Buying a Condo in Singapore: The Ultimate Guide
Not every flat in Singapore is outrageously expensive. Apartments in Singapore’s East Region, near Changi Airport, are frequently priced below S$1 million.
Neighborhoods in Singapore
Singapore is one of the world’s smallest nations. But you have plenty of choices when deciding where to buy a condo. The city state boasts a variety of unique neighborhoods, each with their own benefits and drawbacks.
Regardless of where you choose to live, you should always consider your condo’s proximity to public transit. Owning a car in Singapore can be costly and inefficient, thus most residents rely on Singapore’s extensive MRT network to commute.
So, if you wish to live and work in the city, living near an MRT station is a crucial part of getting around… and will also help maintain your property’s value.
Central is the heart of Singapore. Here, you’ll find the city’s central business district along with major tourist areas like Marina Bay and Chinatown. For the purposes of our guide, Central also includes Orchard and its surroundings.
Living in Central is ideal for anyone wanting to be as close to the action as possible. Of course, it comes at a price too. Central is among the costliest areas to buy apartments in the city with real estate values at roughly S$20,000 per square meter.
Another drawback to buying a condo in Central Singapore is that freehold property is difficult to come by.
While foreigners can technically own freehold property in Singapore, many developers do not wish to give up prime real estate in Central. So they choose to sell their condos on a leasehold basis.
You may be able to find some freehold condos closer to Orchard Road, but you should expect to pay a premium for freehold ownership.
East Singapore includes a variety of neighborhoods between Central and Changi Airport, such as Bedok and Tampines, and like Jurong to the west, it is a more industrial area of the city.
Thanks to its lower housing costs and proximity to the airport, East Singapore has attracted a good number of expats. Additionally, since East Singapore is nearby Central, commuting to the central business district is quite easy if you’re near an MRT station.
While housing prices here are much less expensive than in Central, the cost of your condo will depend on where you wish to live. Coastal property prices can rival those of Orchard Road, yet you’ll find relatively affordable condos in “local” areas of East Singapore.
Woodlands and Sembawang are are on the northern tip of Singapore, bordering the Singapore Strait that divides the city from Malaysia.
These neighborhoods are certainly on the outskirts of the city. Nonetheless, they’ve attracted expats and middle class Singaporeans alike due to their relative affordability and abundance of parks and greenery.
Living in Woodlands or Sembawang is best for those looking to escape the hustle and bustle of Central for a suburban environment. As a bonus, real estate costs considerably less than in the city center.
You won’t find anything cheap (at least regional standards) in Singapore. However, you will find greater growth potential here as Singapore’s urbanization continues.
Living in these neighborhoods are appealing both aesthetically and financially. Just remember that you’ll probably deal with a lengthy commute to Central. Living near an MRT station should remain a priority if you move to Woodlands or Sembawang.
Cheapest Condos in Singapore – 13 Small Apartments Under $560,000
“Cheap” and “condo” are two words you hardly ever see together in Singapore, where condominiums are notoriously overhyped and overpriced, especially once you throw some famous architect into the mix.
Turns out, though, that condo units don’t always cost at least $1 million… But only if you’re willing to go for a tiny home; think studios or one-bedroom apartments. If you don’t mind the lack of space, these can cost “only” around $500,000.
Here are the 13 cheapest condo units I found on sale on 99.co.
(Disclaimer: MoneySmart has zero affiliation with 99.co and we don’t get paid anything for pointing you over there. I just find their website easy for property n00bs to use. All photos are grabbed from 99.co listings.)
13 cheapest condos in Singapore under $560,000
|The Hillford||Beauty World||$489,000|
|Treasures @ G20||Aljunied||$530,000|
|The Inflora||Tampines East||$540,000|
|Suites @ Guillemard||Paya Lebar||$550,000|
Look at this adorable tiny apartment at The Hillford with its eclectic bookshelves, daybed, and sunny little reading nook straight out of an IKEA catalogue. Cute, right? And it’s less than $500,000 for the whole unit.
At this price, it’s not surprising that the condo isn’t exactly central. But it’s in a nice location too – walking distance to Bukit Timah Nature Reserve and amenities around Beauty World MRT station.
Price: $489,000 ($1,228.64 psf)
This apartment is not too accessible right now since it’s somewhere in between Yishun and Sembawang MRT stations. But I think it’s worth looking into since it’s very close to the upcoming Canberra MRT station which is slated to open in Dec 2019.
That’s not to say there are no amenities here though. Sembawang Shopping Centre is across the street, while there are some old shophouse eateries just downstairs. Bonus: It’s freehold.
Price: $500,000 ($1,366.12 psf)
It has the same configuration (1 bedroom), but this Parc Rosewood unit is a bit more spacious – it’s 431 sq ft, as opposed to 3XX sq ft for most small units. Despite the larger size, it’s still very attractively priced at $518,000 for the entire unit.
The main issue here is probably accessibility. It’s far up north, in between Woodlands and Marsiling MRT stations (but a long walk from either). That’s not great if you need to commute to the central region. On the flip side, it’s terribly close to the Causeway which makes crossing over to JB a cinch.
Price: $518,000 ($1,201.86 psf)
Okay, I think we can all agree that “Grandeur” is a bit of a hyperbole for a 388 sq ft apartment…
But if you’re looking for something a bit more central than Woodlands and Sembawang, this is an affordably priced condo in a much more convenient location, near Kovan MRT station.
Price: $520,000 ($1,340.21 psf)
The Ebony is one of those micro-condos converted from a bungalow, so it’s surrounded mainly by landed houses in a quiet neighbourhood near Kembangan MRT station.
It’s a bit of a squeeze at 334 sq ft, but that’s often the price you pay for living in the east, which I think is considered a premium location. It’s also freehold.
Price: $530,000 ($1,586.83 psf)
Treasures @ G20
Treasures @ G20 is a small freehold condo in Geylang and it has one-bedroom apartments going for just over $500,000. This one is slightly on the larger side at 420 sq ft.
The photos don’t exactly suggest luxury living, especially the view out of the window. But for young working professionals, that’s probably an acceptable trade-off for a city fringe location with plenty of, uh, nocturnal entertainment options.
Price: $530,000 ($1,261.90 psf)
Another freehold development in Geylang with cheap units is Grandview Suites, which seems a bit more atas than Treasures @ G20. You can’t tell for sure until you view the apartment, though.
Price: $534,888 ($1,378. 58 psf)
If you can look past the awkward name, this little unit at Tampines condo The Inflora seems like quite a bargain. The condo is only a couple of years old, and the unit is on the bigger side at 463 sq ft. Plus, it looks pretty luxe for the price – there’s even a balcony.
The potential downside is the location, which is actually at the Loyang side of Tampines. You’d probably need to drive or find some form of transport because it isn’t walking distance from the MRT station. On the other hand, it’s practically next to Changi Airport.
Price: $550,000 ($1,187.90 psf)
Suites @ Guillemard
Freehold condo Suites @ Guillemard is in an awesome location – it’s walking distance to Paya Lebar MRT station which means you can access both East West and Circle Lines.
The trade off is that this unit is positively TINY – so much so that the photographer had to use a fisheye lens to take photos of the apartment. It’s only 269 sq ft!! I’m pretty sure some luxurious broom closets are bigger than that.
Price: $550,000 ($2,044.61 psf)
Apparently, you can live in a conservation shophouse along East Coast Road for just $550,000. Who would’ve thought? It’s freehold, too. I’m amazed that this Heritage East unit hasn’t been snapped up yet.
Then again, it’s pretty small a studio unit with no separate bedroom (only a small bed nook that’s walled off from the main living / kitchen area).
Price: $550,000 ($1,502.73 psf)
Similar to Heritage East, Prestige Loft is a freehold condo in the Katong area, and its cheapest unit is a studio apartment. It is, however, a traditional gated small condo development, rather than a shophouse which some may find too “open” to intruders.
As you’d expect of a studio apartment, the size of the unit is rather small at 388 sq ft. Unlike Heritage East, there’s no walled-off sleeping area, so you may have to get creative with partitioning the space.
Price: $550,000 ($1,417.53 psf)
I don’t know why this freehold condo is called Airstream, but I’m glad it’s not called Luxury Penthouse or some other ridiculous name. As with the previous two, this is a tiny studio apartment going for $550,000.
The main selling point is its location in Bendemeer, which is about as close as you can get to the CBD at such prices. It’s at the intersection of the PIE and CTE as well, which is convenient but can get noisy.
Price: $550,000 ($1,646.71 psf)
Though it’s a bit more expensive than the $550,000 ceiling I originally set out to impose, I just had to include The Nautical, a huge condominium next to Sembawang Shopping Centre. Yes, it really is ship-themed – Google it.
Among the entrants on this list, The Nautical is the closest you’d get to a full-fledged condo with all the works: Big swimming pool, BBQ pits, tennis court, etc.
For a one-bedroom apartment, it’s also quite spacious at 420 sq ft, which I think is an acceptable trade-off for the far-flung location. Once Canberra MRT station opens at the end of the year, though, it should get a lot more accessible.
Price: $560,000 ($1,333.33 psf)
Are these condos affordable or ridiculous? Tell us what you think in the comments!
