Here’s how much you need to earn to afford a condo (2022)

7 min read

This article has been updated to include the average prices in Q2 2022 and the latest TDSR. 

Looking to buy private property but not sure how much you can afford? Never fear, for 99.co is here — to help you make informed property decisions and beyond!

When it comes to buying property, it pays to be mindful when working out how much you can borrow, so you don’t end up with a very expensive mistake.

To make life easier for property seekers in Singapore, we’ve crunched the numbers to provide the approximate income that you need to be earning to afford a condo in locations within the Core Central Region (CCR) or the prime districts, Rest of Central Region (RCR) or the city fringes, and Outside Central Region (OCR) or the suburbs.

So how much is a condo in Singapore? The price range between new and resale condos is considerable, with new condos being (expectedly) more expensive.

how much to earn to buy a condo (2022)

These estimates are made based on the ability to service mortgage repayments with the following assumptions in mind:

For this article, we’re looking at 2-bedroom condo units. Average prices are derived from 99.co’s Researcher, based on sales transactions that occurred in the first half of 2022. We also used 99.co’s mortgage calculator to calculate estimated monthly mortgage repayments

 

Eligibility versus affordability 

Eligibility is not to be confused with affordability. In the property-buying context, it is important to note that one’s eligibility to take up a loan is not the same as one’s ability to afford a property.

How do you afford a condo in Singapore? Some financial experts say that your monthly mortgage repayment, including principal and interest, should not exceed 30% of your gross monthly income.

This is the same as the Mortgage Servicing Ratio (MSR) for HDB flats and new ECs. Others say that such requirements are too stringent.

person calculating home loan instalments
Pick a home based on what you can afford for both upfront and ongoing payments.

While opinions on what constitutes a golden mortgage-to-income ratio may differ, what’s important to note is that financial sustainability should always be a key focus when making big-ticket purchases like property. This is so you don’t end up starved of cash for your other goals (or having to eat instant noodle every day).

Disclaimer: While every effort has been made to ensure that the information provided here is accurate, do note that it is merely for reference purposes and do not constitute investment or financial advice. 

The estimated monthly income you need to buy a new condo

Market segment Average price Loan amount (75%) Downpayment (25%) Estimated monthly instalment Min. gross monthly income to satisfy 55% TDSR requirement
CCR S$1.889 M S$1.416 M S$472,250 S$6,361 S$11,565
RCR S$1.825 M S$1.368 M S$456,250 S$6,146 S$11,174
OCR S$1.305 M S$978,750 S$326,250 S$4,395 S$7,990

If you meet the minimum income requirements, here are some new projects with 2-bedder units that hover quite comfortably within the average price ranges in the respective market segments:

CCR: 

RCR: 

OCR:

 

The estimated monthly income you need to buy a resale condo 

Condo prices have been rising steadily at a 22 month unbroken streak, even with the introduction of cooling measures late 2021. Condos in the OCR accounted for 60.2% of the total sales volume, while RCR and CCR units came in at 24.7% and 15.1% respectively. This doesn’t come as surprise as OCR properties are more affordable than those in the RCR and CCR.

Market segment Average price Loan amount (75%) Downpayment (25%) Estimated monthly instalment Min. gross monthly income to satisfy 55% TDSR requirement
CCR S$2.096 M S$1.572 M S$524,000 S$7,058 S$12,832
RCR S$1.507 M S$1.130 M S$376,750 S$5,075 S$9,227
OCR S$1.060 M S$795,000 S$265,000 S$3,569 S$6,489

If you’re looking to buy resale private property, here are some projects with 2-bedder units that nestle comfortable within the average price ranges in the respective market segments:

CCR: 

d'leedon
Artist’s impression of D’leedon.

RCR: 

OCR: 

Median salary in Singapore: Can I afford a condo?

Now that you’re caught up with how much both new and resale condos cost in Singapore, you might be asking the million dollar question (literally): Can I really afford to buy a condo?

We’ll look at the income numbers published by the Ministry of Manpower’s Research and Statistics Department.

According to them, the median gross monthly income from work (this includes employer CPF contributions) of full-time employed residents in 2021 is S$4,680, a 3.22% increase from the previous year.

 

For the uninitiated, the median takes the income in the middle, so half of the workers earn less than the numbers below, and half earn more.

 

ministry of manpower income summary 2021
Source: Ministry of Manpower
If you’re looking at condos as a couple unit, you’ll have twice the earning power to finance your condo purchase. With your combined income, condos in the OCR and RCR will fall within your monthly affordability range.

 

After being in the workforce and saving up for a few years, you and your partner will probably be able to afford the hefty downpayment and sign that cheque to buy your dream condo.

Find out more about your affordability range with 99.co’s affordability calculator!

[Additional reporting by Virginia Tanggono and Jamie Wong]


Would you prefer to buy a new condo or a resale condo? Voice your thoughts in our comments section below.

If you found this article helpful, 99.co recommends New launch condo projects potentially launching in 2022 and With Shun Tak walking away from High Point, what does it mean for en bloc deals?

Looking to sell your property?

Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.

One easy way is to send us a request for a credible and trusted property consultant to reach out to you.

Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.

If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.

Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.

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