Is it possible to buy a house in Singapore if you earn $1,000 a month?

Singapore properties are known to be a little too pricey and this is of great concern to the younger generation as well as low-income individuals.

Back in 2012, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam mentioned that it was highly possible for Singaporeans below the age of 35 to afford their own HDB apartment. Minister Khaw Boon Wan also supported Minister Shanmugaratnam’s claim by explaining the math behind it.

It has been four years since and several policies have changed for sure, but let us break down the math and see if it is still possible for Singaporeans to buy a house in Singapore with a $1,000 monthly salary.

Since November 2015

Most affordable BTO Flat in Singapore: 2-room Flexi

Cost price of 2-room Flexi (before grants): from $80,000

Maximum amount of grant available: $80,000 (additional housing grant AHG and special housing grant SHG)

Cost price of 2-room Flexi (after grants): from $4,000

CPF Financing Mortgage

With $1,000 monthly income, $200 goes to CPF.

Employer contributes another $170.

Total monthly CPF contribution: $370  (way more than enough for the monthly mortgage required)

Final Verdict:

With so many grants available, one can finance an HDB 2-room Flexi apartment with a $370 monthly CPF contribution from a $1,000 monthly salary.

Younger applicants may even afford to service loans for 2-room Flexi with a higher purchase price of around $100,000 as they will be able to qualify for a longer loan tenure up to 30-years. 

So yes, as a Singaporean, you can definitely buy an HDB flat in Singapore with a $1,000 monthly salary! But definitely NOT a new condo in Singapore, though.

Read More: Singapore property blog