Image credits: 99.co listings
Singapore condo properties for sale
Admiralty Primary School
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Alexandra Primary School
Anchor Green Primary School
Anderson Primary School
Ang Mo Kio Primary School
Anglo-chinese School (junior)
Anglo-chinese School (primary)
Angsana Primary School
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Bedok Green Primary School
Bendemeer Primary School
Blangah Rise Primary School
Boon Lay Garden Primary School
Bukit Panjang Primary School
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Canberra Primary School
Canossa Catholic Primary School
Cantonment Primary School
Casuarina Primary School
Catholic High School
Cedar Primary School
Changkat Primary School
Chij (katong) Primary
Chij Our Lady Of Good Counsel
Chij Our Lady Of The Nativity
Chij Our Lady Queen Of Peace
Chij Primary (toa Payoh)
Chij St. Nicholas Girls’ School
Chongzheng Primary School
Chua Chu Kang Primary School
Clementi Primary School
Compassvale Primary School
Concord Primary School
Corporation Primary School
Damai Primary School
Dazhong Primary School
De La Salle School
East Spring Primary School
Edgefield Primary School
Elias Park Primary School
Endeavour Primary School
Eunos Primary School
Evergreen Primary School
Fairfield Methodist School (primary)
Farrer Park Primary School
Fengshan Primary School
Fern Green Primary School
Fernvale Primary School
First Toa Payoh Primary School
Frontier Primary School
Fuchun Primary School
Fuhua Primary School
Gan Eng Seng Primary School
Geylang Methodist School (primary)
Gongshang Primary School
Greendale Primary School
Greenridge Primary School
Greenwood Primary School
Guangyang Primary School
Haig Girls’ School
Henry Park Primary School
Holy Innocents’ Primary School
Hong Wen School
Horizon Primary School
Hougang Primary School
Huamin Primary School
Innova Primary School
Jiemin Primary School
Jing Shan Primary School
Junyuan Primary School
Jurong Primary School
Jurong West Primary School
Juying Primary School
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Kheng Cheng School
Kong Hwa School
Kranji Primary School
Kuo Chuan Presbyterian Primary School
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Lianhua Primary School
Maha Bodhi School
Maris Stella High School
Marsiling Primary School
Marymount Convent School
Mayflower Primary School
Mee Toh School
Meridian Primary School
Methodist Girls’ School (primary)
Montfort Junior School
Nan Chiau Primary School
Nan Hua Primary School
Nanyang Primary School
Naval Base Primary School
New Town Primary School
Ngee Ann Primary School
North Spring Primary School
North View Primary School
North Vista Primary School
Northland Primary School
Northoaks Primary School
Oasis Primary School
Opera Estate Primary School
Palm View Primary School
Park View Primary School
Pasir Ris Primary School
Paya Lebar Methodist Girls’ School (primary)
Pei Chun Public School
Pei Hwa Presbyterian Primary School
Pei Tong Primary School
Peiying Primary School
Pioneer Primary School
Poi Ching School
Princess Elizabeth Primary School
Punggol Cove Primary School
Punggol Green Primary School
Punggol Primary School
Punggol View Primary School
Qifa Primary School
Qihua Primary School
Queenstown Primary School
Radin Mas Primary School
Raffles Girls’ Primary School
Red Swastika School
River Valley Primary School
Riverside Primary School
Rivervale Primary School
Rulang Primary School
Sembawang Primary School
Seng Kang Primary School
Sengkang Green Primary School
Shuqun Primary School
Si Ling Primary School
Singapore Chinese Girls’ Primary School
South View Primary School
Springdale Primary School
St. Andrew’s Junior School
St. Anthony’s Canossian Primary School
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St. Gabriel’s Primary School
St. Hilda’s Primary School
St. Joseph’s Institution Junior
St. Margaret’s Primary School
St. Stephen’s School
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Tampines North Primary School
Tampines Primary School
Tanjong Katong Primary School
Tao Nan School
Teck Ghee Primary School
Teck Whye Primary School
Telok Kurau Primary School
Temasek Primary School
Townsville Primary School
Unity Primary School
Waterway Primary School
Wellington Primary School
West Grove Primary School
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West View Primary School
Westwood Primary School
White Sands Primary School
Woodgrove Primary School
Woodlands Primary School
Woodlands Ring Primary School
Xinghua Primary School
Xingnan Primary School
Xinmin Primary School
Xishan Primary School
Yangzheng Primary School
Yew Tee Primary School
Yio Chu Kang Primary School
Yishun Primary School
Yu Neng Primary School
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Yumin Primary School
Zhangde Primary School
Zhenghua Primary School
Zhonghua Primary School
Admiralty Secondary School
Ahmad Ibrahim Secondary School
Anderson Secondary School
Ang Mo Kio Secondary School
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Anglo-chinese School (independent)
Assumption English School
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Bedok North Secondary School
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Bukit Merah Secondary School
Bukit Panjang Govt. High School
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Chij Katong Convent
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Chij St. Joseph’s Convent
Chij St. Nicholas Girls’ School
Chij St. Theresa’s Convent
Chong Boon Secondary School
Christ Church Secondary School
Chua Chu Kang Secondary School
Chung Cheng High School (main)
Chung Cheng High School (yishun)
Clementi Town Secondary School
Commonwealth Secondary School
Compassvale Secondary School
Crescent Girls’ School
Crest Secondary School
Damai Secondary School
Deyi Secondary School
Dunearn Secondary School
Dunman High School
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East Spring Secondary School
East View Secondary School
Edgefield Secondary School
Evergreen Secondary School
Fairfield Methodist School (secondary)
Fajar Secondary School
Fuchun Secondary School
Fuhua Secondary School
Gan Eng Seng School
Geylang Methodist School (secondary)
Greendale Secondary School
Greenridge Secondary School
Greenview Secondary School
Guangyang Secondary School
Hai Sing Catholic School
Henderson Secondary School
Hillgrove Secondary School
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Hwa Chong Institution
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Juying Secondary School
Kent Ridge Secondary School
Kranji Secondary School
Kuo Chuan Presbyterian Secondary School
Loyang Secondary School
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Manjusri Secondary School
Maris Stella High School
Marsiling Secondary School
Mayflower Secondary School
Meridian Secondary School
Methodist Girls’ School (secondary)
Montfort Secondary School
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Raffles Girls’ School (secondary)
Regent Secondary School
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School Of Science And Technology, Singapore
School Of The Arts, Singapore
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Serangoon Secondary School
Shuqun Secondary School
Si Ling Secondary School
Singapore Chinese Girls’ School
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Teck Whye Secondary School
Temasek Junior College
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Woodlands Secondary School
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Yio Chu Kang Secondary School
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Yuying Secondary School
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Canadian International School (Tanjong Katong Campus)
Chatsworth International School East Campus
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Dover Court Preparatory School
DPS International School
Eton House International School (Broadrick)
Eton House International School (Claymore)
Eton House International School (Mountbatten 223)
Eton House International School (Mountbatten 717)
Eton House International School (Mountbatten 718)
Eton House International School (Newton)
Eton House International School (Outram)
Eton House International School (Sentosa)
Eton House International School (Vanda)
Finnish Supplementatry School (S’pore Land Twr)
GEMS World Academy (Singapore)
German European School Singapore ( Primary School Campus)
German European School Singapore (Main Campus)
German European School Singapore (Primary School Campus)
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Global Indian International School (East Coast Campus)
Global Indian International School (Queenstown Campus)
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ISS International School (Preston Campus)
Italian Supplementary School (Embassy of Italy)
Italian Supplementary School (Italian Embassy)
Japanese Primary School
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Japanese Secondary School
Japanese Supplementary School
Korean Church Kindergarten
Lycee Francais De Singapour (French School of Singapore)
Nanyang Academy of Fine Arts (Campus 1)
Nanyang Academy of Fine Arts (Campus 2)
Nanyang Academy of Fine Arts (Campus 3)
Nanyang Academy of Fine Arts (Campus V)
Nexus International School Singapore
Norwegian Supplementary School
One World International School
Overseas Family School Singapore
Rain Trees International Kindergarten
Sekolah Indonesia Singapura
Shelton College International
Singapore American School
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Sir Manasseh Meyer Internation School
SJI International School
Stamford American International School
Swedish Supplementary Education School
Swedish Supplementary School
Tanglin Trust School
The Japanese Primary School
United World College of South East Asia (Dover Campus)
United World College of South East Asia (East Campus)
Waseda Shibuya Senior High School
Yuvabharathi International School
Want A Freehold Condo In Singapore? You’ll Need To Earn $7,288 A Month
In Singapore, it’s not about whether you can afford a home — but whether you can afford a freehold home.
At least, that’s the dream. Or my dream. How attainable is it really, though?
You might know the cheat: get a BTO, and hopefully sell it after five years to the tune of a tidy profit.
If you’re determined to be purchase a freehold condo in Singapore’s (admittedly saturated) property market, this guide might steer you in the right direction.
Freehold Condos In Singapore
You may know by now that Singapore’s property market is split into three regions:
- Core Central Region (CCR)
- Rest of Central Region (RCR)
- Outside Central Region (OCR)
Properties that sit within the CCR are particularly pricey, given these cover Districts 1, 2, 6, 9, 10 and 11 – plus Sentosa and the Downtown Core.
They’re also typically located closer to the MRT and Singapore’s best schools (perfect for kiasu to-be parents!).
How Much Does A Freehold Condo Cost?
Before getting into how much you’ll actually need to be able to afford it, here’s a quick look at freehold condo property prices around Singapore.
|Name of Property||Area||Price PSF||Price
(as at Dec 2020)
|Bukit 828||Upper Bukit Timah||S$1,585 to S$1,746.25||S$795,000 to S$2.04 million|
|The Midas||Balestier/Geylang||S$960 to S$1,039||S$785,000 to S$1.73 million|
|8M Residences||East Coast||S$2,129 to S$2,226||S$1,100,000 to S$3.5 million|
|Casa Cambio||Serangoon/Thomson||S$1,351 to S$1,500||S$670,000 to S$1.7 million|
|The Petals||Dairy Farm/Bukit Panjang||S$908 to S$1,134||S$975,000 to S$2.7 million|
How Much Do I Need To Afford One?
Let’s assume you’re an employed 30-year-old with no pending loans.
You also live with your parents, and so have minimal bills, apart from the following:
|Pocket money (for parents)||S$500|
|Everyday expenses (food, entertainment, subscriptions)||S$1,000|
You’d like to pay off your freehold condo over 30 years – which is the maximum period allowed to enjoy the full 75% Loan-to-value (LTV) limit.
In the following breakdown, I’ve based my numbers off the assumption that you’re looking to get a two-bedroom condo in the CCR district; specifically, Suites at Bukit Timah.
In order to afford this condo, this is what you’ll need:
Condo location: Bukit Timah (CCR)
Condo cost: Around S$1. 2 million
(5% of total cost)
|Cash or CPF:||$240,000
(20% of total cost)
|Bank Loan||Total Cost:||$900,000
(75% of total cost) over 30 years
|Monthly Repayment:||Around $3,400* (assuming annual interest rates of 2.1% to 2.2%)|
|Maintenance fees||Monthly:||$300 to $1,000|
|Total Needed||Monthly Salary (after CPF):||$5,830|
|Monthly Salary (before CPF):||$7,288 (rounded up)|
Breakdown: $2,130 (expenses) + $3,400 (monthly repayment) + $300 (minimum monthly maintenance fee) = $5,830 (after CPF)
*Monthly repayment calculated using home loan calculators from OCBC and DBS. I then worked out the average monthly cost based on the provided figures.
S$7,288 a month?
Yep, it’s daunting stuff – considering the median monthly salary in Singapore stands at S$4,437 before CPF deductions.
This number is also built on the assumption that:
- You don’t funnel a portion of your salary into investments/loans (you really should!)
- You have sufficient savings to fund the 25% downpayment
- The interest for your bank loan remains at 2.1~2.2% (it’s greatly dependent on the bank’s fluctuating rates after the fifth year mark)
- The cost of your home insurance policy remains the same – which it won’t.
Insurance companies typically charge a higher premium if you upgrade from an HDB to a condo.
And let’s not forget inflation rates, which the Monetary Authority of Singapore (MAS) tracks by way of the Consumer Price Index, or CPI.
In 2018, Singapore’s CPI rose 0.4% year-on-year.
CPI factors in everything from education and housing to healthcare, so it’s safe to say your monthly expenditure will inevitably go up.
Other Factors To Consider
Do You Meet The Total Debt Servicing Ratio (TDSR)?
TDSR essentially enforces a limit on your debt repayments by pegging it to 60% of your monthly income.
Debt repayments include:
- Personal loans
- Car loans
- Outstanding home loans
So if your take-home is S$8,000 monthly (after the CPF deduction) but your loans come up to S$5,600 — that’d already be 70% of your monthly income.
It’s highly likely your application for a freehold condo would be rejected.
Alternatively, you could be asked to place a higher downpayment on your freehold condo.
Loans: Taking A Bank Home Loan
Goodbye, HDB loans and grants.
Unless you’re some kinda Lee Ka-shing, paying off your freehold condo will mean taking a bank loan — which you’ll only get if you’ve a good credit score.
On that, though, bank home loans can only cover 75% of the cost of your property.
That means you’d need to be able to comfortably cover the remaining 25%, further split into the following ratios:
- 5% upfront (in cash)
- 20% (cash or CPF)
Then come bank interest rates, which are really enough to put me off even considering a freehold property.
At present, interest rates for bank loans are around 2% to 2.5% annually.
Rates typically go up significantly after the fourth year, though, so be sure to give yourself leeway in case of revised interest rates from your bank.
If you’ve other property loans outstanding, then tough luck – because your bank will only loan you 50% of the cost of your freehold condo.
TL;DR: You’ll need a good credit score to get a bank loan.
Is Getting A Freehold Condo Really The Best Idea?
