Is Your Salary Really Enough To Live In Singapore?

Key Takeaways
Living comfortably in Singapore requires careful financial planning. Housing is the biggest expense, with renting and buying costs varying widely. Public transportation is cost-effective, while car ownership is expensive. Daily living costs, including groceries, utilities, and healthcare, add up significantly. Depending on lifestyle, monthly expenses can range from $1,500 for a frugal lifestyle to $15,000 for a luxurious one.

Singapore stands as one of the most developed and vibrant economies in Asia, offering a high quality of life, robust public infrastructure, and a thriving job market.However, the city-state’s allure comes with a price tag – it is frequently ranked among the most expensive cities in the world to live in. This raises an essential question for both locals and expats alike:Is your salary really enough to live comfortably in Singapore?In this guide, let’s delve into the various facets of living in Singapore, from the cost of housing and transportation to daily expenses and leisure activities. Let’s get right in.Table of Contents

Housing – Your Biggest Expense

Understanding Housing Costs in Singapore

When it comes to living in Singapore, housing is invariably the largest single expense in most budgets. The city-state offers a range of accommodation options, from HDB flats (public housing) to private condominiums and landed properties, catering to different lifestyles and budgetary constraints.Let’s understand both scenarios: renting and buying.

Renting in Singapore

For many, especially expats and young professionals, renting is the most feasible option. The cost of renting can vary significantly based on location, type of property, and amenities offered.

HDB Rentals: These are the most budget-friendly options, with rooms in shared apartments starting from around $400 per month all the way up to $1200. Renting a whole unit (3-room flat) can cost between $2,200 and $3000, depending on size and location.
Private Condos: Offering more amenities like swimming pools, gyms, and security services, private condos are pricier. Rents here can start from $2,500 for a studio or one-bedroom unit, whereas a 3-bedroom unit will start at $4,500 and can go up more for luxurious accommodations and central locations.

Buying Property in Singapore

Purchasing property in Singapore is a significant investment, with the market segmented between HDB flats and private residences.

HDB Flats: The cornerstone of Singapore’s housing policy, these flats are more affordable, with three-room units averaging around $390,000. The cost varies based on the number of rooms. 2-bedroom flats can be as low as $300,000, while 3- or 4-bedroom flats can be as high as $550,000.

They are available to Singapore citizens and permanent residents, often with various subsidies and grants, reducing the upfront costs.

Private Properties: These are considerably more expensive, with prices starting from around $1.8 million. Again, this varies based on the size and location.

Overall, Buying private property in Singapore often involves a significant down payment and a long-term financial commitment.

Getting Around – Transportation Costs

Efficiently moving through the bustling city of Singapore requires a good grasp of the various transportation options and their associated costs. Whether you prefer the convenience of private transport or the affordability of public transit, Singapore offers a well-developed transport network to meet your needs.

Public Transportation: A Cost-Effective Choice

Singapore’s Mass Rapid Transit (MRT) and bus services form the backbone of public transportation, offering extensive coverage across the island. For most residents, these services are not just the most economical choice but also a convenient way to commute.

MRT: With stations strategically located near residential areas, business districts, and shopping centres, the MRT is a popular choice for daily commutes. A monthly pass for unlimited travel on buses and trains is priced at $128 (Adult Monthly Travel Card), making it an attractive option for regular commuters.
Buses: Complementing the MRT, buses in Singapore provide access to areas not directly served by the rail network. Using a combination of buses and MRT can significantly reduce transportation expenses compared to owning a car.

The True Cost of Car Ownership

While having a private vehicle offers convenience and flexibility, the costs associated with car ownership in Singapore are among the highest in the world, due to the government’s efforts to manage traffic congestion and encourage public transport use.

Initial Expenses: The purchase price of a new car in Singapore includes the cost of the vehicle, registration fees, and the Certificate of Entitlement (COE), often doubling or tripling the price compared to other countries.
Recurring Costs: On top of monthly loan repayments, car owners must budget for petrol, parking, insurance, and maintenance. These expenses can easily exceed $1,400 per month, making car ownership a significant financial commitment.

For other car-related costs, here is an example to help you understand everything.A Standard Toyota Corolla Altis 1.6 is priced at over $125,000, varying by model. For a brand-new driver, the annual costs associated with car ownership include:

Car insurance: Approximately $1,596
Servicing/maintenance: Around $621
Road tax: $742
Petrol: $2,434

Daily Living Expenses

Managing daily living expenses is essential for anyone aiming to handle their finances effectively in Singapore. From groceries to utility bills, the cost of everyday life can fluctuate significantly based on your lifestyle choices and spending habits.

