Here’s the salary you need to buy a condo in Singapore’s prime districts, city fringes & suburbs

One way to waste a handsome salary: Buying a home you can barely afford and ending up starved of cash for other goals. Which is why, it pays to be mindful when working out your finances to ensure affordability in the long run when it comes to picking the right property to buy.
To make life easier for aspiring home owners, we’ve done the math to provide the approximate salary that you should be earning in order to afford private property in locations within the prime districts, the city fringes, and suburban areas.
These estimates are primarily based on your ability to service your mortgage payments. We start with looking at the Total Debt Servicing Ratio (TDSR) framework, which dictates that the total loans you need to service in a month should not exceed 60% of your total gross monthly income. This includes all types of loans, including property, car loans, personal loans and even student loans.
We also take into consideration that regulations have capped the maximum loan tenure for private properties at 35 years. However, for loan tenure longer than 30 years, the maximum loan amount could be reduced to 60% of property purchase price.
For the purpose of this article, we will go with the following assumptions:
- Buyer is a Singapore citizen buying property for the first time.
- The buyer pays a 20% down payment, and takes up a 30-year home loan.
- TDSR framework of up to 60% of gross total monthly income.
- The buyer does not have any other loans to service.
Here’s how much an individual buyer will need to be earning in order to purchase a median priced two-bedroom condo in the core central region (CCR), rest of central region (RCR) and outside central region (OCR). For simplicity’s sake, we assume that all two-bedder units we compare are of 900 sq ft.
Market segment
Median price ($)
Loan size assuming borrowing 80% ($)
Estimatedmonthly repayment ($)
Monthly gross income needed to satisfy 60% TDSR requirement ($)
Annual gross income needed to satisfy 60% TDSR requirement ($)
CCR
2.56 mil
2.05 mil
7,366
15,342
184,104
RCR
1.62 mil
1.3 mil
4,661
9,729
116,748
OCR
1.25 mil
1 mil
3,596
7,483
89,796