While the term ‘freehold’ means ‘estate in perpetuity’ in the most Platonic sense, it really doesn’t mean forever.
At least, not in Singapore.
It’s really dependent on the URA’s masterplans. If plans for an MRT line coincide with your property location, you’ll be reimbursed, at best.
These other factors may put your freehold property at risk, too:
- The possibility of en bloc sales
- Location: A leasehold condo in a superior location (e.g. near Newton MRT) would trump a freehold condo in, say, Boon Lay.
- Additional Buyers Stamp Duty (ABSD): If you’ve purchased your freehold condo but haven’t sold your existing home, you may need to pay ABSD. In some cases, you could apply to have this waived.
When it comes down to it, owning a freehold condo sounds pretty darn cool on paper – and grants you bragging rights, to boot.
But if status is all you’re chasing, then you might want to reconsider investing in one.
How Much Do You Need To Buy A Condo In Singapore – Property Blog Singapore
Let’s face it, if we want to be prudent to the point of necessity, all we need to live is a cave, a fire, and a big club to whack our prey to death. But life is about aspirations; and sometimes, even if you can still qualify for a HDB flat, you want a condo anyway. Well for you big dreamers out there, we at ezbuy.sg have broken down the cost:
How much does a typical condo cost?
Condos in Singapore vary in price, based on which district their in. The priciest districts are 9, 10, and 11, which include Orchard Road, Tanglin, and Sentosa. These condos cost so much money ($6 million or above is not uncommon), we suspect CNB checks your car for smuggled heroin if you so much as step in the showroom.
Most Singaporeans though, when they talk about condos, are referring to mass market condos. These are condos in the Outside of Central Region (OCR), in places like Tampines or Clementi. For the purposes of this example, we will assume you’re looking at one of these more typical condos, which will cost around $1.2 million.
Here’s the breakdown of what you’ll pay:
1. The down payment
Assuming you have no outstanding home loans, you can get a maximum Loan to Value (LTV) ratio of 80 per cent from the bank. That is, the bank can lend you a maximum of 80 per cent of the property value.
(In case it needs to be said, you can’t take a HDB loan for your condo. Due to, you know, the fact that it’s not a HDB property?)
So for our $1.2 million condo, you would be able to borrow a grand total of $960,000, or about the IQ of the average ezbuy employee. Now mind you, this assumes the bank agrees to give you the full 80 per cent; they are not required to do that.
This means there is a remaining payment of 20 per cent, or $240,000.
Another 15 per cent can be paid using your CPF Ordinary Account (CPF OA) funds ($180,000 in this case), and the remaining five per cent has to be paid in cold, hard cash ($60,000).
You may think that’s a lot, but most of the people who managed it have robbed fewer than three banks.
2. The monthly repayment
Okay, here’s where things get complicated. You see in Singapore, banks don’t have perpetual fixed rate loans. That means your mortgage (what you borrowed to buy the house) repayments can go up or down.
I’d love to explain the intricate details of how it moves up and down, but ezbuy threatened to fire me if I sent another customer into a coma. So instead, I’ll simplify.
The typical mortgage interest rate, as I write this, is about 1.8 per cent per annum. I’m going to make it two per cent though, because that will be the most typical rate by the end of 2017. That’s Donald Trump’s fault*.
(*Not a joke. American interest rate hikes cause interest rates to rise in Singapore as well).
I’m going to assume you take a 25 year loan, at two per cent interest. This means, via a formula more complex than calculus and less complex than nasi padang prices, that you will pay around $4,069 per month.
Yes, I know that’s more than some people’s entire salary (median income in Singapore is around $4,000 a month). Now you know just how rich some of your fellow Singaporeans really are. Ask your boss for a raise.
If it makes you feel better though, you can use your CPF OA to make the monthly repayments.
Over a period of 25 years, you would have paid around $1,220,700, for a $960,000 loan. For the record, this is also one of the cheapest loans you will ever get in your life. We bet that really makes your day, huh.
Oh, and that’s not the end of the costs. You see there’s…
3. The monthly maintenance fee
You know how HDB estates have a conservancy charge? Well condos have maintenance fees too, except you may notice condos have fewer residents than an HDB estate. You know what means?
It means the cost of maintenance is shared between fewer people. So now you know why developers bother to list the total number of units. A condo with 400 units will probably have sky high maintenance charges, whereas a condo with 1,500 units will probably have much lower costs.
Also, the bigger the unit you own, the bigger your share of the maintenance fees.
For a typical mass market condo with 1,400 square feet, you can expect a maintenance fee of about $300 a month. That’s an approximation. Fancier condos can cost more, and luxury condos with concierge services can have maintenance fees in excess of $1,000 a month.
Oh wait, we’re not done yet. There’s still the price of…
Unless you sleep on the bare concrete, you’ll have to renovate.
This will cost at least $30,000. We know that because of highly accurate horoscope readings. Or maybe we know because the maximum renovation loan granted by banks is $30,000, or up to six months of your income (whichever is higher), and contractors plan around that. One of those two reasons is true.
Contractors will generally demand 20 per cent upfront, and 20 per cent as each stage of the renovation is completed.
This is where ezbuy can save you a ton of money. If you see furnishings that you like, don’t buy it from a big designer store. Mark-ups for branding and marketing can be as high as 60 to 100 per cent.
Instead, check out ezbuy’s huge furniture selections, and see if you can find a more competitively priced version. And if you use ezbuy Prime, you can have anything shipped over for $2.99, no matter how absurdly bulky or heavy it is. Yes, even if it’s a 200 kilo bed. Only three per cent of our interns leave without hernias.
And after you’ve done all that, and painted the walls (around $1,500 to $2,000 for most four to five room units), you can start working out the…
5. Property tax
Your property tax depends on the Annual Valuation (AV) of your home. The AV is based on how much the government thinks you could rent your property for (even if you don’t rent it). So if your property could be rented out for $3,000 a month, you would have an AV of $36,000.
(At the time of writing, Singapore’s rental market has taken a worse beating than a henchman in a kung-fu movie, so a rental income of $3,000 for a mass market condo really is possible. That’s almost no different from some HDB flats).
The Inland Revenue Authority of Singapore (IRAS) has a tiered system used to calculate the property tax; but for simplicity’s sake, an AV of $36,000 means you’d pay $1,120 a year.
Good luck with getting that condo!
Just remember, what seems impossible and out of reach, can become a reality with slow and constant effort. Your CPF contributions are probably higher than you think, as your employer tops up and additional 16 per cent; and compounded over 10 or 20 years, you can probably afford more than you imagine.
Looking for furniture for your new home? Browse our home & garden section for more inspiration!
This article was first published on ezbuy’s online shopping & lifestyle blog.
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10 Cheapest Condos in Singapore in 2019 – Property Blog Singapore
Time really flies. It has been a year since we posted our 10 cheapest condos in Singapore article and we thought that this would be a good time to revisit and see what has changed in 2019. This year has undoubtedly been the year of new launches in Singapore, and it is interesting to see what new condos have usurped the title for the cheapest condos in Singapore 2019.
As everyone knows, Singapore has a limited land supply and most people (including us) were taken by surprise when the Urban Redevelopment Authority (URA) took a bold step to limit shoebox homes so as to provide a more liveable environment for residents. The number of dwelling units for all new units was previously derived by dividing the Gross Floor Area by 70 sqm will now be revised to 85 sqm. In certain areas like Marine Parade, Joo Chiat-Mountbatten, Telok Kurau-Jalan Eunos, Balestier, Stevens-Chancery, Pasir Panjang, Kovan-How Sun, Shelford and Loyang there are even higher requirements, as this number will be bumped to 100 sqm.
Since this move directly impacts shoebox units, would it have any bearing on the cheapest condos in Singapore in 2019? Here are the top 10!
Top 10 Cheapest Condos in Singapore 2019
1. The Hillford
The Hillford is a condominium located at Jalan Jurong Kechil in District 21. The Hillford is a bit of an anomaly here, not because its a leasehold apartment but because its lease is only limited to 60 years. When it was first launched, it was first pitched as a “retirement resort” and all 281 units of the Hillford actually sold out on its first day of sales. The biggest reason for its popularity was probably because of its low quantum, as the “anti-shoebox rule” was lifted and there were no restrictions on the number of units that could be built. Which is why it is the cheapest condo sold in 2019 on our list at $467,000 for just 398 square feet of space.
2. Le Regal
Le Regal is a small condominium located at Geylang in District 14 with only 88 units. It is one of the four condos on this list that has the coveted freehold status, which is especially interesting to find on a list such as this. Plus it’s in Geylang, so you are closeby to lots of food and if you are after the nightlife, you could not live any nearer. It is also walking distance to Aljunied MRT which is very convenient. The last unit sold was just under $500k at $495,000 at 366 square feet.
3. Prestige Heights
Prestige Heights is the next freehold condominium on this list. It is located in Balestier in District 12 and it has quite a lot of units, coming in at 154. The Balestier area is also close to lots of food, similar to Le Regal. But unfortunately, it is not really walking distance to any MRT station, with the closest being Novena or Toa Payoh MRT station. The last unit sold was an exact $500,000 with a size of 344 square feet, which is the smallest on this list!
4. High Park Residences
High Park Residences is a leasehold condominium located at Sengkang New Town in District 28. It is a massive development with a total of 1,390 units. There is quite a range of units to choose from, starting from the smallest studio up to bungalows and semi-detached units. Another unique thing about this development is that there are 9 commercial units that will include restaurants and even a childcare centre. The last unit sold was at $500,000 at 388 square feet of space.
5. Peoples Park Complex
This development has the distinction of being the third place to appear in our cheapest condos in Singapore list for the second year running! Most people would have probably seen it as it is a very old but distinct building in Chinatown in District 1. Being in Chinatown lends the place to lots of conveniences as it is right next to the MRT and there is lots of food in the area as well. The cheapest unit here was sold at $510,000 at a size of 463 square feet, which is exactly the same as the year before!
6. Parc Rosewood
Parc Rosewood is a leasehold condominium situated at Woodlands in District 25. It has a total of 689 units and is close to Woodlands MRT and the upcoming Woodlands South MRT station on the Thomson East Coast Line. The last unit sold at $510,000 and is one of the bigger units on this list coming in at 431 square feet.
7. Palm Isles
Palm Isles is a leasehold condominium located at Changi in District 17. It has a total of 429 units with the closest MRT station being Tampines East on the Downtown Line. Palm Isles is part of an enclave of condominiums all located at Flora Road and is one of those places that you probably would need to own a car to get around. The last unit sold at $510,000 with the unit having the biggest space on our list with 5076 square feet of space.
8. Eastwood Regency
Eastwood Regency is a freehold condominium located at Bedok in District 16 with a total of 75 units. It is also the development that is closest to an MRT station with the Sungei Bedok MRT station being literally right outside the place. In addition, it is also an interchange with the Thomson East Coast Line and the Downtown Line. The last unit sold at $520,000 with an area of 409 square feet.
9. The Inflora
The Inflora is a leasehold condominium located at Changi in District 17 and has a total of 396 units. It is actually just directly opposite Palm Isles and only separated by Flora Drive. The last unit sold was at $522,000 with an area of 463 square feet.
10. La Fleur
La Fleur is a freehold condominium located at Geylang in District 14 with a total of only 58 units. Being in Geylang, it is in close proximity to lots of food and is also close to both Aljunied and Dakota MRT which means you can access both the East West Line and the Circle Line. The last unit was sold at $530,000 and has an area of 409 square feet.
