How Much is the Cheapest Condo Singapore 2022?
If you’ve been planning on buying an apartment in Singapore, you may have been bewildered and intimidated by the fees and expenditures needed. We get down to business in this piece.
Purchasing a condo in Singapore, let alone a freehold unit, might be too costly. But did you guys know that there are freehold condominiums for as little as $600,000?
The prices of condominiums and flats can vary greatly depending on aspects such as location, utilities, nearby amenities (e.g. MRT station, famous schools), and the age or condition of the property.
There will always be the odd neighborhood or unit where the price is significantly more or cheaper than the norm.
With all of that, we will address some of the most commonly asked concerns about renting a condo apartment in Singapore.
To learn more about the fees or expenditures associated with renting a condo apartment in Singapore, be sure to read all the way through so you don’t miss out on any important information!
|Freehold Condos vs. Leasehold Condos|
|Freehold||Held by owner indefinitely|
|99-year leasehold||Reverts back to the state after 99 years|
|999-year leasehold||Practically freehold, due to the long lease period.|
If you’re unfamiliar with the real estate market, the phrases 99-year, 999-year, freehold, and leasehold might be perplexing. So, let us make it simple for you.
Anyone who owns a freehold property can keep it eternally. However, a 99-year leasehold property goes back to the government after the lease expires.
Meanwhile, any properties with 999-year leases are a relic from the colonial era. For all kinds of reasons, this is comparable to freehold.
There are clauses in the law that allow the government to recover the land for essential infrastructure for security reasons. If your property is blocking a major roadway, the fact that it is freehold will not safeguard it.
Then there is the prospect of renovation as a whole. If a contractor makes an en bloc offer on your freehold condo and the other residents approve, you will still be forced to leave.
As a general rule, the starting sale price of a freehold property is 10 to 15% greater than that of a leasehold unit in the same region.
Which is worth more, freehold or 99 years? – Cheapest Condo in Singapore
This is a challenging topic to address since it is hard to distinguish specific factors of value of the property.
An apartment with 70 years left on its lease, for example, but situated in the Central Business District, will almost certainly be worth more than a freehold property on the fringes of Punggol.
Similarly, if a freehold property is located near an MRT station, it might be difficult to determine how much of the greater worth is due to the freehold aspect of the property and how much is due to its accessibility.
The sale prices for condominiums can vary greatly depending on the location and age of the building. Condos in Singapore are not subsidized and are developed by private real estate developers.
They vary from basic condo apartments with basic facilities to luxurious flats in new projects with a plethora of facilities such as pools, gardens, and event spaces.
As of the first quarter of 2021, the average quoted price of a Condo in Singapore’s Outside of Central Region was around $1,000,000.
A 1-bedroom condo apartment recently has an average sale price of $1,025,386. Meanwhile, a two-bedroom apartment costs 42% more on average.
How much is the cheapest apartment in Singapore? – Cheapest Condo in Singapore
We know how hard it may be to locate a nice yet affordable condo apartment in Singapore, especially with the high cost of living. However, there are still a number of inexpensive condo apartments for rent in Singapore that you may check at.
The following is a list of the cheapest condo apartments in Singapore:
|Studio Apartments in Singapore||Price (SGD)|
|High Park Residences||$549,000|
Have you had your mind on that new condo for years? Maybe you’ve saved just enough and want to invest in it with your hard-earned money.
But how much would a typical condo set you back? A condo’s price, like that of most other properties, fluctuates according to location. Condos in affluent areas like Orchard Road and Sentosa, for example, may easily cost $6 million or more.
With that, here’s the estimated monthly income you need to get a new condo in Singapore:
|Area||Estimated price (SGD)||Loan amount (75%)||Downpayment (25%)||Estimated monthly installment||Minimum gross monthly income to satisfy 55% TDSR requirement|
|Rest of Central Region||$1.7 million||$1.3 million||$400k||$5,800||$10,600|
|Core Central Region||$2 million||$1.5 million||$500k||$6,700||$12,200|
|Outside Central Region||$1.1 million||$820k||$280k||$4,000||$7,300|
Therefore from how we see, for a property of $1.1 million, a Singaporean first time buyer needs to have at least $225,000 in CPF OA and $84,000 cash on hand (including Stamp) for a condo downpayment.
Do remember that if you have insufficient funds in your CPF OA, more cash will be required.
Private condo rental fees can vary substantially depending on the area and condition of the property. Renting a 3-bedroom condo monthly in prominent districts near Singapore center, such as Orchard, Tanglin, Bukit Timah and River Valley, starts at roughly $7,000 and may go up to $15,000 relying on how exquisite the unit is and its closeness to the CBD.
Rents for high-end luxury units, including beachfront houses in Sentosa and Keppel Bay, may vary from $8,300 to $13,000 per month. 3-bedroom condominiums in city outskirts start from $4,500 and could go up to $7000.
Condos in areas outside of the city center, such as Bedok, Pasir Ris, Changi, Ang Mo Kio, Tampines, Yishun, Woodlands, Jurong, Clementi, and Punggol are less costly, with monthly rentals ranging from $3,300 to $5,000.
Is It Worth Upgrading from an HDB Flat to a Freehold Condo? – Cheapest Condo in Singapore
To be able to transfer from your HDB apartment to a condo or landed property, you must have finished the Minimum Occupation Period for your HDB unit.
Usually, you must have resided in your HDB apartment for at least 5 years before you may move to private property.
The MOP is the period of time you should have physically occupied your HDB apartment before purchasing a private property or selling it.
However, upgrading to a freehold condo from an HDB flat is not really worth it.
Before upgrading from a HDB flat to a freehold condo, there are several factors you should consider and learn more about.
With that in mind, here are some of the reasons why upgrading from a HDB flat to a freehold condo isn’t always a smart option for some:
Certain private condos may be a poor investment. Therefore in this situation, staying on to your HDB may be a better option than to move out.
Bunches of fresh releases obtaining the Temporary Occupation Permit within such a short duration are one of the characteristics of a bad acquisition that we typically observe.
This can be easily recognized by consulting the URA Master Plan for new releases that may be planned near the time of your desired purchase.
Another instance would be purchasers being persuaded by promotional words such as en-bloc property, below valuation, and so on. Clients must look objectively behind the definitions of these phrases.
En-bloc may indicate an old property, and a low valuation may be due to other enigmatic factors.
Aside from the additional monthly mortgage repayment, you must pay quarterly maintenance costs for the private condominium.
In comparison to HDB maintenance expenses of $20 – $90 per month, private condominium maintenance fees can approach anywhere close to $500 per month.
There is no question that home prices will decline during every downturn; nonetheless, it is always more profitable to make a purchase when prices are reduced rather than waiting for property prices to bottom out.
You risk missing out if prices rebound faster than expected.
Moving to a private condo still necessitates the use of a mortgage. Once approved, you will be expected to make monthly mortgage payments.
If you would not have the required reserves to get you through financially difficult conditions, it is preferable to postpone your decision until your financial status improves.
Buying a condo in Singapore would necessitate extensive financial preparation ahead of time as you strive to make your condo fantasy a reality.
There are several aspects you should be completely informed of before making one of the most important decisions of your life.
Finding the best and cheapest condominiums in Singapore might be difficult, as you must also consider your financial stability and, of course, your monthly gross income.
With that, we hope that we were able to assist you in determining if it is truly worthwhile to purchase the cheapest condo in Singapore by offering some more important information about purchasing a condo unit in Singapore.
We had a wonderful time discussing this topic with you, and we hope to see you again on our next one!