Wednesday, 13 May 2015

Can You Afford That Million Dollar Condominium?

Condominiums are expensive and property prices are dropping in Singapore. Are condos still expensive then? Ever since I wrote the post on "How much money do you need to own a condominium in Singapore?" in February last year, there has still been hundreds of views for that single post on a daily basis. People are searching on Google for information regarding condominiums. Some popular keyword searches are "condo price in Singapore" and "money to buy condo".

For some, living in a condominium seems to lift our status in life into the luxurious category as compared to a HDB flat. For others, it seems like a good investment as condo prices rise faster than a HDB flat and there are lesser restrictions or limitations as an investment. Indeed, condominium prices have mostly doubled as compared to 10 years ago. Most have made more than 500K if they had bought their condominium 10 years ago and kept it till now.

Credit: www.atmoslifestyle.com

When we want to buy a condominium whether if its for staying or for investment, there is always the factor of how much we need to pay for it? Let's take a look at the 10 new developments and upcoming developments for condominiums in Singapore. How much do they cost and how much do we need to pay for it?

Prices of 10 New condominiums in Singapore

The following are 10 new condominiums being developed in Singapore as indicated by Property Guru website. I've calculated the estimated down-payment and monthly instalment which we need to pay based on the price given from various online sources.

1. Botanique at Bartley (OCR)

Tenure: 99-year leasehold
Location: Upper Paya Lebar Road (D19)
Nearest MRT station: Marymount
Estimated no. of units: 797

Price per square foot: $1200-$1400 psf
3 Bedroom compact: $1.6 Million (indicative price)

Down-payment (20%): $320K
Monthly instalment (30 years tenure, 2% interest) : $ 4,731
Monthly instalment (30 years tenure, 3% interest) : $ 5,397


2. Kingsford Waterbay (OCR)

Tenure: 99-year leasehold
Location: Upper Serangoon View (D19)
Nearest MRT station: Hougang
Estimated no. of units: 1,165

Price per square foot: $1065 psf
3 Bedroom: $906K

Down-payment (20%): $181,200
Monthly instalment (30 years tenure, 2% interest) : $ 2,679
Monthly instalment (30 years tenure, 3% interest) :  $ 3,056

3. Marine Blue (RCR)

Tenure: Freehold
Location: Marine Parade Road (D15)
Nearest MRT station: Marine Parade (future)
Estimated no. of units: 124


Price per square foot: $1800-$2000 psf
1 Bedroom: $1.2 Million
2 Bedroom: $1.42 Million
3 Bedroom: $2.08 Million

3 Bedroom
Down-payment (20%): $416K
Monthly instalment (30 years tenure, 2% interest) :  $ 6,150
Monthly instalment (30 years tenure, 3% interest) :  $ 7,015


4. North Park Residences (OCR)

Tenure: 99-year leasehold
Location: Yishun Central 1 (D27)
Nearest MRT station: Yishun
Estimated no. of units: 920

Price per square foot: $1369 psf
2 Bedroom: $854K  (Indicative price)

Down-payment (20%): $170,800
Monthly instalment (30 years tenure, 2% interest) : $ 2,525
Monthly instalment (30 years tenure, 3% interest) : $ 2,880


5. Parksuites (CCR)

Tenure: 999-year leasehold
Location: Holland Grove Road (D10)
Nearest MRT station: Holland Village
Estimated no. of units: 119

Price on Application


6. Pollen & Bleu (CCR)

Tenure: 99-year leasehold
Location: Farrer Drive (D10)
Nearest MRT station: Farrer Road
Estimated no. of units: 106

Price per square foot: $1847psf
2 Bedroom: $2.15 Million

Down-payment (20%): $430K
Monthly instalment (30 years tenure, 2% interest) : $ 6,357
Monthly instalment (30 years tenure, 3% interest) : $ 7,252



7. Sims Urban Oasis (RCR)

Tenure: 99-year leasehold
Location: Sims Drive (D14)
Nearest MRT station: Aljunied
Estimated no. of units: 1,024

Price per square foot: $1331 psf
2 Bedroom: $821K
3 Bedroom: $1.28 Million

3 Bedroom
Down-payment (20%): $256K
Monthly instalment (30 years tenure, 2% interest) : $ 3,785
Monthly instalment (30 years tenure, 3% interest) : $ 4,317



8. South Beach Residences (CCR)

Tenure: 99-year leasehold
Location: Beach Road (D7)
Nearest MRT station: Esplanade
Estimated no. of units: 190

Price on Application


9. Symphony Suites (OCR)

Tenure: 99-year leasehold
Location: Yishun Avenue 9 (D27)
Nearest MRT station: Yishun
Estimated no. of units: 660

Price per square foot: $987psf
3 Bedroom: $787K to $886K

Down-payment (20%): $177,200
Monthly instalment (30 years tenure, 2% interest) :  $ 2,620
Monthly instalment (30 years tenure, 3% interest) :  $ 2,988



10. Victoria Park Villas (CCR)

Tenure: 99-year leasehold
Location: Coronation Road (D10)
Nearest MRT station: Tan Kah Kee (future)
Estimated no. of units: 109

Price per square foot: $1600 psf (estimated)
No Price available
Bungalows units for sale


Are Condominiums expensive in Singapore?

From the prices above, it looks like condominium prices can vary quite widely base on location. The most expensive one we see is the property at Farrer park selling at $2.15 Million for just a 2 bedroom apartment. The cheaper ones are those in Yishun and Sims Avenue which is selling at $800K-$900K plus for a 2-3 bedroom apartment. Other than that, all the others are priced at more than a Million dollars.

Credit: www.channelnewsasia.com

As we know, there has been a lot of news about interest rates increasing. I would think that interest rates would increase sooner or later so it is best to be prepared for it. For the above calculations, I've calculated two different monthly instalments base on 2% and 3% respectively. At least we would know how much more we have to pay per month in case interest rates increase by 1%. Our monthly instalment can go up by as much as $1000 per month for a 1 Million plus loan if that happens.

For the loan tenure and limits, some things to take note are:

Maximum loan tenure you can take from the bank is at 35 years now. The maximum loan amount you can take is 80% of the market value of the house. This is only for loan tenure of up to 30 years. If your loan is more than 30 years, you can only borrow 60% of the market value of the house. This is the Loan to value (LTV) ratio.


Another thing to take note of is the Total Debt Servicing Ratio (TDSR). It is at 60% currently. This means you can only use a maximum of 60% of your gross monthly income to pay for all loans. This include all your other loans including car loans, credit card debts, students loans and personal loans etc.

Are condominiums expensive and can you afford it? I hope you can see it for yourself now. Are you still planning to buy one?

*Disclaimer: Prices indicated are estimated only from different online sources. Readers should carry out individual verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found on this post.

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Related Posts:
1. How much money do you need to own a condominium in Singapore?
2. How much money does a couple need to earn in order to afford a $300,000 HDB flat?

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