Apartments for Rent in Singapore
|1 bedroom apartments :||1863|
|2 bedroom apartments :||760|
|3 bedroom apartments :||516|
Apartments, Rooms & Flatshares in Singapore
As an international business hub that’s home to over 7,000 multinational companies, Singapore is one of the fastest-growing economies in the Asia-Pacific region. Combining safety and cleanliness with a modern infrastructure and a high standard of living, it’s also a wonderful place to call home.
If you’re looking for furnished Singapore apartments, you’ve come to the right place. Here at Nestpick, we’ve got something for everybody. Whether you’re an expat with children or a student on a budget, our wide selection of quality flats for rent in Singapore will provide you with the ideal base to enjoy this delightful island city-state.
Apartments for rent in Singapore on a long-term basis come in all shapes and sizes, including studios, high-rise condos and old-fashioned townhouses. Prices can vary substantially, so it’s advisable to make a list of all your requirements before you commence with apartment hunting.
Furnished and Serviced Apartments in Singapore
As a modern, prosperous city-state with a cosmopolitan population, Singapore has its fair share of serviced apartments and condos.
Serviced apartments are fully furnished and available for both short-term and long-term stays, providing all the hotel-like amenities. Many often include facilities such as a gym, swimming pool, car park, security and even tennis courts. Services like WiFi, maid service, laundry, room service are commonly included.
For Singapore serviced apartments on a long-term basis, you’ll be spoilt for choice both in terms of price range and area. Generally speaking, the closer to the city centre and waterfront front you are, the more you’ll have to pay.
Most available condos in Singapore are relatively modern and fitted with a similar number of standard amenities. In the popular expat area of Holland Village, for example, a new condo will set you back around $4,500 per month while a 10 year old unit costs around $3,000.
Student Accommodation in Singapore
Rooms & Flatshares for Rent in Singapore
Singapore is a very expensive city to live in. It is important to remember that although an entire apartment would be ideal, the cost of living, and apartment rents are very high. For those on a lower income, a cheap alternative would be to look for rooms for rent in Singapore. This would allows renters to live in an area of the city that would be extremely expensive for an private apartment.
Rather than an expensive studio or one bedroom apartments, rooms in Singapore are part of a house or apartment shared with other people. It is a great way to move to a new city and make some good social connections whilst saving money. A room share in singapore means cheaper rent, split utilities like electricity, wifi, and new housemates!
Singapore Apartments by District
As with any major city, Singapore is divided into a number of unique neighbourhoods and districts. From the hipster enclave of Holland Village to the sun, sea and sand of Sentosa Island – and everywhere in between – Singapore is full of surprises. Although the city is replete with a broad range of housing options, it can often be quite daunting if you’re unfamiliar its geography and prices. Unsure where to live? With Nestpick, you’ll be able to filter your search to look for furnished accommodation in areas of your choice, at a price and size that suits you.
Apartments in Central Singapore
Apartments in Marina Bay
This luxury district is home to the world-famous Marina Bay Sands hotel – perhaps one of the most famous buildings in Singapore. Given that the area is the most sought-after in Singapore, Marina Bay residences are amongst the priciest in the city. The majority of the apartments here are modern high-rise units, and come equipped with a host of amenities. If you’ve got your heart set on living in this prestigious location, you’ll have to shelve out upwards of $5,000 per month.
Apartments in Bukit Merah
This once-dormant neighbourhood has undergone several recent redevelopment projects that have breathed new life into it. A charming cafe culture has recently emerged, while the neighbourhood’s array of wide open spaces make it great for exploring on foot. Apartments in Bukit Merah are available but in high demand, so you’ll have to act quickly if you wish to live in the area. Because of its proximity to the city centre and Marina Bay, prices tend to be higher here than in more suburban neighbourhoods.
Apartments in Geylang
Geylang is situated on the eastern fringe of the Central Region and is one the city’s liveliest and most energetic districts. With mouthwatering eateries and gorgeous colonial architecture, this atmospheric area on the east coast will bring much joy and colour to your Singaporean soiree. Don’t be put off by the fact that Geylang is the city’s main red light district – the neighbourhood is very safe at night and the bright neon lights can easily be avoided. Geylang apartments come in a range of sizes, styles and prices, and will be sure to please you whatever your needs or budget. The majority of apartments here are renovated, charming old-builds, but it’s possible to find more modern accommodation if you so choose.
Apartments in Little India, Singapore
In recent times, Little India has earnt a very hip and trendy reputation compared to the rest of fairly corporate Singapore. A small microcosm of India, the area is immensely colorful and there is always something going on. From big flavors in the countless restaurants and bistros to trendy nightlife spots in cafes and bars – there is a soul to Little India unlike anywhere else.
Apartments in Clarke Quay
Clarke Quay is a historical district in Singapore, dating back from 1870 where it was the largest British trading post in the city. Since then merchant’s warehouses have been replaced with one of the most active and sleepless areas of the city. There are bars and restaurants to suit every taste and desire as well as one of the largest shopping malls in the city – it can get rather touristy however, so bare that in mind.
Apartments in Southeast Singapore
Apartments in Changi
Changi, most famous for housing Singapore’s fantastic airport, is a throwback to old Singapore. Found a little way out of the city center, there are comparatively few buildings, and most of them are older, more traditional and unlike the towering skyscrapers you see in the city. Living here offers a change of pace, with trees lining the streets and lower rentals – however most of the expats living here are associated with the airport in some manner.
Apartments in Bedok
If you are looking for a more residential neighborhood within Singapore, with outdoor spaces and a little more room to play with, then Bedok ticks all the boxes. As it is getting more and more popular, it is becoming home to some of the trendiest cafés and restaurants in the city. Home also to a large reservoir, this waterhole is packed in the summer months with kayakers and people enjoying the open space.
Apartments in Southwest Singapore
Alexandra / Portsdown
In the Southwest of Singapore you can many colonial style homes, for example, in some neighborhoods like Alexandro and Portsdown, there are many houses and town houses that meet the need for family living. Besides, this part of Singapore comes along with a lot of parks nearby: West Coast Park, Kent Ridge Park and the Southern Ridges, which are perfect for walking and outdoor activities. It’s a straightforward commute to the city centre by car or by plenty of buses.
Apartments in Northwest Singapore
Apartments in Choa Chu Kang
Choa Chu Kang is a one of the most developed area in the west. It is a bit laid back, yet it can meet all of your expectation about a good neighborhood. With Access to shopping malls like mean residents don’t need to worry about going to other areas to get what they need . The nearby Choa Chu Kang Park is a hotspot for nature lovers.
Apartments in Northeast Singapore
Apartments in Punggol / Sengkang
North East Singapore is one of the most populated areas due to the development plans by the goverment. In recent year, more and more Singaporean families moved to this area. Large and convenient residential units offer the residents the best experience of living with the access to supermarket and public transport linkages. Also, Residents can enjoy the best nature in Singapore here.
Singapore Apartment Types and Rental Price in Singapore
Singapore may be one of the crown jewels of Asia, but it does come with the price tag to match. The whole country is built around finance and so it is fitting that renters pay high prices to live and work in this unique city. Prices differ dependent on what you are looking for, with a wide range of apartment options. Condos are the most expensive – but often come with the best amenities. Slightly cheaper but less luxurious are privately owned and rented apartments and for the cheaper options, do as the locals do and find a government controlled HDB apartment.
In 2017 the Singaporean government passed legislation that allowed private landlords to lease out their apartments for a minimum of 3-months at a time, this coming down from the previous 6 months lease rule. While this means that finding a condo or apartment for less than 3 months is difficult, it is not impossible. Serviced apartments can still operate on a very short-term lease, and while this may be a bit pricier, it gives you the peace of mind of not worrying about anything else – just moving in and having all the nitty gritty details of apartment rental sorted out for you.
1 Bedroom Apartments Singapore
While a lot of the apartments in condo blocks cater to families, there is still a lot of choice in the city when it comes to finding a one-bedroom apartment in Singapore. If you prefer the comforts and amenities of condo living, then expect to start paying around the S$4000 mark for a prime location in the marina or around S$3200 a month in Districts 2-4. You can also have a look at Studio Apartments in Singapore.
2-Bedroom Apartments Singapore
While property prices for 2-bedroom apartments in the very central districts can begin at around S$5000 a month, if you are willing to live in another district, still close to the Marina, you can find some fairly priced condos or privately-owned apartments for rent. All coming with the plush amenities that will make life very comfortable in Singapore.
Singapore Apartments with Car Lift
Space in Singapore is at a premium, this going a long way to explain the often-sky-high rental prices. As such there are some ultra-luxurious buildings such as the famous Hamilton Scott Apartments that have thought outside the box and dreamt up a ‘Sky Garage’. Apartments in this building feature an ensuite area of the house with room to park up to two cars side by side. Simply drive into the ground floor lift, enter in your code and watch as your car is whisked into the sky. You can access your apartment via a separate lift and have your car waiting for you when you arrive home.
Apartments in Singapore for Expats
While around 80% of local Singaporeans with in the government maintained HBD apartment’s, the vast majority of expats choose to live in condo blocks throughout the city. The reason is simple, community. Condos come with all the amenities that you could possibly wish for with swimming pools, tennis courts, playgrounds and security all being the norm. There is also the added bonus of having similar families and expats around you, making it all the easier to make friends and become part of a community. Condos often come fully furnished with luxurious and modern trappings as well.
Student Accommodation in Singapore
Singapore’s education system is based on a bilingual policy – taught in English with either Malay, Mandarin or Tamil – and this cosmopolitan approach to learning makes it great place to study as a foreign student. In fact, over 90,000 overseas students (or 18 per cent of the student population) call Singapore home. With such a thriving academic community, student housing Singapore is in constant demand.
Several options are available for student accommodation in Singapore. Most students either live halls of residence, private or hostels or private housing. Sharing a private flat costs roughly around $400 per month. The most expensive option is to live in a flat on your own, which will cost upwards of $1,000 per month. Student housing is spread throughout the city, although most accommodation tends to be handily clustered around Singapore’s various universities and academic institutions.
Public Transportation in Singapore
As you’d expect with such a modern, vibrant city, Singapore has a fantastic public transport infrastructure.
- The Mass Rapid Transit (MRT) railway system is fast, cheap and easy, and takes 30 minutes from the airport to the city centre. It spans the entire city-state, and most neighbourhoods are served by one of its many stations (there are 119 stations in operation).
- Buses are also incredibly cheap, with fares for journeys from the airport to the airport of town costing as little as $2! This makes it the most economical way to get around town – as well as the most scenic.
- To use trains and buses around the city, you’ll have to top up your EZ-Link card. The cards can be purchased in any station, and allow you unlimited travel for one day ($10), two days ($16) or three days ($22).
- If you want to get to somewhere that is difficult to reach by train or bus, then taxis are a quick and comfortable option. Taxis are metered (although surcharged depending on where you’re going or which taxi firm you’re using), and can be hailed down with ease.
Signs across the city are all in English, making it easy to get around for Anglophone expats. All Singapore’s trains and stations are accessible to wheelchair users and the visually impaired. One thing to keep in mind is that Singapore is very firm in enforcing its public etiquette laws. Eating or drinking on public transport is illegal, and will cause you to accrue a hefty fine.
Best Areas to Live in Singapore
- Holland Village (District 10): one of the most popular neighbourhoods for expats. It is located central and with the immediate proximity to Botanical Gardens.
- Tiong Bahru (District 3): the oldest residential area in Singapore, offering housing options in a lower cost. Very popular among young people.
