Introduction
Life as a Single in Singapore comes with many advantages, from greater career mobility to a higher quality of life, free from the burden of raising a child.
Unfortunately, the advantage is not translated across to property ownership and real estate investing. Married couples tend to have a head start when it comes to housing subsidies and housing options in Singapore.
In this article, we will focus on helping you, a Single living in Singapore, navigate the challenges of buying a condo. We will equip you with everything you need to know, to work towards buying your first condo.
Quick Intro – Decoupling Expertise
Before you commit the next 5 mins of your life towards reading this article, it helps to find out who’s behind the keyboard.
We are a team of specialist realtors specialising in helping our readers research and shortlist investment properties for both homestay and investment objectives.
Having noticed an information gap towards helping investment minded Single buy and select the right property.
We seek to answer every real estate related query that a Single could have, with well researched content and non obligatory consults.
Checklist for Singles buying their first condo
In our Single’s condo purchase guide, we will be touching on the following topic.
- Housing options for Singles
- Getting a sense of condo pricing in Singapore
- Knowing how much you need to afford a condo
- Knowing how much loan you can take
- Selecting the right condo
- Understanding the implication of getting a condo
What are your housing options as a Single in Singapore ?
For the sake of those that are uninitiated to the housing eligibility rules for Singles in Singapore, allow us to quickly summarise the housing options available for Singles.
Feel free to skip ahead if this is something that you already know.
Housing options for Singles 35 and above
- Resale HDB – no income ceiling, apply via HDB Singles scheme or Joint Singles Scheme
- New BTO – income ceiling of $7,000, ballot under HDB Singles or Joint Singles Scheme
- New EC – combine household income of below $16,000, only eligible when apply under the Joint Singles Scheme.
- Private Condo and Resale EC
Housing options for Singles below 35
- Private Condo
- Resale EC
Having established the housing options available, it is obvious that if you are under 35, private condo and resale EC is your go-to option.
If you are 35 and above and you earn an income greater than $7,000. Note that this will put you out of range for BTO application and HDB housing grants. And if you are interested in real estate investing then buying a condo would be your prioritised option as well.
What are the prices of condos suitable for Singles in Singapore ?
For most Singles, affordability would be your main consideration. 1 bedroom or 2 bedroom condos would be the most common consideration for most Singles.
In this section, we will jump start the whole condo affordability discussion by establishing the price range for 1 and 2 bedroom condos for different regions in Singapore.
| Location | Price Range (1 bedroom condo) | Price Range (2 bedroom condo) |
| CCR | $800,000 to $1,400,000 | $990,000 to $2,100,000 |
| RCR | $700,000 to $1,300,000 | $1,200,000 to $1,800,000 |
| OCR | $700,000 to $1,000,000 | $1,100,000 to $1,300,000 |
* Prices updated as of Q3 2024, for updated pricing please whatsapp us
What are the additional costs to be incurred when buying a condo as a Single ?
Aside from funding the purchase of the property itself, there are transactional costs to be taken into consideration.
- Buyer stamp duty
- Legal Fee ~ $3,000
- Valuation ~ $600
Buyer Stamp Duty
Amongst the transactional cost, buyer stamp duty is the most significant transactional cost. Purchasing a $1 mil property can easily reck up a buyer stamp duty of $24,600.
Buyer stamp duty is levied via a progressive tax rate on the value of the property purchased.
| Purchase price or market value of the property | BSD rates for residential properties |
| First $180,000 | 1.00% |
| Next $180,000 | 2.00% |
| Next $640,000 | 3.00% |
| Next $500,000 | 4.00% |
| Next $1,500,000 | 5.00% |
| Remaining amount | 6.00% |
How do you go about funding a condo as a Single ?
For singles purchasing your first property, funding such a big ticket item could be a foreign and daunting process. Let’s simplify it for you by breaking it down into 3 simple funding components.
