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
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.
| TOWNS | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 |
|---|---|---|---|---|
| ANG MO KIO | S$520,000 | S$538,000 | S$594,000 | S$531,500 |
| BEDOK | S$518,000 | S$523,000 | S$530,000 | S$514,000 |
| BISHAN | S$690,000 | S$715,000 | S$707,000 | S$706,500 |
| BUKIT BATOK | S$590,000 | S$595,000 | S$593,000 | S$591,500 |
| BUKIT MERAH | S$838,000 | S$860,000 | S$856,000 | S$895,000 |
| BUKIT PANJANG | S$493,000 | S$508,000 | S$503,000 | S$528,000 |
| BUKIT TIMAH | * | * | * | * |
| CENTRAL | S$894,000 | * | * | * |
| CHOA CHU KANG | S$495,000 | S$500,000 | S$508,000 | S$510,000 |
| CLEMENTI | S$597,500 | S$607,400 | S$561,000 | S$600,000 |
| GEYLANG | S$668,000 | S$610,000 | S$615,000 | S$588,000 |
| HOUGANG | S$525,000 | S$532,500 | S$560,000 | S$563,500 |
| JURONG EAST | S$492,000 | S$473,000 | S$497,500 | S$483,400 |
| JURONG WEST | S$476,000 | S$500,000 | S$490,000 | S$495,000 |
| KALLANG/WHAMPOA | S$778,900 | S$790,400 | S$830,000 | S$848,000 |
| MARINE PARADE | * | * | * | * |
| PASIR RIS | S$540,000 | S$554,000 | S$555,000 | S$570,000 |
| PUNGGOL | S$590,000 | S$600,000 | S$605,000 | S$633,000 |
| QUEENSTOWN | S$850,000 | S$928,000 | S$928,000 | S$897,500 |
| SEMBAWANG | S$556,900 | S$556,900 | S$551,000 | S$565,000 |
| SENGKANG | S$560,000 | S$558,000 | S$575,000 | S$580,000 |
| SERANGOON | S$559,000 | S$575,000 | S$600,000 | S$604,500 |
| TAMPINES | S$564,000 | S$569,000 | S$579,000 | S$600,000 |
| TOA PAYOH | S$715,000 | S$780,000 | S$750,000 | S$834,000 |
| WOODLANDS | S$490,000 | S$498,000 | S$515,000 | S$512,000 |
| YISHUN | S$491,500 | S$500,000 | S$520,000 | S$535,000 |
| AVERAGE RESALE PRICE | S$603,825 | S$603,096 | S$609,674 | S$616,757 |
| Source: HDB | ||||
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
| District | Towns | Average Price for 2023 (psf) | Average Price for 2022 (psf) |
Price Growth for 2022 to 2023
|
|---|---|---|---|---|
| 1 | Raffles Place & Marina Bay | 2,007 | 2,076 | -3.30% |
| 2 | Tanjong Pagar & Anson | 1,946 | 2,052 | -5.20% |
| 3 | Queenstown, Tiong Bahru & Alexandra | 1,982 | 1,873 | 5.80% |
| 4 | Telok Blangah & Sentosa | 1,883 | 1,626 | 15.80% |
| 5 | Clementi & Pasir Panjang | 1,554 | 1,444 | 7.60% |
| 6 | City Hall & Clarke Quay | 3,544 | 3,048 | 16.30% |
| 7 | Bugis & Rochor | 2,331 | 2,157 | 8.10% |
| 8 | Little India & Farrer Park | 1,659 | 1,510 | 9.90% |
| 9 | Orchard Rd & River Valley | 2,236 | 2,196 | 1.80% |
| 10 | Holland Rd & Bt. Timah | 2,209 | 2,148 | 2.80% |
| 11 | Novena & Newton | 1,721 | 1,782 | -3.40% |
| 12 | Serangoon, Toa Payoh & Balestier | 1,605 | 1,506 | 6.60% |
| 13 | Braddell & Macpherson | 1,732 | 1,592 | 8.80% |
| 14 | Paya Lebar & Geylang | 1,468 | 1,293 | 13.50% |
| 15 | Tanjong Rhu, Marine Parade & East Coast | 1,685 | 1,563 | 7.80% |
| 16 | Bedok & Bayshore | 1,409 | 1,302 | 8.20% |
| 17 | Loyang & Changi | 1,375 | 1,155 | 19.00% |
| 18 | Simei, Tampines & Pasir Ris | 1,277 | 1,169 | 9.20% |
| 19 | Hougang, Punggol & Sengkang | 1,437 | 1,337 | 7.50% |
| 20 | Ang Mo Kio & Bishan | 1,626 | 1,549 | 5.00% |
| 21 | Upper Bukit Timah & Ulu Pandan | 1,598 | 1,492 | 7.10% |
| 22 | Lakeside & Jurong | 1,033 | 1,003 | 3.00% |
| 23 | Choa Chu Kang, Bt. Batok & Dairy Farm | 1,332 | 1,192 | 11.30% |
| 25 | Woodlands, Admiralty & Kranji | 1,118 | 1,010 | 10.70% |
| 26 | Upper Thomson, Springleaf & Lentor | 1,280 | 1,168 | 9.60% |
| 27 | Sembawang & Yishun | 1,320 | 1,213 | 8.70% |
| 28 | Seletar & Yio Chu Kang | 1,369 | 1,248 | 9.70% |
| 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
| Bank | Monthly Instalment | 1st Yr Interest | Lock-in Period |
|---|---|---|---|
| DBS | $ 2,340 | 2.880 | 2 years |
| DBS | $ 2,345 | 2.900 | 2 years |
| DBS | $ 2,397 | 3.100 | 2 years |
| DBS | $ 2,437 | 3.250 | 2 years |
| DBS | $ 2,571 | 3.750 | 3 years |
Find The Best HDB Fixed Mortgage LoanEnquire Now
Best Fixed Mortgage Rates for Private Homes
| Bank | Monthly Instalment | 1st Yr Interest | Lock-in Period |
|---|---|---|---|
| DBS | $ 2,340 | 2.880 | 2 years |
| DBS | $ 2,345 | 2.900 | 2 years |
| DBS | $ 2,397 | 3.100 | 2 years |
| DBS | $ 2,437 | 3.250 | 2 years |
| DBS | $ 2,571 | 3.750 | 3 years |
Find The Best Private Home Fixed Mortgage LoanEnquire Now
Find All The Best Home Loans in SingaporeFind Out More
Read More:
- Explaining the Loan-to-Value (LTV) Ratio
- Home Loan Basics: Bank Loans vs HDB Loans
- 4 Ways To Save On Your Mortgage Loan
- How To Refinance Your Mortgage Loan For More Savings
- Fire, Home & Mortgage Loan Insurance: 3 Ways to Help Protect Your First Home in Singapore
Cover image source: Pexels
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