Do you know how much does a new condo cost in Singapore? The Singapore government has made it very easy for foreigners to buy real estate, and even residential property. This new condo development is the first in Singapore to allow foreigners to buy it outright.
1. What’s the CPF for My Condo?
From the time you buy a condo in Singapore, you’ll need to pay CPF (the Central Provident Fund).
The CPF is your insurance against poverty and it is your only source of income during your stay in Singapore. You can pay CPF with some form of bank account or through an agent.
If you have any questions about CPF, please contact the National Housing Agency.
This Agency is located at No. 82 Beach Road and can be reached via Tel: +65 6930 2349 / +65 6930 2350; email: [email protected] .
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2. What About Additional Downpayment?
Some people have asked me how much money I paid for my condo in Singapore. The answer is not much.
Initially, when I bought the place, I was only able to pay the downpayment of $200,000. Later on, though, I got the chance to purchase a 5% share in it for $40,000 (after paying stamp duty) — that’s about $20k more upfront but less than 3 years later. So the total outlay in just a couple short years has ballooned to about $458,600!
The reason for this is twofold:
- It’s an illusion that you can buy a condo at such an affordable price if you are willing to sell your home and rent it out as a vacation home instead of a place to live. I knew this from my personal experience when I sold my home and rented out my apartment as a vacation house with some friends and family. This worked fine but was not financially rewarding since my rent was high relative to other condos nearby and this didn’t help with property appreciation either. It took quite some time before I could build up enough equity that it helped me get back on track with my mortgage payment (and thus boost property appreciation).
- My condo wasn’t worth much at all considering what it could fetch today if someone were interested in buying it now (given its location and condition). The cheapest that many people want to pay these days is around $1/sqft (many properties even go as low as $0.5/sqft), which has led many people to conclude they are getting better returns selling their place than renting it out instead of buying or selling it themselves. But remember: if you do have any equity left over after paying off the mortgage in 5-7 years then there is still plenty of value left over after you pay off your condo too!
- At one point, everyone wanted to come check out the place myself but since then there has been no need for anyone else because most of them have either gotten titles or moved elsewhere or simply sold their place outright now that they’re done with their construction projects (or whatever else they do). So today, I live there alone and am still paying down part of the mortgage every month — which is actually cheaper than renting a nice little apartment nearby!
3. Total Condo Downpayment (CPF + cash)
The purpose of this post is to give you an idea of what a new condo in Singapore might cost. This includes the minimum and maximum down payment (including stamp duty), property transfer tax (PTV) and stamp duty. Note that I have used a very simple calculator to do the calculations, based on the average prices posted on various property portals.
To give you some context, here’s another post which explains how much a new condo costs in Singapore.
You can find more information on the condo boom by looking at this post on The Condo Blog, here or even go to the Singapore Property Portal for more details about condo prices.
4. Total Condo Downpayment (Cash + Additional downpayment)
This is a good question and one that I have seen repeated many times. It’s a valid question but one which the answer can vary widely depending on your location and demographic. I know that some people are concerned about it, but in my experience, it’s not as much of a concern as you might think.
There are a few reasons why:
- The first reason is because by the time you pay off the condo (i.e., the property is paid off), all that you have paid for will be the costs involved in purchasing it, including taxes and insurance.
- Secondly, condos take years to sell: once they are sold, the property won’t be perfectly marketable for another decade or so until someone else comes along to buy it. In other words: even if you suddenly want to buy it at any point in the future, you’d be better off selling it now rather than waiting around for 10 years (read: 10 years from now).
- Thirdly, there are also things which can impact how much can change over time in terms of price: supply and demand; prices of related goods; etc…
- And lastly, there is also time which would have passed regardless of whether or not you had bought the condo and didn’t affect expenses like vacancy rates — this includes things like paying down mortgage interest; rates of interest; etc… (in Singapore) and leaseholds on land (which often change over time).And then there’s an important fourth point: no matter how much more expensive a condo becomes after purchase (and thus likely higher than what you paid for), there will be less variation in prices due to supply & demand factors compared to other factors such as inflation… This means that given what was originally purchased as an investment/property investment and how much has changed with inflation, your original cost may well remain unchanged even after adjustment for inflation.
That’s why I believe many people are misinformed when they say “No matter how much more expensive a condo becomes after purchase [and thus likely higher than what you paid for], there will be less variation in prices due to supply & demand factors compared to other factors such as inflation… This means that given what was originally purchased as an investment/property investment and how much has changed with inflation… your original cost may well remain unchanged even after adjustment for inflation.”
Where does this leave
5. Conclusion: How Much Does A New Condo Cost In Singapore
You could buy a two bedroom apartment for $1 million. Or you could buy a condo that has been on the market since December 27, 2011. If you have an appetite for risk, take the plunge and get in on the ground floor of Singapore’s new condo boom.
This article doesn’t just give an estimate of how much it would cost to buy a new condo in Singapore. It also compares it to existing condos, and shows that the differences between them are very small (if they exist at all).
The author is Benjamin Wong, a blogger at The Real Deal Magazine who has devoted much time to data-driven analysis of local real estate markets, including condo prices and rentals.
A lot of things are unclear about Singapore’s current housing market (and other Asian markets) despite the fact that real estate agents like to promote these markets as being “notorious for price inflation” or “the most expensive in Asia by far” or whatever else they can think up to justify their sales practices. This article from The Real Deal Magazine shows us one way to answer these questions: using data from two sources — one for existing condos, and one for new ones — and comparing them with each other.
If you want to know how much it would cost you actually to purchase a condo in Singapore (that is, if you don’t already own one), this article is a good place to start looking.