Funding the purchase of the property itself
The following structure is applicable for the purchase of all private condo in Singapore
- 5% cash – mandatory stated by MAS limit
- 20% cash or CPF
- 75% bank loan
Note that the 75% bank loan component is subject to your maximum loan eligibility. If the maximum loan quantum that you are eligible for is insufficient to cover the full payment of the property, additional cash or CPF would be required to patch the gap.
Funding the transaction cost
With regards to the buyer stamp duties, legal fees and valuation fee, it can be funded via cash or CPF.
Estimating the cost requirement for condos of different price points
Working towards giving you an idea of how much cash and cpf savings you need to, we took the liberty to model out the funds required to purchase a condo at different price points.
| Cost of Condo | 900,000 | 1,000,000 | 1,100,000 | 1,200,000 | 1,400,000 |
| Cost pertaining purchase of property itself | |||||
| 5% Cash | 45,000 | 50,000 | 55,000 | 60,000 | 70,000 |
| 20% Cash or CPF | 180,000 | 200,000 | 220,000 | 240,000 | 280,000 |
| 75% Bank Loan | 675,000 | 750,000 | 825,000 | 900,000 | 1,050,000 |
| Transactional cost involved in purchasing property | |||||
| Buyer stamp duty | 21,600 | 24,600 | 28,600 | 32,600 | 40,600 |
| Legal fee | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 |
| Valuation Fee | 600 | 600 | 600 | 600 | 600 |
How much cash and CPF savings do you need ?
| Cost of Condo | 900,000 | 1,000,000 | 1,100,000 | 1,200,000 | 1,400,000 |
| 5% Mandatory cash | 45,000 | 50,000 | 55,000 | 60,000 | 70,000 |
| Additional Cash or CPF on top of 5% cash(to fund both condo and transactional cost) | 205,200 | 228,200 | 252,200 | 276,200 | 324,200 |
| Total Cash and CPF Required | 250,200 | 278,200 | 307,200 | 336,200 | 394,200 |
How much loan do you need ?
| Cost of Condo | 900,000 | 1,000,000 | 1,100,000 | 1,200,000 | 1,400,000 |
| 75% Bank Loan | 675,000 | 750,000 | 825,000 | 900,000 | 1,050,000 |
Aside from having enough cash and cpf savings, you will also need to qualify for the loan quantum that makes up 75% of your condo’s purchase price.
To understand how you can qualify for the loan required, you must first understand the concept of total debt servicing ratio (TDSR).
Total Debt Servicing Ratio (TDSR)
TDSR, is a ratio stipulated by MAS to prevent property owners from over leveraging when they purchase property.
It stipulates that the monthly mortgage payment, coupled with other monthly recurring debt payment must not supersede 55% of your gross monthly income.
Example
John earns a gross monthly income of $10,000, his total monthly recurring mortgage coupled with his car instalment and other loan payments must not exceed $5,500, 55% of his gross monthly income.
Minimum salary you need to afford a condo as a Single
To get a sense of how much you need to earn monthly to fund your condo purchase. We will work backwards using the loan quantum requirement we set out above for the purchase of condos at different price points.
The following assumptions is made
- Mortgage Interest rate at 4%
- Assuming no other recurring monthly payment
- Age: 35
| Price of Condo | 900,000 | 1,000,000 | 1,100,000 | 1,200,000 | 1,400,000 |
| 75% Bank Loan | 675,000 | 750,000 | 825,000 | 900,000 | 1,050,000 |
| Minimum Salary Requirement (to qualify for loan) | 6,800 | 7,500 | 8,100 | 8,800 | 9,200 |
How to get an in principle loan approval for your loan ?
An in principle loan approval is also commonly known as an IPA, it is a document to state a bank preliminary approval of your loan quantum.
This gives you a confirmation of your maximum eligible loan quantum and coupled with the savings you have on hand you can work out a budget for your condo purchase.
