Singaporean Matters: Living within your means

Why Young Singaporean Couples Should Avoid Overextending on Condo Purchases

Buying a home is one of the most significant financial decisions you’ll make in your lifetime. For young Singaporean couples, the allure of owning a private condominium is strong, but it’s crucial to approach this decision with caution. While the idea of living in a swanky condo with amenities like swimming pools and gyms is appealing, overextending financially can lead to long-term stress and financial instability.

The Reality of Private Property Prices

Private property prices in Singapore have been on a steady rise. As of 2024, the average price per square foot (psf) for a condominium in the Core Central Region is around $2,500 to $3,000. In the Rest of Central Region, prices are slightly lower but still significant, ranging from $1,800 to $2,200 psf​​. A typical 1,000 square foot condo, translates to a purchase price of $1.8 million to $3 million, not including additional costs such as stamp duties, legal fees, and maintenance fees.

The Risks of Overextending

With higher property prices come higher mortgage payments. For instance, a $1.5 million loan for a 30-year tenure at a 2.85% interest rate…