- Marina Bay (District 1): the most wanted areas for living in Singapore. Marina Bay is famous for being a modern and vibrant neighborhood that attracts many residents that pursue high-level living.
- Sentosa (District 4): this Island has some of the most exclusive (and expensive) homes in Singapore. It’s perfect for those we want to live away from the main city.
- East Coast: this areas has the excellent sea-views and offers an exquisite offer of apartments and dining options.
|How much does it cost to rent an apartment in Singapore?|
|The average rental price in Singapore for apartments are in between 554 SGD and 14,634 SGD.|
|How big is a Singapore apartment?|
|Although sizes may vary depending on your selection of bedrooms,Singapore apartment is start from 9m² and could go up to 423m².|
|How to find apartments for rent in Singapore?|
|Singapore’s population count might make things slightly difficult for new comers to find a place when they first move in. We suggest that you use Nestpick’s smart tool to look for your new home, as well as if you are a student reach out to your school’s counsiling to find a rental in Singapore.|
|Is rent cheap in Singapore?|
|The rent in Singapore might change in between 554 SGD and 14,634 SGD. Compare to other big cities in Singapore, rent in Singapore is relatively reasonable.|
|Who can rent apartments in Singapore?|
|Anyone is looking for accommodation can rent an apartment in Singapore as long as they are +18 years old.|
90,000 The Most Honest Guide to the Cost of Living in Singapore – Personal Experience on vc.ru
According to The Economist magazine, Singapore has been at the top of the list of the most expensive countries in the world for five years. In 2019, the “honorable” first place was shared by three cities at once: Singapore, Hong Kong and Paris. How true is this?
In a few months, it will be eight years since I moved to Singapore, and I know the local prices firsthand.
Marina Bay Sands, Infinity Pool
In today’s article, I would like to tell you in detail about the prices of housing, food, transport, clothing, education, medicine and taxation – the main expenses for any family in any country in the world.I already wrote a similar article in 2014 “Cost of Living in Singapore”. Looking through this article today, I was very surprised (after the experience of living in Russia, where prices can change several times a year) that over the past 5 years, the value of all positions without exception not only did not increase, but in some cases even decreased.
So what should you prepare for if you are thinking about moving to Singapore?
Singapore is a tiny country, comparable in size to Monaco, so you shouldn’t be surprised that real estate prices are some of the most expensive in the world.
In addition to the high cost, foreigners are prohibited from purchasing certain types of real estate. Back in 1973, the Singapore government passed the Residential Property Act, which introduced restrictions on the purchase and ownership of private residential property by foreigners. If you are interested in learning more about the cost and procedure for buying a home in Singapore, this topic is disclosed in great detail in my material for the Prian portal.ru “Buying real estate in Singapore”
More than 90% of expats in Singapore live in rented apartments, so today we will talk about renting.
The cost of renting a home in Singapore depends on such factors as the type of housing, area, year of construction, distance from the city center, the quality of furnishings and repairs, as well as additional amenities such as a swimming pool, gym, tennis and squash courts, security, etc.etc.).
Most popular rental housing types:
- Houses with land plots;
- Serviced Apartments;
- Rent a room;
The most affordable type of housing in Singapore is public housing, which is home to over 80% of local residents.This is a standard panel living with a minimum set of amenities. Apartments range from 1 to 5 rooms. There are also improved options such as Multi generation and Executive Flat. The standard sizes of such apartments are from 36 to 130 square meters. The city is planned in such a way that all HDBs are in close proximity to local schools, kindergartens, clinics, shopping centers, police stations and banks, as well as in close proximity to the metro or other forms of public transport.HDB cannot boast of such amenities as pools and gyms, but the cost of their maintenance is lower. HDB rental prices depend on the location and size of the apartment. On average, renting a 3-room HDB apartment near the city costs 3,000 SGD (2,400 USD), while in other suburban areas it ranges from 2,200 to 2,900 SGD (1,700 – 2,300 USD). If your rental budget is limited, then renting an HDB is the smartest option.
About 8% of Singaporeans and over 90% of foreigners in Singapore live in private condominiums.The advantages of condominiums are the individual design of each complex, the larger size of the apartments, the protected area, as well as the presence of such pleasant amenities for life as swimming pools, gyms, tennis and squash courts, playgrounds for children, barbecue areas, etc. Life in a condominium gives a very good level of comfort in life, as well as the ability to communicate with other expats.
Condominium rental prices can vary greatly depending on location and construction date.The average rental price ranges from 3,000 to 10,000 SGD (2,150 -7,200 USD). At the same time, if the lower threshold of 2,150 USD / month is practically fixed, then the upper ceiling can reach 50,000 SGD (36,000 USD) per month for a luxury penthouse.
The cost of renting a 3-room apartment in prestigious areas located in the city center, especially in such prestigious areas as Orchard, Bukit Timah, Tanglin and River Valley, starts from about 5,000 SGD per month (3,600 USD).Rental rates in upmarket areas with sea views like Sentosa and Keppel Bay range from 6,000 – 13,000 SGD (4,300 – 9,300 USD) per month. 2-3-room apartments located in less prestigious areas of the city start at approximately 3,500 SGD (2,500 USD) per month. Apartments located in remote areas from the city (let’s just make a reservation, in remote by Singapore standards), such as Bedok, Changi, Pasir Ris, Tampines, Ang Mo Kio, Yishun, Jurong, and Punggol cost an average of 3,000-4,000 SGD (2,150 – 2,800 USD) per month.
This type of housing includes townhouses, detached cottages and bungalows. Only 5% of the population lives in private houses. Due to the high cost of land, the cost of buying and renting this type of housing is very high. Private house rental prices start at 5,500 SGD (3,900 USD).Average rents for private houses in prime locations start at SGD 10,000 (USD 7,200) per month. A luxurious 4-bedroom mansion with a large plot of land can go up to 50,000 SGD (36,000 USD) per month.
Some expats prefer to rent serviced apartments, i.e.This is because they combine the personalized services and amenities of a hotel with a long-term rental option.
Very attractive for foreigners who do not plan to stay in Singapore for a long time and are looking for flexible rental conditions. The serviced apartments are fully furnished and have all the necessary services and facilities of a high standard hotel. Most often, these are 1-2 bedroom apartments, less often – 3-4 bedrooms.Most serviced apartments are located in the Orchard, River Valley, East and West Coast areas. The monthly rent of serviced apartments can range from 7,000-14,000 SGD (5,000 – 10,000 USD) depending on location and apartment.
If there is no money for renting a separate home or there is no such need, you can consider renting a room.
On average, rent for a room in an HDB / condominium is 800 – 1,800 SGD (570 – 1,300 USD) per month. The cost of renting a room in HDB varies between 500 – 1,000 SGD (360 – 720 USD) per month.
Gas, water and electricity bills on average vary from 150 to 600 SGD per month (108 – 430 USD), depending on the area of your housing, the number of residents and, most importantly, the intensity of the use of the air conditioner (the largest expense item).
Payment for a mobile phone 40-100 SGD (28-72 USD) per month.
Internet payment – 35-50 SGD (25-36 USD) per month.
Food is relatively cheap in Singapore.However, as elsewhere, food costs depend on your needs. Singapore offers a wide variety of dining options ranging from eateries such as food courts and coffee shops to gourmet restaurants, plus no one bothers you to eat at home. The variety of cuisines is also striking – from local flavor (Chinese, Indian, Malay cuisines) to European (Italian, Spanish, French, German, etc.). Speaking about the budget for food, a simple rule applies here – if you plan to eat at home or in local coffee shops or food courts, the cost of food can be quite moderate, if you do not recognize anything other than expensive cafes and restaurants, then the costs for food can be quite comparable to the cost of renting housing.
Cafes and restaurants
Food prices vary greatly from the type of establishment – for example, in a local coffee shop you can eat modestly for 5-7 SGD (3.6-5 USD), while the average bill per person in coffee shops and food courts, along with drinks will be at least 10-12 SGD (7.2 -8.6 USD).Lunch at McDonalds will cost an average of 7 SGD (5.5 USD) per person, and a small cup of coffee at Starbucks will cost the same 6-7 SGD (4.3-5 USD). A snack in a mid-range restaurant will cost you 20 – 40 SGD (14-28 USD) per person. Restaurants in the full sense of the word on average will cost from 90 SGD (64 USD) per person. The choice is yours. Anyway, if you plan to eat out, even if you choose inexpensive food courts and coffee shops, the average bill per month per person is unlikely to be less than 400-800 SGD (290-580 USD) per person.
Do not be fooled by the idea of a lemon-banana Singapore, there is no agriculture or farming here. All meat, dairy products and fruits are imported from nearby countries and primarily from Malaysia, Thailand and Australia.Since most of the food is imported, food prices are not cheap, and yet it is cheaper than eating all the time in cafes and restaurants. If you plan to eat exclusively at home, the average budget for a family of two to three adults and a child for groceries will start at 600 SGD (430 USD) per month.
Like any other major metropolis, there are three main modes of transport in Singapore:
- Public Transport
- Private cars
Due to the compact size of the country and the huge population density, there are 2 interrelated processes in the country:
90 024 90 025 The authorities are trying to make public transport as comfortable and cheap to travel as possible.
90,025 High taxes on private cars are being introduced, transforming cars from a means of transportation into a luxury.
Singapore boasts one of the best, most convenient and least expensive public transport systems in the world.Public transport includes buses and metro (MRT). The minimum fare by bus or metro starts at 0.85 SGD (0.6 USD). The final price of the trip depends on the number of stops / stations. If you plan to use exclusively public transport with the standard home-office-home route, as well as travel on weekends, then you need to budget for transport approximately 150 SGD (108 USD) per person per month. For a working couple, respectively, the cost of public transport per month will be ~ 300 SGD (216 USD).
The taxi system is very developed in Singapore. Since the start of the active development of applications such as GRAB and Go Jek a few years ago, waiting times and taxi costs have been greatly reduced, and the quality of service has increased. Currently, the average waiting time for a car is 3-5 minutes (excluding morning and evening rush hours, Friday evening and public holidays).
Taxi base tax starts at 3.40 SGD (2.4 USD) for standard taxis and 3.90 SGD (2.8 USD) for more upmarket vehicles. The cost of the trip consists of the base tax + 0.22 SGD for every 400 m of the trip + extra charges * + ERP (toll roads) + 10% service charge.
– weekday morning and evening rush hours (from 6:00 am – 9:30 pm): + 25% to the tariff,
– Taxi booking surcharge: + 2.30 – 3.30 SGD (1.6 – 2.3 USD).
night surcharge (from midnight to 6:00 am): + 50% to the base rate,
surcharge for certain places (Central Business District, Marina Bay Sands, Changi Airport, Resorts World Sentosa, etc.): +3 SGD (2.1 USD).
A trip to an average distance (15-25 minutes) will cost an average of 20 SGD (16 USD).
Unlike relatively inexpensive transportation options such as public transport and taxis, owning a private car in Singapore is very expensive due to high government taxes.The government strives to reduce traffic congestion as well as air pollution, so it is taking all possible measures to transfer the majority of residents to public transport. Thinking about buying a car, you need to take into account not only the initial considerable costs of buying a car, but also the daily costs of its further maintenance. One of the most significant expense items when buying a car is the purchase of a COE (Certificate of Entitlement), which gives you the right to own and drive a vehicle for 10 years.
Before you buy a car in Singapore, you must bid on the COE to be within the pre-determined quotas. Quotas for different types of vehicles change every month. Typically, demand for COE exceeds quotas and this imbalance results in high COE prices.