To get an IPA, you must first make contact with a mortgage banker representing a bank and submit the necessary documents which include a proof of income consisting mainly of your pay slip.
1 Click IPA Application
Looking to shop for your first condo ? It is always wise to get your In principle loan approval done first.
Do it with 1-text now. Drop us a whatsapp text and we will help you get your IPA application process settled
Need help working on the financial calculations – Single Financial Calculation Service
Is working on the numbers tailored to your financial circumstances a hurdle to overcome ?
Drop us a whatsapp text, and we can help you overcome that with a detailed financial calculation.
Fyi, this is something we do for many Singles to get them started on purchasing their first condo.
Additional cost Singles should take note of when purchasing condo
Aside from the cost of funding the property and transactional cost, you should also buffer in some additional cost to cater for renovation, the purchase of furniture and electrical appliances.
As an estimate, you should cater at least $30,000 for renovation and another $10,000 for purchase of furniture and electrical appliances.
How to select the right condo ?
Given that the common unit type that a Single will go for is a one bedroom or a two bed room condo, the selection criteria will differ significantly from that of a married couple purchasing a 3 bedder unit.
Assuming you are looking to purchase a unit for both homestay and investment purposes, you should be looking out for the following criterias.
Proximity to MRT
Proximity to transportation nodes and proximity to the city centre plays an important role in influencing the price appreciation of 1 bedroom condo and 2 bedroom condo as compared to 3 bedroom unit for family home stay.
Selecting a condo development that is close to a mrt station, ideally a MRT interchange, will not only give you greater convenience when living in the unit. But also gives you an edge when renting the unit out or selling to an investor in the future.
For more details on best places to buy a rental property refer to article link inline.
Entry price and quantum of purchase
When selecting your unit it is important to have affordability on top of mind for your own benefit and for future resellability.
Your future buyer would most probably be a budget conscious Single as well. So consider how much you will incur in purchasing your unit eg. $1 mil and mark it up with a $200k profit, and consider if this future resale price is still palatable for your future buyer vis a vis other comparable condo development.
Lease life
Lease decay is the depreciation in value of a property as its age. A property depreciate significantly in value as it pass its 30 year mark.
When selecting your condo it is important to choose a relatively young condo with remaining lease that can cater for the duration you want to live in it and allow you to resell it to a future buyer with no concern over lease decay.
Size of development
No of units in a development is a factor to consider as well. Selecting a unit in a small boutique development with little historical transaction will create an issue when reselling.
You will not have a recent transaction price to benchmark against.
Layout
Layout and facing is an important consideration if you plan to live in the condo itself. The following will be key factors to look out for when reviewing a unit’s layout.
- Efficient layout maximising liveable space
- Exposure to natural light but away from morning or afternoon sun
- Well partitioned living spaces for bedroom, living room and kitchen
Other factors to consider
For more details on attributes to look out for refer to article What condo is good for investment.
Drop us a text if you need help shortlisting condo developments
How to select the right property agent to assist you ?
First off note that, as a buyer you will not need to pay any agent commission. Property agent representing you will collect a co-broke commission from the seller agent for resale condo or developer for new launch condo.
To achieve your goal of purchasing a condo that fits your budget, optimise liveability and investment potential.
You should be looking out a agent that is able to help you do the following
- Help you work out your affordability and budget
- Help you resolve the financing, loan eligibility issues that you may encounter
- Research and create a shortlist of property that fits your criteria
- Understand what property type will best suit a Single purchasing your first property
Implications of getting a condo as your first property
Getting a condo as your first property is an achievement but it does come with some implication with the fact that you are now a private property owner. It helps to know these limitations beforehand.
- You will have to serve a wait out period of 15 months to be eligible to purchase a resale HDB, even after you reach the age of 35 years old
- Similarly you will need to serve a wait out period of 30 months to be eligible to purchase a BTO or new EC, even after you reach the age of 35 years old.
