$503,000S$528,000
CHOA CHU KANGS$495,000S$500,000S$508,000S$510,000
JURONG EASTS$492,000S$473,000S$497,500S$483,400
JURONG WESTS$476,000S$500,000S$490,000S$495,000
PASIR RISS$540,000S$554,000S$555,000S$570,000
TOA PAYOHS$715,000S$780,000S$750,000S$834,000
AVERAGE RESALE PRICES$603,825S$603,096S$609,674S$616,757
Source: HDB
balconies on an apartment block
Source: Pexels

Cost of a private residences, on the other hand, was much higher than cost of HDBs, as one would expect. The median transaction price for all private properties ranged from S$800,000 to S$2,700,000, depending on the town, a much bigger variation than that of HDBs.

Because the size private residences vary a lot more than HDBs, we also calculated the median price per square foot of all private residence transactions, which ranged from S$1,000 to S$2,000 depending on the neighbourhood.

Average Price and Price Growth of Resale Condos in Singapore

DistrictTownsAverage Price for 2023 (psf)Average Price for 2022 (psf)
Price Growth for 2022 to 2023
1Raffles Place & Marina Bay2,0072,076-3.30%
2Tanjong Pagar & Anson1,9462,052-5.20%
3Queenstown, Tiong Bahru & Alexandra1,9821,8735.80%
4Telok Blangah & Sentosa1,8831,62615.80%
5Clementi & Pasir Panjang1,5541,4447.60%
6City Hall & Clarke Quay3,5443,04816.30%
7Bugis & Rochor2,3312,1578.10%
8Little India & Farrer Park1,6591,5109.90%
9Orchard Rd & River Valley2,2362,1961.80%
10Holland Rd & Bt. Timah2,2092,1482.80%
11Novena & Newton1,7211,782-3.40%
12Serangoon, Toa Payoh & Balestier1,6051,5066.60%
13Braddell & Macpherson1,7321,5928.80%
14Paya Lebar & Geylang1,4681,29313.50%
15Tanjong Rhu, Marine Parade & East Coast1,6851,5637.80%
16Bedok & Bayshore1,4091,3028.20%
17Loyang & Changi1,3751,15519.00%
18Simei, Tampines & Pasir Ris1,2771,1699.20%
19Hougang, Punggol & Sengkang1,4371,3377.50%
20Ang Mo Kio & Bishan1,6261,5495.00%
21Upper Bukit Timah & Ulu Pandan1,5981,4927.10%
22Lakeside & Jurong1,0331,0033.00%
23Choa Chu Kang, Bt. Batok & Dairy Farm1,3321,19211.30%
25Woodlands, Admiralty & Kranji1,1181,01010.70%
26Upper Thomson, Springleaf & Lentor1,2801,1689.60%
27Sembawang & Yishun1,3201,2138.70%
28Seletar & Yio Chu Kang1,3691,2489.70%
Source: Edgeprop, Note: District 24, which comprises Lim Chu Kang and Tengah, is excluded because there have been no resale transactions for condos in this district since 2014.

Related: How Much Do You Need To Earn Per Month To Buy A Condo in Singapore?

Don’t Maximise Your TDSR or LTV Limit

Given these high prices, it’s almost a necessity get a bank home loan when you are purchasing your first home.

We think borrowing an increasing amount to fund your home purchase might not be the best idea, especially if the real estate market starts to stagnate. It could be in your interest to hold out borrowing to purchase your home given that central banks around the world are starting to cut their interest rates, which would in turn translate to lower mortgage rates here in Singapore too.

Given the uncertain global macroeconomic state, high number of lay offs, and high property prices in Singapore, we suggest that you do not borrow more than 50% of your home value. This should give you ample buffer to finance your home should interest rates continue to stay high for years to come.

Learn more about all the best mortgage rates currently on the market below.

Best Fixed Mortgage Rates for HDBs

BankMonthly Instalment1st Yr InterestLock-in Period
DBS$ 2,3452.9002 years
DBS$ 2,3582.9502 years
DBS$ 2,3973.1002 years
DBS$ 2,4373.2502 years
DBS$ 2,5713.7503 years

Find The Best HDB Fixed Mortgage LoanEnquire Now

Best Fixed Mortgage Rates for Private Homes

BankMonthly Instalment1st Yr InterestLock-in Period
DBS$ 2,3972.9002 years
DBS$ 2,7092.9502 years
DBS$ 2,3453.1002 years
DBS$ 2,3583.2502 years
DBS$ 2,3973.7503 years

Find The Best Private Home Fixed Mortgage LoanEnquire Now

Find All The Best Home Loans in SingaporeFind Out More

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Cover image source: Pexels

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