A few years ago, you had just graduated, full of spirit and vitality. You landed your dream job, which allowed you to comfortably pay off your loans and support yourself. At the same time, you were in a stable and sweet relationship, ready to walk down the aisle. Life was smooth sailing, and everything was great, until your partner suggested taking the relationship to the next level—buying your first home together and having a place of your own.
Leaving the family nest is not a simple process; in fact, for most Singaporeans, it is a deliberate rite of passage into adulthood. While it is a path familiar to many, the journey can be daunting for most novices. Here is a quick primer on your home-buying options. Happy adulting!
Know Your Options and Understand Them
There are several different types of properties in Singapore, and it is crucial to know what options are available and the eligibility criteria for buyers. More importantly, it is essential to understand the price points for each property type.
HDB Public Housing
For most first-time homebuyers, the most affordable housing type is the public housing flat provided by the Housing & Development Board (HDB). HDB flats come with substantial subsidies, aimed at ensuring every Singaporean has a place to call home. These flats are available across the country, located in various HDB towns and estates.
HDB flats can be categorized into those in mature estates and non-mature estates. Mature estates are primarily located in older towns with well-established amenities and transport networks, such as Bukit Merah, Bishan, and Pasir Ris. Non-mature estates are typically in relatively newer towns that may not be as developed, such as Punggol, Yishun, Bukit Panjang, and Jurong West. Prices for flats in mature estates also tend to be higher than those in non-mature estates.
Eligible buyers can purchase HDB flats through two main channels: the HDB’s Build-To-Order (BTO) system or the HDB resale market. The most critical difference between the two is the timeline and price. Resale HDB flats are ready for immediate occupancy and are usually more expensive than BTO units, as their prices reflect their value on the open market. However, first-time buyers can enjoy housing grants of up to S$160,000—depending on household income—which can help finance the purchase of a resale flat to some extent.
Meanwhile, BTO units, with their government subsidies, are often more affordable but may take 3 to 5 years to be built, or even longer if there are construction delays. Typically, owners must live in the flat for a minimum of 5 years (known as the Minimum Occupation Period, or MOP) before they can resell or rent out the entire unit. Note that BTO units under the Prime Location Public Housing (PLH) model have a longer MOP and other restrictions.
Table 1: Median Resale Prices of HDB Flats in Selected Towns for Q1 2022
| Town | 3-Room | 4-Room | 5-Room |
| Mature Estates | |||
| Clementi | $380,000 | $703,000 | $818,000 |
| Toa Payoh | $320,000 | $622,500 | $875,000 |
| Queenstown | $360,000 | $820,000 | $952,000 |
| Serangoon | $366,500 | $492,500 | $658,000 |
| Non-Mature Estates | |||
| Jurong West | $330,000 | $440,000 | $538,900 |
| Sengkang | $406,000 | $510,000 | $560,000 |
| Woodlands | $341,500 | $450,000 | $530,000 |
| Yishun | $360,000 | $450,000 | $582,500 |
Source: AnjiaSG Research, URA Realis
Based on median transaction prices as of Q1 2022 (see Table 1), a four-room resale flat in a mature estate would cost over S$500,000, while a similar unit in a non-mature estate would be between S$400,000 and S$500,000.
If there is no urgent need to move in, some couples prefer to opt for a BTO flat. Applicants can apply for subsidized flats during the quarterly BTO sales exercises, which typically offer four to six projects in different HDB estates each time. After applying, they enter a ballot, and successful buyers can then select their desired unit from the chosen project.
In recent years, BTO flats have become extremely popular among young, first-time homebuyers, with some projects being oversubscribed by more than 10 times. Due to the high demand, it is not uncommon for applicants to apply multiple times before successfully securing a unit.
Checklist: BTO or Resale HDB?
| Build-To-Order (BTO) | Resale HDB |
| No urgent need for a home | Need to move in as soon as possible |
| Willing to accept potential completion delays | Want more choices across all property types in Singapore |
| Limited housing budget | Higher price than BTO flats |
| Up to S$80,000 in housing grants for eligible buyers | Up to S$160,000 in housing grants for eligible buyers |
| Unit size may be more compact than older resale flats | Unit size may be more spacious than new flats |
| Fresh 99-year lease | Older flat with a shorter remaining lease |
Source: AnjiaSG Research
Related Articles:
- Prices of New HDB Flats in 2022
- Owners of Prime Location Flats to Face Longer MOP and Subsidy Recovery Rules
Executive Condominiums (ECs)
For potential homebuyers who exceed the income ceiling for HDB flats, you can consider an Executive Condominium (EC)—a hybrid between public and private housing. Similar to public housing, buyers need to meet a set of eligibility criteria, namely nationality, family nucleus, and an income ceiling (which stands at a gross monthly household income of no more than S$16,000 at the time of writing).
