Only top 5% of Singapore earners can afford a landed property: study

Mortgage payments may cost up to $9,086 per month.

With the skyrocketing prices of landed properties in Singapore, an average terrace house sold in H1 can only be afforded by buyers with a monthly income of around $34,646 or those who belong to the top 5% earners in Singapore or professionals such as specialist medical practitioners, CFOs, financial directors, and lawyers, a study by ValueChampion revealed.

“If we assume that you are making a downpayment of 25%, you will need $714,590 for the downpayment and will pay about S$9,086 for your monthly mortgage payment given an interest rate of approximately 2%,” ValueChampion junior research analyst Anastassia Evlanova explained.

Also read: Cooling measures to curb demand for landed homes

Based on their research, the firm found that the most expensive properties are Good Class Bungalows (GCBs) which typically cover over 1,400 sq m and are quite rare, with only around 2,700 of them built mainly in District 10 and 11. Their costs falls to more than $10,000 per square foot.

Detached properties came in next with average prices sold for $13.1m which translates to a rate of $9,002 psf on average. Meanwhile, semi-detached properties and terrace houses were sold for $4.12m and $2.86m on average in H1.

“Furthermore, landed properties come with different types of leaseholds which can also change how much a home costs,” Evlanova explained. “Freehold properties are the most expensive, followed by 999-year leaseholds and 99-year leaseholds.”

Also read: Landed home resales jumped 12.7% in Q2

In this case, Evlanova noted that smaller 99-year lease semi-detached landed homes with around 10-30 years left may tend to be cheaper. According to her, a few cost $300,000 to $400,000, making it cheaper than the average price of a 4-room HDB resale flat.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

This got the nod from industry players at Ubisoft Singapore x Gamescom.
This is due to the planned reopening of Singapore’s borders and economy.
This is according to a joint report by SNEF & Kincentric.
DBS expects 150 talents to take part in this initiative.
The country ranked first in innovation input and investment sub-indeces.
Singtel showed the most growth.
Its net promoter score rose 35% in 2021 from end-2020.
This is the first time that the insurance industry has taken the lead against banks.
The initiative is directed towards the promotion of intergenerational dialogue.
This is the result of CapitaLand Limited’s restructuring efforts.
MOM, MND, and MOH were in charge of developing the standards.
Two nightlife establishments were revoked of their food licenses.
Mapletree companies showed the most growth.