Groceries: Sustenance for Life

Grocery shopping in Singapore offers a wide range of options, from wet markets offering fresh produce to international supermarkets stocking global brands. The cost of groceries can significantly impact your monthly budget, especially considering Singapore’s reliance on imported goods.Places like NTUC FairPrice and Giant provide a broad selection of local and international products at reasonable prices. A single person can expect to spend about $350-$470 per month on groceries, depending on dietary habits.Families, on the other hand, can expect to pay as high as $1200 and above each month.Looking to manage or enhance your lifestyle in Singapore without compromising your financial health? 1AP Capital is here to support you with tailored loan solutions that meet your unique needs. Whether for housing, transportation, or everyday expenses, our quick and easy application process ensures you have the financial flexibility when you need it. Explore your loan options today and make your Singapore living experience as fulfilling as possible.

Utilities and Services: Keeping the Lights On

Utility bills in Singapore can vary significantly based on usage, especially when it comes to air conditioning, which can be a necessity in Singapore’s tropical climate.

Electricity and Water: The average monthly cost for utilities for a standard apartment can range from $150 to $250, depending on your air conditioning use and water consumption.
Internet and Mobile Services: Staying connected is essential, and Singapore offers various options for broadband and mobile services. A decent internet plan and mobile service can cost around $70-$90 per month.

Healthcare: An Essential Expense

While Singapore boasts one of the best healthcare systems in the world, it is crucial to budget for health-related expenses, including insurance premiums, out-of-pocket costs for medical consultations, and medications.

Insurance: Health insurance is advisable to mitigate the costs of medical treatments and hospitalisation. Premiums depend on coverage levels but budgeting for health insurance is a wise decision for financial planning.

You can expect to pay anywhere between $700 and $1200 per year for yourself and it goes as high as $4500 and above for a family.

Out-of-Pocket Expenses: Even with insurance, there may be copayments and deductibles. Setting aside a budget for unforeseen medical expenses is important for comprehensive financial planning.

Other Expenses

Besides the above, there are certain monthly expenses that you will face anyway.

School: Allocate $500-$700 monthly for local school fees. Private education can cost significantly more, ranging from $1,000 to $3,000 each month.
Domestic Assistance: With nearly one-fifth of Singaporean households employing domestic help, you might find yourself exploring this option. Depending on experience and nationality, budgeting $1,000-$1300 monthly for a domestic helper’s cost is advisable.

Yes. Salary, insurance, travel, and other expenses can add up to that much.

Gym Membership: If you’re into fitness, you might want to set aside $100-$140 for your gym’s monthly fee.
Leisure Activities: Leisure spending varies by interest. Simple pleasures like Netflix and pizza could cost about $20-$30 a month.

For movie enthusiasts or social drinkers, expect to spend $10-$15 per movie ticket or pint of beer. Karaoke lovers should anticipate an additional $30 per person for a night out.All in all, expect to spend about $100-$300 per month on such expenses.These are some of the most basic and unavoidable costs that you will deal with based on your lifestyle and family size.Now, let’s answer the burning question.

How Much Does It Cost To Live In Singapore?

So, you have seen that living in Singapore can vary greatly depending on your lifestyle choices.

Low-end Living Costs

For someone leading a frugal lifestyle, including staying in a single shared room, using local transportation, and keeping grocery and utility bills to a minimum, the costs can be quite manageable.When you add basic healthcare, minimal mobile usage, and occasional dining out, the monthly expense can start at around $1,500.This estimate caters to individuals looking to maximise savings while enjoying the vibrant city life Singapore offers.

High-end Living Costs

On the other end of the spectrum, for those preferring a lavish lifestyle complete with a full 3-room apartment, a vehicle for transportation, schooling for children, comprehensive health insurance for the family, and indulging in all the luxuries that Singapore has to offer, the cost of living can range significantly.Monthly expenses for such a lifestyle can vary from $8,000 to $15,000, reflecting the high quality of life and the myriad opportunities available in this dynamic city.

Planning for the Future

As we’ve explored, the cost of living in Singapore spans a broad spectrum, influenced greatly by individual choices and circumstances. Whether you’re living a modest lifestyle or embracing the higher end of what Singapore has to offer, it’s clear that financial planning and management are key to a comfortable life in this vibrant city-state.Understanding your financial landscape is vital, and occasionally, additional support can significantly impact your overall well-being. At 1AP Capital, we offer personalised loan solutions designed to fit your unique needs and help you achieve your financial goals in Singapore.Whether you’re covering day-to-day expenses or investing in your future, start your journey with us and ensure your financial well-being in Singapore.