Below is an example of real COE quotas and cost for August 2019:
Quotas and cost for buying cars in Singapore in August 2019
Land Transport Authority of Singapore
Thus, the cost of even a small new low-power car starts at around 130,000 SGD (93,000 USD).Current car prices in Singapore can be viewed on the website: https://www.sgcarmart.com
Also, do not forget about such expenses as compulsory insurance, gasoline, road tax, parking fees, toll roads (ERP) and vehicle maintenance. The cost of a liter of gasoline starts at an average of 2.30 SGD, depending on the grade. Parking a car in the city will cost from 2 SGD (1.4 USD) per hour, while in the city center it can cost 7 SGD (5 USD) per hour or more.
Plus, traveling on toll road sections on the busiest sections of the highway during peak hours will cost you from 1 to 4 SGD (0.7-2.8 USD). As for such inevitable evil as repairs, it all depends on the brand and prestige of the car. On average, the maintenance of a car per month will go from 800 SGD (576 USD) per month for gasoline, parking and toll roads.
However, given the small size of the country, the developed system of public transport and taxis, a car in Singapore is a luxury that can be abandoned without any damage to the quality of life.
To be continued….
ps: If the topic is interesting, in the second part of the article I will talk about the cost of medicine, education, entertainment, clothing, taxation and other inevitable expenses.
So stay connected! 😉
How to rent an apartment – Unique Singapore
The choice of housing is important.After all, a home, even a temporary one, is a place where we relax and recharge after work, spend time with our family, and receive close friends.
What types of housing are there in Singapore?
- HDB – Public housing, which is home to about 80% of Singaporeans. There are always playgrounds and sports grounds near such residential complexes, convenience stores and small markets within walking distance, as well as public transport stops, food courts and, as a rule, a school.Residents charge parking for about S $ 65 per month.
- Condominium (abbreviated as “condo”) is an apartment building from private developers, as opposed to HDB. Such a residential complex is located in a fenced and protected area. Typically, such residential complexes boast free underground / surface parking, a swimming pool (and sometimes more than one), a sauna, a gym, a tennis court and barbecue gazebos.
- Mansion (called “bungalow” in Singapore) is a detached residential building with an adjoining garden, parking space and in some cases even a private pool.
Rent or buy?
There is no definite answer. The good news: a foreigner can own an apartment in Singapore. The news that will surprise no one: it is expensive. First of all, the city-state has expensive land – there is simply very little of it. The cost of an apartment in a good area starts from S $ 700,000, rentals – from S $ 2000 to S $ 15,000 per month. When buying private property, foreigners are required to pay a 20% duty, Additional Buyer’s Stamp Duty (ABSD).It was established by the government of the country in 2009-2012, when it was necessary to contain the continuous rise in prices in the housing market. However, if you are a permanent resident of Singapore (PR status), then you will have to pay only 5% of the fee.
Which area should you choose?
It is important to know the remoteness of the area you like from your work and whether public transport is developed in it. As elsewhere, costs increase with distance from key points in the city. For example, most bungalows are located in the outer parts of the island, in the elite areas Tanglin Hill and Upper Thompson , which by definition makes them more private.A prerequisite for buying or renting a house in such a place is the availability of personal transport. And owning a car in Singapore is a separate story, to which we even dedicated a separate article.
Many foreigners choose condos in the developed areas of the east coast of Singapore: Tanjong Rhu, Marine Parade or Katong . The famous East Coast Park is nearby, where you can ride a bike, roller-skate, have picnics and master new types of water sports.However, be prepared for the fact that apartment prices are much higher here than in places with weaker infrastructure. But the proximity of shops, cinemas, restaurants and transport hubs can justify the cost.
Orchard District is considered a shopping citadel, but there are also residential complexes. Living on Orchard, you will be in the heart of all the city’s events, with the best shops in Singapore and a huge number of restaurants, hotels, cinemas, medical centers and beauty salons just a stone’s throw from your home.Real estate prices are among the highest in the city. If not the most.
On the west coast, the popular area Jurong is surrounded by many restaurants, shops, office buildings, apartment complexes and even hotels. All of this is centered around the Jurong East MRT station. Jurong Gateway is also the second largest shopping area after central Singapore, with large malls such as IMM, JCube (the country’s first Olympic ice rink was built inside it), JEM and Westgate.There is also children’s entertainment in the district – the Science Center, the Omni Theater, where the IMAX technology was tested for the first time in the country, and the Snow City.
Residential complexes on Sentosa are an earthly paradise for a modern person. You will be just 15 minutes from the city center, but at the same time your eye will be delighted by the view of the sea surface, the manicured coastline and the lush vegetation of the island. While living in Sentosa, you will be able to visit one of the most respectable and exclusive golf clubs – Sentosa Golf Club, which is home to the prestigious Barclays Singapore Open.If you are a yacht connoisseur, then your attention will be drawn to the ONE ° 15 Yacht Club, whose members receive many luxurious privileges. Opposite the club is the new Quayside Isle entertainment complex, where you will find many small shops and decent restaurants, which offer mesmerizing views of the marina.
What is important to consider when renting an apartment?
We list the key factors that are important when renting, in addition to the need to conclude a contract, before that, carefully read it:
- Availability of furniture.
If the ad says that the apartment is unfurnished, then most likely you will receive a completely empty space, which contains only a kitchen, fitted wardrobes, air conditioners and water heaters. In the ads where it is indicated that the apartment is partially furnished, in addition to the above, there will be window curtains, lighting fixtures, as well as household appliances: at least a washing machine and a refrigerator. Furnished apartments (fully furnished) add the necessary furnishings for the dining room, living room and bedrooms, including a TV and a microwave oven.
- Number of rooms.
In Singapore, the number of rooms is equal to the number of bedrooms, and the living room is not included in this number. For example, if you see that the ad says “2 bedrooms apartment”, it means that you will have two bedrooms, as well as a living room and a kitchen. If “3 + 1 + 1” is listed, then your apartment will consist of a living room and dining room (usually a common room), three bedrooms, one room for the housekeeper and one storage room.
- Make sure that the contract mentions forced departure.
This clause will allow you to terminate the annuity after 14 months (year of residence + 2 months notice before departure) if you are forced to leave Singapore for one of the reasons stated in the contract. In any other case, termination of the annuity agreement is not allowed.
- Required advance payment.
You will have to make two deposits: the cost of the rent one month in advance according to the preliminary agreement and the cost of the two months rent when the contract is signed.The first amount (the so-called security deposit) will be offset against the rent. The second amount remains with the owner of the apartment until the end of the rental period, and then is returned to the tenant, minus possible costs, for example, the cost of furniture damaged by him. The tenant also pays Stamp Duty.
All costs are mentioned in the contract, so read it carefully before signing. The owner of the apartment is responsible for correcting defects that you find in the first 30 days of your stay, such as a damaged tap, faulty appliances and other possible problems.This moment must be specified in your contract.
- Deposit for utilities.
When you move into a new apartment, you will need to pay a utility deposit to Singapore Power Services (SPS). It is usually included in the first bill and is S $ 300-500 depending on the tenant’s citizenship and the type of housing. Without paying this amount, you will lose electricity and water.
- Agent commission.
If the rental unit costs S $ 3500 per month or more, if the rental period is at least two years, the owner pays the commission to your agent, and otherwise the tenant himself.In the case of a shorter rental period, the landlord pays agent commission only if the rental price is at least S $ 7000 per month. The commission is 50% of the monthly rental value for each year of renting an apartment. If you don’t like the apartment, the commission is not paid.
Singapore Self-Renting Sites
This option is best suited for those who have already decided exactly what kind of apartment they want and in what area. If you contact the landlord’s agent directly, the agent will not have to pay a commission, regardless of the cost of the monthly rent.
Self-catering accommodation in Singapore for short and long term is becoming more and more popular. With HomeAway, you can rent your own home in Singapore without intermediaries. Before booking, you will have the opportunity to communicate with the hosts online and ask them all your questions. You can also read reviews of former tenants about the property and its owner. It is very convenient, profitable and reliable!
On their website, you can filter housing by area – everything is intuitive.In terms of booking, everything is as simple as booking a hotel, you can pay by cards or paypal. They monitor the quality of photographs and descriptions of housing, in case of disagreement, they will always side with the client.
Where to live in Singapore?
Singapore is a densely populated metropolis, so almost all housing here is condominium apartments. The cost of renting an apartment in Singapore usually also includes the use of the infrastructure located on the territory of the condominium.Often the condo has a communal pool, gym, playground and parking.
There are also houses and villas in Singapore, but there are very few low-rise real estate here.
Prices for renting apartments in Singapore
Singapore is one of the most expensive cities in the world, so the cost of living in it is noticeably higher than in other countries of Southeast Asia.
Prices for daily rent of apartments in Singapore start at $ 50. You can find a good small studio in a condominium from about $ 70 per day.The area of such a studio will be very small, so such housing is more suitable for short trips.
From $ 100 you can already rent an apartment in Singapore with 1-2 bedrooms. The spacious apartments are well suited for long stays and families with children.
For 200-300 dollars you can rent housing with 2-3 rooms, designer interior with expensive furniture and appliances, with an excellent view from the window to the sea or the city. The view from the window can greatly affect the price of an apartment in one house.
Singapore has a wide range of luxury housing offers, the price of which can reach over $ 1,000 per day.
Yes, not all universities provide dormitories for their students. But everyone can rent a home in the private sector. Often, even those students who have the opportunity to live in a hostel do this. Agree, living in an apartment gives you more freedom.
There are many options for accommodation in Singapore.
The first one is hostels.
Second – renting an apartment or room.
The third – living in a family (usually a student knows in advance that he will live in a family, or receives information at the university about families who are ready to host a student).
Types of housing are divided into: public, private condominiums, private hostels.
Cost of living
The cost of housing in Singapore depends on various factors.The most important is the proximity to the business center of the city. This is followed by the age of the housing stock, the availability of infrastructure (swimming pool, gym, etc.), the quality and condition of the furniture.
The most profitable thing is to rent an apartment on a joint basis in state houses. It is more expensive to live in condominiums, as the apartments themselves are better and the infrastructure is developed. A 3-bedroom apartment in the main areas of Singapore (Orchard, Bukit Timah, Tanglin and River Valley) can be found for S $ 7,000 per month. It can be more expensive, but why pay a lot?
The same 3-room apartment in the suburbs will cost less – about S $ 4,500.Villas located outside the city center are quite inexpensive (Bedok, Changi, Pasir Ris, Tampines, Ang Mo Kio, Woodlands, Yishun, Clementi, Jurong and Punggol) can be rented at a maximum of S $ 5,000 per month.
There are options for living with the owners. A downtown room costs an average of S $ 1,400 per month. A room in outlying areas averages S $ 700.
A room in a private hostel is the cheapest option. But if you want to live without neighbors, pay S $ 800.You can only save money by sharing a room with three other students. In this case, you will only pay S $ 300 per month.
Remember to budget for food (approximately S $ 300), travel (approximately S $ 150), and other additional costs. (All prices are indicated in Singapore dollars. It makes no sense to indicate them in another currency, because it is easier to avoid misunderstandings in the event of a change in exchange rates).
Cost of Living in Singapore
Student visa to Singapore
Payment is made every month.The amount of the deposit is usually equal to the monthly rent. People who have gone through rental housing in Singapore are advised not to pay for several months in advance, and also to move into the apartment immediately after receiving the keys. It is better to heed the advice so that in one case you do not end up on the street, and in the second, you do not find any other tenants in the apartment.
