How Much to earn to buy house in Singapore May Li Property

How Much Salary Is Needed to Afford a Home in Singapore?

Purchasing a property is one of the most significant financial decisions we make in our lives. The current rise in interest rates has resulted in increased mortgage rates for bank loans, making mortgage payments more expensive and reducing affordability for many buyers. Considering that we have to repay the mortgage over a span of 20 to 30 years, it becomes crucial to ensure that we stay within our financial means.

Now, you might be wondering: How much do I actually need to earn in order to afford my dream home? Before that, it’s important to note that the numbers provided here are estimates and certain assumptions have been made:


  • Downpayment for HDB flats is calculated based on a 20% downpayment (80% LTV)
  • Executive Condominiums (EC) and private properties based on 25% downpayment
  • We’re able to maximize the Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR)
  • A MSR rate of 30% is used
  • For executive condominiums and private properties, a TDSR rate of 55% is applied
  • A 25-year home loan tenure is assumed, with an interest rate of 2.6% for HDB flats and 1.6% for EC flats and private properties to calculate the monthly repayments
  • Both husband and wife are employed and earn the same salary
  • Other costs such as agent fees, stamp duty, legal fees, renovation expenses, and other property-related costs are not taken into account
  • Housing grants available for first-time buyers of HDB flats are not considered
  • The minimum downpayment required for the purchase of the residential property is taken, regardless of the loan eligibility and financial capacity of the borrowers

Salary Needed for Our Dream Home or Property

Housing TypeAverage PriceMinimum DownpaymentEst. Monthly RepaymentAverage Salary Needed (per Spouse)
HDB 3room$389,300$77,860$1,413$2,350
HDB 4room$576,100$115,220$2,091$3,500
HDB 5room$690,400$138,080$2,506$4,200
Executive Condo (EC)$1,335,200$333,800
Condo (Outside Central Region)$1,686,000*$421,500$6,536$5,950
Condo (Rest of Central Region)$2,105,000*$526,250$8,160
Condo (Core Central Region)$2,921,000*$730,250$11,323$10,300
Landed (Terrace)$5,104,000*$1,276,000$19,785$18,000
Landed (Semi-Detached)$6,864,000*$1,716,000$26,608$24,200
Landed (Bungalow)$18,702,000*$4,675,500$72,497$65,900
Landed (Good Class Bungalow)$43,922,000$10,980,500$170,260$154,800
*figures based on URA transactions in year 2022

Affordability is Subjective, differs case to case

The calculations provided above serve as an illustrative representation of the estimated costs associated with various property types in Singapore. These figures can be a useful reference if you’re planning to enter the real estate market or aspiring to upgrade your current property.

However, it’s essential to note that these calculations are based on a significant assumption: maximizing our borrowing capacity. This approach may not be wise when assessing our ability to afford a specific property, particularly considering the current climate of increasing interest rates. What might appear affordable now could potentially become less so when it comes time to refinance our loans.

Also, as of the time of writing, property prices have also risen from the 2022’s prices. Likewise, the figures would have to be updated accordingly as well.

We hope that this has given you some insights into the property prices in Singapore and the rough estimated salaries required to afford the different house type(s) – taking into account the assumptions mentioned earlier. To further understand affordability calculations or what is the ideal property type for your property portfolio, feel free to contact us (May Li Property).

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