A study from financial information site ValueChampion shows that only the top wage earners in the country can actually afford to purchase an average terrace house sold in H1. Lawyers, financial directors, CEOs, specialist medical practitioners, and the like, or those who make about S $34,646 or more monthly can afford such houses. This is partly because wth mortgage payments are approaching the S $10,000 mark since landed property prices have shot up of late. These fortunate individuals are in the top 5 percent of wage earners in Singapore.
Anastassia Evlanova, a junior research analyst at ValueChampion says, “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 has found that the highest priced properties are Good Class Bungalows (GCBs). These dwellings are over 1,400 sq m, and what’s more, they are quite a rarity.Approximately 2,700 GCBs have been erected, primarily in District 10 and 11. This translates to a cost of over S $1,600 per square foot. This translates to a cost of over S $10,000 per square foot.
Next in price are detached properties, which sell for S $13.1 million, or an average of S$1,276 per square foot. Then, the average cost for terrace and semi-detached houses in H1 is S $ 2.86 million and S $4.12 million, respectively. For terraced houses, this translates to S $1,261 per square foot, and S $1,168 per square foot for semi-detached houses.
Ms. Evlanova also said, “Furthermore, landed properties come with different types of leaseholds which can also change how much a home costs. Freehold properties are the most expensive, followed by 999-year leaseholds and 99-year leaseholds.”
Therefore, smaller 99-year lease semi-detached landed homes with around 10-30 years left will most likely be less pricey. Some actually cost between $300,000 to $400,000, a price tag that’s less expensive than the average price of a 4-room HDB resale flat.
Read related: Home Buying Guide – Landed Property