Before renting an apartment, make sure that the owners have permission to do so.Such permissions are issued by the HDB service. That is, the host must show you a copy of the letter from HDB. Second, be sure to sign an agreement that will indicate the lease terms and obligations of both parties.
The student community recommends that you do not visit the apartment before signing the documents, but also make sure that you are dealing with the rightful owner. It’s easy to check – his name must be indicated on the property documents.
www.nyp.edu.sg – Singapore International Students Community
Forum – Student Housing Forum in Singapore
Easyroommate – on the site you can find the so-called “roommate” (people with whom you can rent a house),
Rentinsingapore – real estate site in Singapore,
Propertyguru is a home search site.
Private student hostels Recommended by the International Student Community in Singapore:
Bshostel, Katonghostel, Milchel, Yoha
90,000 what is it, features and benefits
The term “condominium” is increasingly appearing in the real estate industry.It existed for a long time, but was practically not used. Now it is used when talking, for example, about real estate in Thailand, the USA, and other countries. In Russia, the word was used for a long time, but then it went out of use. There are now other terms for this concept. Let’s talk about this in more detail.
Condominium in Russia – what is it?
The modern concept of the term in Russia is defined by Federal Law No. 72 of June 15, 1996. The law determined that a condominium is a combination of a land plot, buildings, enclosing structures and utilities of an apartment building.This is the decoding that experts adhere to when they use the term today (although they try to avoid it). However, in 2005, certain amendments were made to the legislation, which excluded the concept of “condominium” from the laws altogether. Today, the term HOA is used instead – homeowners’ association.
In simple terms, a condominium is a form of ownership, when one property is owned partly by individuals (apartments), partly in shared ownership (common premises).That is, each apartment owner is also the owner of a part of the entrance, the adjacent territory, the roof, and the parking lot. This forms a special approach to housing maintenance. Each condominium owner tries to invest something in the development of the common area, since it belongs to him personally too.
What functions does the condominium undertake?
As already mentioned, the condominium does not currently exist in Russia. But a homeowners association has very similar functions.It can be organized by any apartment building, if an initiative group lives in it, ready to take on additional work to maintain the building.
If we talk about HOAs as a kind of condominium, then the following functions of the organization can be distinguished:
- Control over resource supplying companies. The task of the HOA is to conclude contracts with suppliers of cold and hot water, electricity, gas, check their work and make claims, if required.
- Home repair and maintenance. The HOA decides which organization you can turn to for overhaul, who will take care of the entrance, etc.
- Arrangement of the adjoining territory and other common areas in accordance with the maintenance standards of an apartment building. For this purpose, an annual plan is formed, which is discussed with all residents. The HOA implements it and reports to the owners.
Self-management of an apartment building is not an easy task.This is actually a business that needs to be done carefully and consistently. But organizing a homeowners association gives many advantages, for example, you will see where utility bills go, solve problems at home as soon as possible, without waiting for the management company to respond to applications for a couple of dozen more buildings in the area.
Condo Hotel – a kind of condominium
In Thailand, Europe and the United States, condos, as condominiums are often shortened, are used as apartment hotels. A classic condo hotel is like a regular hotel complex, often even getting 5 stars.But it belongs not only to the management company, but also to individual individuals. This is done in order to reduce the risks of investments due to the seasonality of the tourism business. Many small investors are more resilient in low season and crisis than one large company.
Investors usually buy shares in a company, but not when it comes to condominium hotels. Here, individual units are put up for sale – studios or apartments from several rooms. Often, the owners buy such housing not just for rent, but also in order to come themselves on vacation for a week or two.True, not all condo hotels allow this. The condo hotel is operated by an operator who receives from 30 to 60% of the profits. With this money, he undertakes to attract customers, service rooms, run a household, and hire people. The responsibility of the owner of the unit becomes the purchase of furniture: every five years, the living space is completely refurbished.
The popularity of condominium hotels is explained by the fact that they not only allow you to invest money with a high profit, but also significantly reduce the risks from investments.This format is considered one of the safest investment options, which is why most wealthy Americans and Europeans use it.
There is another type of condo-hotels, when the property is bought by several owners who organize the reception of tourists on their own. A similar format is more common in resort countries, such as Thailand. Of course, the service does not reach a five-star level, on the contrary, it often becomes an inexpensive option for rental housing. The neighbors are usually a couple of tourists and the owner of the unit himself – the apartment.
As you can see, the definition of a condominium house changes depending on which country you are talking about. But recently, this term has been used when talking about hotels or residential complexes in other countries. Therefore, if you hear that someone is going to buy an apartment in a condominium, most likely, the deal is planned in Thailand, the USA or other countries where this format of housing is popular.
90,000 Generalization of foreign experience in creating condominiums
Reforms in the housing sector, the implementation of which in Russia began in 1989 with the permission of the privatization of housing by citizens, turned a huge number of tenants into real estate owners and led to a change in ownership relations within each house.A few years ago, it was inconceivable that one residential building belonged simultaneously to many owners: individuals, enterprises and organizations. Today, in all of Russia, it is probably impossible to find a house where there would not be at least one private owner – the owner of a privatized apartment. A real estate object owned by several persons, the legislation gives the name “condominium”.
Now in our country, almost all of the city’s multi-apartment housing stock can be considered condominiums.Therefore, the problem of managing apartment buildings that have passed into the ownership of several homeowners, and the legal regulation of relations between co-owners of common property is currently relevant for all cities in Russia.
Experts of the Institute of Urban Economics, in search of solutions to problems related to housing management, have repeatedly turned to foreign experience. In most Western countries, citizens consider the purchase of home ownership as an investment, their main task is to help ensure that the cost of an apartment does not decrease over time, but, if possible, grows.Despite the fact that in Russia many people received apartments for free as a result of privatization, we should learn a useful lesson from the experience of zealous attitude towards their property, historically accumulated in Western countries.
In capital countries, where the private sector has historically dominated the housing sector, various systems of property management are used, including self-government of owners in a condominium. The word “condominium” comes from the Latin language and means “condominium”.This term is almost two thousand years old, and the very idea of a condominium originated during the Roman Empire, when the Senate passed laws allowing citizens to own individual living quarters in urban “multi-family” houses. In the Middle Ages, condominiums existed in Europe, mainly in the German fortress cities, which served as a refuge from the attacks of opponents in internecine wars.
After the Middle Ages, the idea of common property did not emerge until the beginning of the twentieth century. Then condominiums reappeared in Western Europe due to the lack of land in cities.This approach then extended to Latin America and Puerto Rico, where laws were passed in 1951 that created the legal framework for condominiums as part of the housing and finance industry. Puerto Rican law formed the basis of the condominium law passed by the US Congress in 1961.
After that, condominiums as a type of housing complexes, in which there is simultaneously private ownership of apartments and non-residential premises and common shared ownership of common areas, became widespread in many countries of the world.The most significant part of the housing stock condominiums are in the United States and Mexico, they are also common in Western Europe. Since the early nineties, condominiums have appeared in the countries of the former socialist bloc: Poland, Hungary, Slovenia and others, as well as in the CIS countries.
Approaches to the formation of condominiums and the management of common property in Russia and abroad
The legislation of most foreign countries regulating real estate issues is based on the principle that the basis of any real estate object is land.US condominium law begins with the postulate that property boundaries, established along the surface of the earth, extend down to the center of the earth and up to the upper atmosphere. Any structure erected on a land plot is inextricably linked with the land plot. Thus, every homeowner in a condominium in the United States is a co-owner of the land that is part of the condominium.
At the same time, in Russia, where land relations are currently not fully regulated at the federal legislative level, homeowners in condominiums can be more or less firmly confident in their rights to a share of participation only in the common property associated with the building.The Homeowners Associations Act grants local authorities the authority to transfer land to homeowners in condominiums into common shared ownership. However, there are very few cases of such a real transfer; local executive authorities either cite the lack of a transfer mechanism and methodology for determining the boundaries of condominium plots, or are waiting for the adoption of the federal land code.
Another of the fundamental differences between Russian condominiums and condominiums in Western countries, which has developed historically during the privatization of housing, is the ratio of private and municipal property within the same house.
In accordance with Russian legislation, apartments in a condominium, all or some of them, are owned by citizens – individuals, non-residential premises may belong to private companies – legal entities. The rest of the premises, such as non-privatized apartments and unredeemed non-residential stock, are most often the object of municipal property. The municipality, as the owner of the premises in the condominium, enters into a homeowners’ association and becomes the owner of the same rights and obligations as other owners.Representation of the interests of the city in the partnership is carried out by an authorized employee of the administration or other city service.
Similar schemes for the participation of municipalities in the management of condominiums exist in Eastern Europe.
At the same time, in the West, especially in the United States, where historically the overwhelming majority of the housing stock is privately owned, privatization was understood not as a massive free transfer of housing to citizens, as it was in our country, but the sale of housing.At the same time, the houses put up for sale were completely sold out. Thus, in the United States and European countries, residential buildings are either fully owned by one owner, be it a municipality or an individual, or it is a condominium in which there is no municipal property. In the west, it is impossible to see a house where there would be municipal and private apartments at the same time.
Thus, the municipality is not directly interested in any internal affairs of the homeowners associations, and the homeowners in the condominium are not pressured by the city authorities to resolve any issues concerning their condominium.
The relationship between homeowners is governed by the charter of a homeowners association, which is compulsorily created and registered to manage the condominium, and each apartment or non-residential property owner is automatically a member of the association. In addition, virtually every association, in addition to its bylaws, adopts internal rules that define the rights and obligations of homeowners. In the West, litigation is widespread in cases involving homeowners’ associations.Most of these cases relate to arrears on mandatory payments by homeowners or violations of the rules established in the condominium.
At the same time, in none of the Western countries do homeowners ‘associations receive such support from the authorities, both legislative and financial, as homeowners’ associations in Russian cities. In capitalist countries, where historically the market for housing-related services is highly developed, participation in the management of their own urban home is perceived as an advantage by homeowners.It is also natural that the owners of housing in condominiums do not require any financial assistance from the municipalities, since they have always themselves paid the cost of the maintenance and repair of their own housing. Western homeowners simply value the opportunity to efficiently and economically spend their own money invested in the quality and comfort of living.
In our country, with low incomes of the population and the quality of housing services, which does not always meet the needs of even an undemanding consumer, it is necessary to support any initiatives of citizens regarding the improvement of their living conditions.In addition, for the period of time, while subsidies for housing maintenance and utilities for tenants and owners of privatized apartments in the municipal housing stock remain, it is necessary to talk about the preservation of the same subsidies for members of homeowners associations who manage their houses on their own.
The features of the development process of condominiums in various foreign countries are considered below.
United States of America and Western Europe
The bulk of housing in the United States and Western European countries is privately owned.These are single-family houses, of which there are a lot in densely populated cities; apartment buildings in town, usually owned by corporations and private rental companies; condominiums and cooperatives. Public housing in the United States accounts for only about 5% of the country’s total housing stock and is provided only to low-income families.
In the sixties and seventies, condominiums in America were being formed in houses that were previously rented out.Former homeowners sold their entire buildings, apartment by apartment, to tenants and others wishing to get their own home. As a result, the house passed into mixed ownership of many new apartment owners, who simultaneously received ownership of a share in common areas. An association of homeowners is being created to manage the common property in the co-minium.
Since the beginning of the eighties, the “conversion” of existing rental housing into condominiums has begun to decline, and private developers have come to the fore.The construction of condominiums has become an extremely profitable business: housing in such houses has one hundred percent liquidity and brings huge profits to developers. For almost twenty years now, condominiums in the United States have been formed mainly in newly built houses.
