Buying a home in Singapore is a significant milestone, whether you’re a first-time buyer or looking to upgrade or downgrade your property. With close to 89.7% home ownership in Singapore, the city is known for its efficient housing system and high real estate prices, Singapore's property market requires careful financial planning.

Beyond the property’s purchase price, there are numerous hidden and recurring costs that buyers need to account for. In this guide, we’ll break down all the costs of purchasing a home in Singapore, ensuring you’re well-prepared for this journey.


1. Understanding the property types in Singapore

Before diving into the costs, it’s essential to know the types of housing available:

HDB flats: Government-subsidised housing, more affordable but with ownership restrictions such as the Ethnic Quota, a longer waiting period, and a limit of 99-year lease. Prices range from $300,000 to $1 million depending on size, location, and whether it's a BTO (Build-To-Order) or resale flat.

BTO flats are heavily subsidised and sold at a lower-than-market rate - you may refer to HDB’s website for new BTO launches. Unlike BTO flats, resale flats are ready for immediate occupation and prices can depend on remaining lease duration, location, and condition of the unit.

Executive condominiums (ECs): Hybrid public-private housing, priced between $700,000 and $2 million that offer condominium-style facilities like swimming pools and gyms. ECs are initially sold with subsidies and ownership restrictions similar to HDB flats, but become fully privatised after 10 years, opening it up to sale towards foreigners.

Private condominiums: These are fully private residential properties with a wide range of amenities. Offer more privacy and amenities, with prices starting from $1 million and can go upwards depending on location, leasehold, and amenities. It is important to remember that these properties come with a higher maintenance fee than HDB town council fees.

Private landed properties: Exclusive and luxurious, ranging from $2 million to tens of millions for Good Class Bungalows (GCBs). In Singapore’s land-scarce environment, landed properties account for 5-6% of all residential properties in Singapore.


2. Down payment requirements

The initial cost of buying a home involves a down payment, which varies depending on your financing method:

  • HDB Loan: Minimum 10% of the purchase price (fully payable using CPF Ordinary Account funds).

  • Bank Loan: Minimum 25% of the purchase price, with at least 5%-10% paid in cash and the rest from CPF or savings.

For example: $600,000 HDB flat with a bank loan, $150,000 (25% down payment) is needed. Of this, at least $30,000 (5%) must be paid in cash.


3. Mortgage financing and interest costs

Mortgage loans in Singapore have interest rates that typically range from 2% to 4%. Using a bank loan, the interest you pay depends on the loan amount, tenure, and type of rate (fixed or floating).

For example, a loan of $1 million over 25 years at 3% interest incurs over $400,000 in interest payments.


Stamp duty and legal fees are unavoidable costs when purchasing property in Singapore. The Buyer’s Stamp Duty (BSD) and, for some buyers, the Additional Buyer’s Stamp Duty (ABSD), make up a significant portion of the total expense. Alongside these stamp duties, it’s also important to factor in legal fees for conveyancing services, which ensure the smooth transfer of ownership and compliance with legal requirements.

Here’s a breakdown of these costs and how they can impact your property purchase budget.

Buyer’s Stamp Duty (BSD)

  • First $180,000: 1%.

  • Next $180,000: 2%.

  • Next $640,000: 3%.

  • Amounts exceeding $1 million: 4%.

For example, for a $1.5 million condo:

  • BSD = $44,600.

Additional Buyer’s Stamp Duty (ABSD)

Applicable if you’re buying a second or subsequent property:

  • Singapore Citizens (2nd property): 17% of purchase price.

  • Permanent Residents (1st property): 5%.

  • Legal and conveyancing fees typically range from $2,500 to $5,000.


5. Other costs to consider

Renovation and furnishing

Renovation costs for HDB flats typically range from $30,000 to $70,000, depending on the scale of work and finishes chosen. Additionally, furnishing your home with essential furniture and appliances can cost another $10,000 to $50,000, based on your preferences and lifestyle.

Maintenance fees

  • HDB Service & Conservancy Charges: These monthly charges range between $50 to $90, depending on the flat type and location.

  • Condominium Maintenance Fees: Private condominium owners pay significantly higher monthly maintenance fees, ranging from $300 to $1,000, depending on the property’s size, location, and amenities.

Property taxes

Property tax is calculated based on the Annual Value (AV) of your property, which is the estimated rental income if it were rented out.

  • Owner-occupied homes: Tax rates range from 0% to 16% of the AV.

  • Non-owner-occupied homes: Tax rates are higher, ranging from 12% to 20% of the AV.

For instance, if a condominium has an AV of $30,000, the annual property tax for an owner-occupier would be:

  • $2,400 per year.


6. Maximising CPF for property purchase

Your CPF Ordinary Account (OA) is a critical resource for financing your home. Here’s how you can maximise its benefits:

  • Down payment and mortgage payments: CPF OA funds can be used to cover the down payment, monthly mortgage installments, and even stamp duties, reducing the need for large cash outlays.

  • Basic Retirement Sum: Ensure that you retain enough funds in your CPF OA, which stands at $99,400 as of 2024. This ensures financial security for your retirement while managing your property purchase.

  • CPF Housing Usage Calculator: Use the CPF Housing Usage Calculator available on the CPF Website to determine how much of your CPF savings can be allocated for your home purchase effectively.

Below is a breakdown of the estimated costs for a $1.5 million property specifically for Singapore Citizens:

Cost item

Estimated amount (SGD)

Property price

1,500,000

Buyer’s Stamp Duty (BSD)

44,600

Additional Buyer’s Stamp Duty (ABSD)

255,000 (17%) or 75,000 (5%)

Down payment (bank loan)

375,000

Legal fees

3,000

Renovation & furnishings

70,000

Total costs (First property)

$1,992,600 (no ABSD)

Total costs (Second property)

$2,247,600 (includes 17% ABSD)

Purchasing a property in Singapore involves more than just the purchase price. From stamp duties to renovation and furnishing expenses, it’s essential to account for these additional costs to ensure accurate budgeting.


Budgeting for property in Singapore with Lendela

Budgeting for a property purchase involves meticulous planning and an understanding of all associated costs. From down payments and mortgages to stamp duties and renovation expenses, having a clear budget ensures you can confidently navigate the property market.

Lendela simplifies this process by allowing you to compare personalised loan offers from a network of trusted partners. With Lendela, you can save time, secure competitive rates, and make informed financial decisions for your property purchase.