Larger Living Spaces: The New Demand Surge Post-Pandemic
TLDR We explore the significant impact of digital marketing strategies on business growth in today's competitive landscape. It highlights the...
Read More
TLDR
Building a landed property in Singapore can be a costly endeavor, with prices ranging from $300 to $500 per square foot for a built-up area. For a 3,000 square foot home, expect to spend around $1.2 million on construction alone, excluding land costs. Factors like the number of levels, basement inclusion, and demolition of existing structures can increase expenses. Additions and Alterations (A&A) offer a cost-effective alternative but come with restrictions. Professional fees for architects and engineers should also be budgeted. Overall, plan for a budget of approximately $1.5 million for a basic 3,000 square foot landed property, including construction and professional fees.
For a built-up area of 3,000 square feet, anticipate a budget of at least $1.2 million, not counting the land cost.
In Singapore, most real estate is acquired as finished units from developers. Whether it’s a new HDB flat, a condominium, or a landed property, the purchase price usually encompasses the construction expenses. In the case of HDB flats, condominiums, or cluster homes, the price also includes the amenities offered within the development.
As a homeowner in Singapore, you typically only need to pay for the construction of your home if you own land and choose to build or renovate a landed property. But what would this expense entail?
Cost Of Building A Landed Property
The expense of constructing a landed property can differ greatly based on your particular needs, but you can typically anticipate a price range of $300 to $500 per square foot (PSF) for the built-up area. If we take an average cost of $400 PSF, building a landed property with a built-up area of 3,000 square feet would roughly amount to around $1.2 million. This estimate does not include the price of the land, interior furnishings, or any specialized carpentry work.
Additionally, there are several other factors that may contribute to an increase in your overall costs.
Levels Count: The cost of construction is influenced by the number of levels in a home. For example, a 3,000 square foot residence distributed over three levels (with each level being 1,000 square feet) will incur higher building expenses compared to one that is spread over two levels (1,500 square feet per level). This is due to the fact that multi-level constructions require more structural support and materials.
Incorporating a basement into a structure can be quite costly, primarily because of the extra excavation and reinforcement needed. Industry experts suggest that building a basement can greatly elevate the total expenses. Typically, it is more economical to expand vertically by adding additional floors to enhance the gross floor area, rather than opting for a basement construction.
Dismantling of the Current Structure: Should you require the demolition of an existing building, expenses will fluctuate based on the state of the current structure and its closeness to adjacent properties. As a general guideline, it’s wise to allocate a budget ranging from $100,000 to $200,000 for the demolition process.
The usual timeframe for constructing a landed property is around six months. Nevertheless, this duration can stretch to a year or longer based on the project’s scale and any unforeseen challenges or delays that may arise.
Another aspect to consider is the variation order. Although the original contract might fit your budget, unforeseen additional work can lead to an increase in the construction costs of your property.
Additions & Alterations (A&A)
To save on expenses, homeowners might opt for Additions & Alterations (A&A) rather than undertaking a complete rebuild.
As per URA regulations, any proposed A&A work must not exceed 50% of the previously approved gross floor area. Furthermore, the removal and replacement of external walls cannot exceed 50% of the approved external wall area. Changes or replacements to the roof should not include the addition of an extra storey. Essentially, there are restrictions on what can be done in A&A projects.
Generally, the total cost for A&A works is lower due to the more limited scope of work involved. However, it’s important to consider that A&A projects may encounter greater construction challenges, as contractors will need to navigate around the existing structure. This can lead to increased complexity and potential issues throughout the project.
Professional Fees
Alongside construction expenses, it is essential to allocate funds for the professional fees of external consultants involved in the project. These fees encompass services like architectural design, engineering, and project management.
Overall Budget
To reconstruct a basic landed property roughly measuring 3,000 square feet, it’s advisable to allocate a budget of around $1.5 million. This estimate encompasses construction expenses, professional fees, and various associated costs.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Reach Your Goal of Owning a Flat Before You Turn 35 : Money-Saving Strategies
TLDR Jayson Ang provides valuable insights on money-saving strategies to achieve the goal of owning a flat before turning 35...
Read More
6 Compelling Reasons Why 3-Bedroom Condos Might Shrink Further
TLDR Three-bedroom units in Singapore have significantly downsized from 1,700-1,800 sq. ft. in the 1980s to around 1,000 sq. ft....
Read More
CPF Accrued Interest On Housing: Learn What It Is and How to Calculate It
TLDR Understanding the CPF accrued interest on housing loans is crucial for Singaporean homeowners. When using CPF funds to finance...
Read More
7 Essential Considerations to Keep in Mind When Assessing a Floor Plan for a New Condominium Development
TLDR When selecting a property unit, carefully examine the floor plan beyond aesthetics. Consider non-living spaces like ledges and void...
Read More
Top 5 Emerging Trends in Singapore Real Estate: What Investors Need to Know
The Singapore real estate market has experienced significant growth in recent years, attracting investors from around the world. As the...
Read More
Powering The Lion City: The Top 5 Industries Driving Singapore’s Economy
Powering The Lion City: The Top 5 Industries Driving Singapore's Economy Singapore is widely recognized as one of the most...
Read More
Avoid The Possibility Of Negative Cash Sales: Find Out How Much Your HDB Has To Appreciate To Steer Clear Of It!
TLDR When selling your property, watch out for negative cash sales that could leave you with no money after CPF...
Read More
Want To Buy A Property? Read Me First!
TLDR Understanding the key factors involved in buying property in Singapore is crucial for making informed decisions. Consider your investment...
Read More
Top 5 Rooftop Bars in Singapore with Amazing Views
Top 5 Rooftop Bars in Singapore with Amazing Views Singapore, the Lion City, is known for its stunning skyline and...
Read More
3 Steps to Protect Yourself from Real Estate Scams in Singapore
Lately, there has been an increase in scams related to real estate. Scammers are pretending to be real estate agents...
Read More
Discover 7 New Condos Close to an MRT Station in 2023
TLDR When it comes to finding the perfect home near MRT stations in Singapore, several exciting new launches stand out...
Read More
What’s The Difference Between An Offer To Purchase And An Option To Purchase?
TLDR Understanding the crucial difference between an Offer to Purchase and an Option to Purchase (OTP) is vital when buying...
Read More
The Secret Strategies of Singapore’s Property Tycoons: Lessons You Can Learn
The Singapore property market has always been a hot topic for both locals and foreign investors. With its stable economy,...
Read More
Why Can’t More People Own Private Property?
TLDR The blog post discusses the aspirations of individuals like Siti and Mr. Tan regarding property ownership in Singapore. Siti...
Read More
Singapore’s Luxury Real Estate Market: The 5 Most Luxurious Neighborhoods
The 5 most expensive neighborhoods in the city, and are home to some of the most exclusive and opulent properties...
Read More
Sell High Buy High : Will This Still Make You a Profit?
TL;DR Summary: Timing of Property Sale: Selling high and buying high may seem counterintuitive, but understanding market dynamics can...
Read More
Discover the 7 Unique Attributes of Real Estate Investing
TLDR The post highlights the benefits of investing in real estate, such as high leverage, capital appreciation, income generation, usability,...
Read More
Top 5 Things to Do in Singapore on a Rainy Day
Singapore, the beautiful island city-state, is known for its sunny weather and stunning attractions. However, even in this tropical paradise,...
Read More
7 Essential Steps to Sell Your House in Singapore
TLDR When preparing to sell your house, research the average prices in your area for a realistic figure. Consider factors...
Read More