Establishment of a tenant self-government organization in a new building – an association of homeowners, is always used by developers and real estate agents as an additional benefit for apartment buyers. Advertising of housing in condominiums is based precisely on the benefits that members of the homeowners’ association receive: the right to vote in all internal issues, the ability to directly participate in the affairs of the association, independent choice of management and operating organizations, the right to influence the quality and cost of services provided by them.
All the provisions regarding the rights and obligations of the homeowner in the condominium are set out in the preliminary sales contract, and each buyer of the apartment immediately recognizes itself as a member of the association.
It should be noted that Americans are a very mobile nation. They are much less attached to their home than our compatriots, easily changing their place of residence if necessary. Therefore, the market for commercial rental housing – apartments and houses – is highly developed in the United States. Despite this, most Americans are looking to buy their own home.It is considered ideal to live in your own separate house or your own apartment, provided that it meets high quality requirements. This allowed condominiums during their existence in the United States to gain immense popularity among the population.
Often, an apartment in a condominium is chosen for living by young families, since working spouses usually prefer urban housing and do not have the opportunity to take care of their home on their own. There are also condominiums where retirees live mostly.However, there are no special patterns in which segments of the population prefer apartments in condominiums: it all depends on the quality of housing, its location and cost. Nevertheless, unlike other types of housing, it is the condominium that Americans consider the personification of quality, comfort, economy and reliability.
In Western European countries, the percentage of the housing stock owned by the state and municipalities is much higher than in the United States. So, in Germany it is almost 35%, in France – about 40%.A large place in the housing sector in Western Europe is also occupied by cooperatives, which are mainly large organizations that own numerous residential buildings. Cooperatives are especially widespread in the Scandinavian countries and in Germany. However, in the last decade, a wave of cooperative “condominization” has swept across Germany. Ownership of an apartment gives the tenant more benefits than just owning a share. By registering a house as a condominium, tenants become the owners of their homes, receive a share in the common property, and their apartments acquire a new, higher value.
In a number of countries, especially in the United States, a type of business based on increasing the value of premises in a condominium has become widespread. A person interested in making a profit, having purchased an apartment in a house intended for conversion into a condominium or in a new house, after a while can sell it at a higher price. This becomes possible after the creation of an association of homeowners and the establishment of a home management system, since the quality of service and the comfort of living in a condominium increase significantly, and this significantly affects the value of real estate.
Countries of Eastern Europe and neighboring countries
In former socialist countries, such as Poland, Czech Republic, Slovenia, Hungary, the housing stock previously belonged to the state, as in our country, and its further privatization proceeded along a path similar to the Russian one. The legislation governing the management of mixed property objects in the countries of Eastern Europe was formed almost simultaneously with the similar legislation in Russia.
Today, in Eastern European countries, condominiums are characterized by problems similar to those experienced by Russian homeowners’ associations: problems of transferring property rights from municipalities to citizens, relatively low incomes of the population and low activity, dependence on a narrow and undeveloped market for management services and housing maintenance.
The USSR Privatization Law, issued in 1989, applied to the housing stock in all the republics of the former Soviet Union, now independent states. Therefore, in almost all countries of our near abroad, there is currently a problem of managing multi-apartment buildings owned by several homeowners.
The search for a solution to this problem is relevant for Belarus, Ukraine, Armenia, Kazakhstan and a number of other republics.However, not all of the named states have found a solution at the legislative level.
The government of the Republic of Belarus went the closest to the Russian way, where at the beginning of 1998 the Law on Joint Home Ownership was issued. The term condominium is not used in it, however, the form of relations between the owners of premises in the building is fully consistent with the concept of a condominium, approved by Russian law. The management of objects of joint home ownership is carried out by the partnership of owners.
A law on the condominium of the Republic of Armenia is currently being prepared. At present, the main legislative act regulating the relations between the owners of the housing stock is the RA Law on the privatization of the state and public housing stock, which provides for the formation of associations of owners. It is assumed that buildings in Armenia, in which 50% of all apartments have been privatized, should go to the condominium form of management. And all those residential buildings in which there is not a single non-privatized apartment must, without fail, become condominiums after a two-year period of free privatization.
In 1996, by the decision of the Government of the Republic of Kazakhstan, the sphere of maintenance and operation of the housing stock was completely transferred to a non-subsidized basis. Thus, each tenant in an apartment building must independently fully pay the cost of maintaining and repairing the house in which he lives. For the purposes of managing the maintenance, operation and maintenance of residential buildings in Kazakhstan, cooperatives of apartment owners (KSK) are being created. In many ways, the goals and areas of activity of KSK coincide with the goals and areas of activity of Russian homeowners’ associations, but the basic principles of their creation are different.Membership in our partnerships today is voluntary, and owners – members of the partnership, owners who are not members of the partnership and residents of non-privatized apartments who are also not members of the partnership can live in the same house. Kazakh KSKs include all residents of the house, that is, in such houses there is one hundred percent privatization.
It can be noted that if in Russia, during the reform of the housing and communal sector, certain support is provided to homeowners’ associations from the authorities, both federal and local, in Kazakhstan, the authorities simply shifted all responsibility for the housing stock onto the shoulders of KSK.
In general, it can be noted that in almost all states that have gone through the difficult process of privatization of state housing stock, self-government organizations in the housing sector are assigned a huge role. They are designed not only to relieve the heavy burden of financial and organizational burden of maintaining housing from the shoulders of the state, municipal authorities and industrial enterprises. Their fundamental task is to contribute to the formation of a competitive market for the management and maintenance of the housing stock through the formation of a competent and influential consumer of housing services.
Opportunities to protect capital invested in condominiums
It has already been said above that in the West, citizens consider buying an apartment or house not only as a solution to their housing problem, but also as an investment. This investment aims to protect the invested capital from inflation and other financial risks, and, if possible, bring profit on future sale.
In the practice of real estate management, the market value of a commercial property, that is, its potential sales value at the current moment or any moment in the future, is determined by the income that the object brings.This is also true for rental housing stock. At the same time, the cost of housing intended for the residence of the owners themselves is determined by other factors.
Usually the cost of an apartment is determined by its area. At the same time, the price of one square meter is determined by the demand for housing of various quality. Demand, in turn, depends on the location and quality as well as the physical condition of the home. Practice shows that the condition of the apartment itself does not always affect its price, since often new owners repair and remodel purchased housing to their liking.
Thus, we can say that the change in the cost of an apartment for the period from purchase to sale depends to the greatest extent on changes in the quality of service and the comfort of living in the house. To protect the investments made by buyers of premises in a home, the value of those premises needs to increase over time. Of course, one must admit that the preservation and growth of capital is fully possible with relative economic stability and a consistently low level of inflation.In addition, investing in real estate becomes truly attractive to citizens only if there is a developed credit system.
Given the unstable economic situation that has emerged in our country, it is a stretch to talk about the effectiveness of Western technologies for investing in the housing sector. At present, rapid inflation, low incomes of the population, and the absence of a well-functioning mechanism for lending to the population for the purchase of housing do not contribute to solving the problem.At the same time, the demand for housing on the part of the population remains huge, the pace of the transition of housing from the state to private owners is growing. Each owner, in accordance with the law, bears the burden of managing his property, which includes an apartment and a share in the common areas of the house. To achieve effective management in such a situation is possible only by combining common efforts.
90,000 Only for insiders: what will be the highest condominium in Russia :: Housing :: RBC Real Estate
June 27, 2019 12:15 pm
The residential complex Neva Towers on the territory of the business center “Moscow City” is being built on the principle of popular in the world formats of cohabitation
Photo: Renaissance Development
The main global trend in the field of residential construction in recent years is the creation of one or more condominium buildings (joint ownership of a real estate complex by several owners), united by a closed common area with infrastructure only for owners.This format of real estate provides owners with privacy, security, a level of comfort and multifunctionality, which most buyers of luxury housing call the key requirements when choosing a home.
The most successful and architecturally significant projects set trends in the local residential real estate markets: One Blackfriars, One Hyde Park in London, One57 and 432 Park Avenue in New York, One Thousand Museum in Miami, The 118 in Dubai.
We will tell you about the peculiarities of life in condominiums and the most striking examples of such housing.
Catch up and overtake America
A rich technological infrastructure today comes to the fore and serves as the main tool for promoting the project on the market. Modern condominiums – both high-rise and low-rise – are a city within a city: in addition to traditional shopping centers, fitness clubs, spas and cinemas, there are often swimming pools, full-fledged beaches, gardens and parks here. The creation of such projects, among other things, solves the problem of the lack of land for new construction and the provision of housing for the growing urban population.In 2018, the world’s first condominium for cars, the Auto House, appeared in Miami. Each “apartment” in it is designed for two parking spaces and is equipped with everything you need: if you wish, you can place a sleeping place, an office and even a bar counter here.
Photo Gallery: Examples of Iconic Condominiums in the World
Residential complex 432 Park Avenue in New York
(Photo: Renaissance Development)
The most widespread condominiums received in the United States: here they are built mainly in resort areas, primarily on the Atlantic coast (California) and the Gulf of Mexico (Florida).Here such real estate is purchased for investment purposes – high rental rates cover the expensive maintenance of condominiums even in the most expensive areas of the country. The main buyers are individuals over 50 years old who, after retirement, move here for permanent residence. In London, New York, Hong Kong, Dubai, condominiums are purchased mainly for their own residence, and buyers are usually successful local and foreign businessmen, bankers, cultural figures, sports and show business.
Star architects design condominiums in the United States, transforming multiple towers into versatile living spaces. One of the most striking examples is the One Thousand Museum exoskeleton-shaped skyscraper designed by Zaha Hadid in Miami. Considered one of the most luxurious on the US East Coast, the complex features spacious sunbathing terraces, a helipad, a sports center, cinema, cigar and billiard rooms and much more.
Today, similar projects appear in Russia: in particular, Moscow developers are actively inviting Western architects who work in partnership with domestic designers. One example of such integration is Neva Towers, a multifunctional complex with premium apartments (developer – Renaissance Development), the first stage of which will be commissioned in 2019. The authors of the concept are the American bureau HOK and the well-known Russian bureau SPEECH under the leadership of Sergei Tchoban.
When developing the project, the architects relied on the world experience of creating such complexes, focusing on privacy and security, which are ensured primarily by the homogeneity of the owners: the main function of the complex is residential, only 26 floors of one of the towers will be occupied by offices. As a result, most buyers purchase apartments in Neva Towers for their own living.
Neva Towers is the first project in Moscow City, whose image resembles classic New York skyscrapers in a modern way.Architect Sergei Tchoban “dressed” the facades in glass in combination with lamellas of light stone, which emphasize the monumentality of the building.
What the Neva Towers complex looks like
Photo: Renaissance Development
Neva Towers will become one of the three tallest buildings in Moscow City after the Federation Tower and the OKO skyscraper.The complex consists of two towers (65 and 79 floors), united by a common four-story stylobate. A private park with an area of 7 thousand square meters will be located on its roof. m with a panoramic pool 25 m long, spa, fitness center, cinema, squash court, virtual golf, music studio and studio for individual lessons – art-room. There is also a shopping gallery inside the stylobate part, and a parking lot for 2040 cars in the underground part.
Due to its location on a separate territory from the Moscow City core, Neva Towers apartments offer panoramic views of the city center, Victory Park, Ostankino Tower and neighboring skyscrapers and Moscow City.All apartments are sold in white box or fully finished, penthouses are in shell & core condition.