In Singapore, most properties are purchased as completed units from developers. Whether it’s a brand new HDB flat, a condominium, or a landed property, the purchase price typically includes the cost of construction. For HDB flats, condominiums, or cluster housing, the price also covers the amenities provided within the development.
As a homeowner in Singapore, you would generally only need to pay directly for the construction of your home if you own a piece of land and decide to build or rebuild a landed property. But how much would this cost you?
Cost Of Building A Landed Property
While the cost of building a landed property can vary significantly depending on your specific requirements, you can generally expect to pay between $300 to $500 per square foot (PSF) for the built-up area. Assuming an average cost of $400PSF, constructing a landed property with a 3,000 square foot built-up area would cost approximately $1.2 million. This estimate excludes the cost of the land, home furnishings and any specific built-in carpentry work.
Here are some other factors that could increase your cost.
Number of Levels: The construction cost will vary depending on the number of levels. For instance, a 3,000 square foot home spread across three levels (1,000 square feet per level) will cost more to build than one spread across two levels (1,500 square feet per level). This is because multi-level construction involves additional structural work and materials.
Adding a Basement: Adding a basement can be particularly expensive due to the additional excavation and reinforcement work required. According to industry sources, constructing a basement can significantly increase the overall cost. It is generally more cost-effective to build upwards, adding more levels to increase the gross floor area, rather than constructing a basement.
Demolition of Existing Structure: If you need to demolish an existing building, costs will vary depending on the current structure and the proximity of neighboring units. Generally, it is advisable to budget between $100,000 to $200,000 for demolition work.
The timeline for building a landed property is typically about 6 months. However, it can extend to a year or more depending on the size of the project, and if it encounters unexpected issues or delays.
Variation order is also another area to look out for. While the initial contract may be within your budget, additional and unexpected work can increase the construction cost of your landed property.
Additions & Alterations (A&A)
To reduce costs, homeowners might consider Additions & Alterations (A&A) instead of a full rebuild.
According to URA guidelines, proposed A&A works should not exceed 50% of the previously approved gross floor area. Additionally, the removal and replacement of external walls should not surpass 50% of the approved external wall. Any changes or replacement to the roof should not involve adding an extra storey. In other words, there are limitations to what you can do for A&A projects.
The overall cost for A&A works is generally lower due to the reduced scope of work. However, keep in mind that A&A projects might face more construction challenges because contractors have to work around the existing structure. This can increase the complexity and potential issues during the project.
Professional Fees
In addition to construction costs, you will need to budget for professional fees for external consultants required for the project. These fees cover services such as architectural design, engineering, and project management.
Overall Budget
For rebuilding a simple landed property of approximately 3,000 square feet, you should set aside a budget of about $1.5 million. This estimate includes construction costs, professional fees, and other related expenses.
Read Also: Price Guide To Landed Properties In Singapore
Top Image: by Jason Goh from Pixabay
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