Singapore’s private property market is one of the most competitive and prestigious in Asia. But before you dive into this world of luxury condos and landed homes, it’s essential to understand the cost of buying private property in Singapore. From government fees to hidden charges, this guide breaks down everything you need to know — in plain and simple language.
Whether you’re a first-time buyer or a seasoned investor, knowing the actual expenses involved can save you time, money, and future headaches.
Why Private Property in Singapore is Highly Sought After
Private properties in Singapore offer more exclusivity, better facilities, and often higher potential returns compared to HDB flats. These properties include:
- Condominiums
- Executive Condominiums (after 10 years)
- Landed homes (bungalows, terraces, semi-Ds)
But they also come with a higher price tag — not just in terms of the sale price, but also the overall cost of buying private property in Singapore.
Upfront Costs You Shouldn’t Ignore
Purchase Price
Let’s start with the obvious. The cost of a private property can range widely depending on location, size, and type. On average:
- Outside Central Region: SGD 1 million – SGD 2 million
- Rest of Central Region: SGD 2 million – SGD 3.5 million
- Core Central Region: SGD 3.5 million and up
Prices can climb significantly for new launches or luxury properties. But the purchase price is just the beginning.
Option Fee and Down Payment
To secure a property, you’ll need to pay an Option to Purchase (OTP) fee, typically 1% of the purchase price.
Once you exercise the OTP, you’ll pay the remaining 4%, bringing your total down payment to 5%.
If you’re taking a loan, you’ll also need to pay at least 20% of the property price upfront (5% in cash, 15% in cash or CPF).
Government-Related Costs
Buyer’s Stamp Duty (BSD)
This is a mandatory tax on all property purchases. The BSD rate is:
- 1% on the first SGD 180,000
- 2% on the next SGD 180,000
- 3% on the next SGD 640,000
- 4% on anything above SGD 1 million
- 5% for residential property portion exceeding SGD 1.5 million
- 6% on value exceeding SGD 3 million
So for a SGD 2 million condo, BSD could cost you over SGD 84,600.
Additional Buyer’s Stamp Duty (ABSD)
If you’re a foreigner, PR, or already own property, the ABSD applies:
- Singapore Citizens buying 2nd property: 20%
- Permanent Residents buying any property: 5%–30%
- Foreigners: 60%
This is a significant part of the cost of buying private property in Singapore, especially for investors.
Financing and Loan-Related Expenses
Bank Loan Costs
Most buyers in Singapore finance their purchase via a home loan. Banks typically offer up to 75% Loan-to-Value (LTV) ratio, depending on your eligibility.
You’ll also need to budget for:
- Valuation fees: SGD 300–600
- Legal fees for loan processing: SGD 2,500–3,000
- Mortgage insurance (optional but advisable)
Legal Fees and Conveyancing
Hiring a lawyer is essential to handle the conveyancing process — the legal transfer of property ownership. Legal fees usually range from SGD 2,500 to SGD 5,000.
You can consider working with professionals like Penrith for trusted and efficient real estate legal and advisory services to ensure a smooth transaction.
Ongoing and Hidden Costs to Plan For
Property Tax
The government charges annual property tax based on your property’s Annual Value (AV). Rates range from 4% to 16% for owner-occupied properties, and 12% to 36% for investment properties.
Maintenance Fees
If you’re buying a condo, you’ll pay monthly maintenance fees (SGD 300–600/month) to the Management Corporation. The fancier the condo, the higher the fees.
Renovation and Furnishing
New units are often sold bare. Renovation costs for private properties can easily go up to SGD 50,000 – SGD 150,000, depending on the scale.
Insurance
You should also factor in home insurance, which typically costs SGD 200–500 per year. It protects your home from damage, theft, or natural disasters.
Tips to Manage the Cost of Buying Private Property in Singapore
Do Your Homework
Compare prices across different districts. Some areas offer better value for similar property types.
Use CPF Wisely
You can use your CPF Ordinary Account savings for down payment and mortgage payments — but leave a buffer for retirement needs.
Get Pre-Approved for a Loan
Knowing your loan eligibility helps you narrow down your options and avoid disappointment.
Work with Experts
From lawyers to real estate consultants, having professionals by your side ensures you make smart, informed decisions. For reliable guidance, consult the experienced team at Penriths, your go-to partner for navigating property transactions in Singapore.
Is Buying Private Property in Singapore Worth It?
Despite the high costs, Singapore’s private real estate market remains one of the most stable and lucrative in Asia. If you’re looking for long-term investment, rental income, or simply a premium lifestyle, private property can be an excellent choice.
Just remember: the cost of buying private property in Singapore goes beyond the asking price. Proper budgeting and planning are crucial to avoid financial stress.
Final Thoughts
The cost of buying private property in Singapore may seem intimidating at first — but with the right guidance and realistic expectations, it can be a rewarding journey.
From upfront payments and legal fees to taxes and maintenance, being aware of all the costs involved helps you make confident, informed decisions. Whether you’re investing for profit or looking for a dream home, the key is to prepare wisely.
For expert help with navigating Singapore’s property landscape, check out Penrith Condo— your trusted resource in real estate and legal services.