Most EC projects are located in areas outside the city center and in non-mature estates, such as Sembawang, Yishun, Tampines, and Sengkang. As of Q1 2022, the median price for a new EC was over S$1.3 million, slightly lower than the price of new private condominiums in suburban areas.
Table 2: Median Transaction Prices for Executive Condominiums (New and Resale)
| Median Transaction Price | 2018 | 2019 | 2020 | 2021 | Q1 2022 |
| New ECs in OCR | $957,000 | $1,111,400 | $1,074,000 | $1,227,000 | $1,313,000 |
| Sembawang | $903,350 | – | $1,066,000 | $1,121,000 | $1,161,500 |
| Sengkang | $1,038,800 | $1,093,450 | $1,216,000 | $1,259,000 | $1,283,000 |
| Tampines | – | – | – | $1,238,500 | $1,455,000 |
Source: AnjiaSG Research, URA Realis
Buyers must adhere to the same Minimum Occupation Period (MOP) rules as HDB flats, and are only allowed to sell the property five years after its completion. A key feature that distinguishes ECs from public housing is that the project becomes fully privatized 10 years after completion, which means owners are allowed to sell their homes to foreigners.
Private Residential Property
If you and your partner have an above-average income, or if your budget allows, you have countless options in the private residential market—new launches, resale condominiums, or even landed properties. Prices can vary significantly depending on the location and property type.
The most common type of private residential property is the condominium, where residents have exclusive access to facilities such as gyms, swimming pools, and tennis courts. Buyers can purchase a unit directly from a developer off-plan—where the unit is bought during the project’s sales launch while it is still under construction, with a move-in date 2 to 4 years later upon completion. Another option is to buy a unit from the resale market, where buyers can move in as early as 6 months after the sale and purchase agreement is signed.
The private residential market is divided into three geographical regions: the Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR).
Residences in the CCR are located near the city center and are considered the epitome of luxury housing in Singapore. Many homes in the CCR are also closer to urban lifestyle destinations like Orchard Road, the Central Business District, and some prestigious schools. In 2022, the average price of a new condominium in the CCR was S$2.3 million. For those with a more modest budget, the RCR and OCR offer more affordable options, albeit further from the city center.
There are no restrictions on purchasing private residential property, especially for first-time Singaporean homebuyers. However, foreign buyers must pay a 30% Additional Buyer’s Stamp Duty (ABSD) on their first property purchase, while Singapore Permanent Residents (PRs) are subject to a 5% ABSD. Additionally, foreigners are generally not permitted to buy landed properties on mainland Singapore unless they receive approval from the authorities.
Related Articles:
Table 3: Median Transaction Prices for New and Resale Private Non-Landed Properties by Region
| Median Transaction Price | 2018 | 2019 | 2020 | 2021 | Q1 2022 |
| New Private Non-Landed CCR | $2,501,630 | $2,080,600 | $1,600,000 | $1,821,000 | $2,321,460 |
| New Private Non-Landed RCR | $1,312,000 | $1,337,000 | $1,388,000 | $1,584,000 | $1,972,500 |
| New Private Non-Landed OCR | $1,017,900 | $1,053,000 | $1,211,000 | $1,377,000 | $1,722,300 |
| Resale Private Non-Landed CCR | $2,300,000 | $2,369,000 | $2,240,000 | $2,350,000 | $2,455,000 |
| Resale Private Non-Landed RCR | $1,438,000 | $1,500,000 | $1,410,000 | $1,470,000 | $1,530,000 |
| Resale Private Non-Landed OCR | $1,100,000 | $1,138,000 | $1,100,000 | $1,130,000 | $1,180,000 |
Source: AnjiaSG Research, URA Realis
Buyers considering a private condominium should be prepared to pay monthly maintenance fees, which can be quite substantial for some developments. The maintenance fee is typically based on the share value of your unit, which is determined by its size. In other words, the larger your home, the higher the maintenance fees.
Related Articles:
Financial Planning
Before you start browsing listings in search of your dream home, it is essential to plan and establish your home-buying budget. Knowing what you can afford will help set expectations and narrow down your search.
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