One of the first financial commitments you must make when buying a condominium in Singapore is the down payment. It’s well-known that purchasing property in Singapore is particularly expensive, but how much are the upfront costs exactly?
This article will break down the initial costs of buying a condo in Singapore, including the required condo down payment, to better illustrate how citizenship, the number of existing properties owned, and home loans collectively affect the down payment.
Table of Contents
Factors Affecting the Cost of a Condo Down Payment in Singapore
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Condo Down Payment: Additional Buyer’s Stamp Duty (ABSD)
Citizenship and the number of existing properties owned affect upfront costs because they are directly related to whether you need to pay ABSD and the corresponding tax rate.
The government first implemented ABSD on December 8, 2011, to curb the strong demand for real estate investment from Singapore citizens and foreign buyers. Another reason for its introduction was to keep housing affordable for locals and to allow property prices to grow sustainably with economic fundamentals.
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The latest cooling measures were implemented in December 2021, with an increase in ABSD rates. The latest ABSD rates are as follows:
Current ABSD Rates
| Buyer Profile | ABSD Payable (On or after Dec 16, 2021) |
| Singapore Citizens buying their first residential property | No ABSD payable (no change) |
| Singapore Citizens buying their second residential property | 17% |
| Singapore Citizens buying their third and subsequent residential properties | 25% |
| Permanent Residents (PRs) buying their first residential property | 5% (no change) |
| PRs buying their second residential property | 25% |
| PRs buying their third and subsequent residential properties | 30% |
| Foreigners buying any residential property | 30% |
| Entities (companies or associations) buying any residential property | 35% (plus an additional non-remittable 5% for housing developers) |
| Trustees buying any residential property | 35% |
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According to the ABSD rates above, Singaporeans buying their first condo (first property) in Singapore do not need to pay anything. However, if they are buying a second home, they will face a 17% ABSD. Assuming you plan to buy a condo worth S$1 million as your second home, you will need to pay S$170,000 in ABSD.
PRs, on the other hand, must pay a 5% ABSD for their first property purchase. For their second property, they must pay a 25% ABSD, and for their third and subsequent purchases, a 30% ABSD.
Foreigners, on the other hand, must pay a 30% ABSD every time they purchase a residential property in Singapore. This means if a foreigner buys a condo worth S$1 million, they will need to pay S$300,000 in ABSD.
Therefore, most foreign real estate investors prefer to buy commercial properties rather than private properties, as ABSD does not apply to commercial properties. If you are looking for a commercial property, you can consult with us.
Of course, there are exceptions to ABSD. For example, under the Free Trade Agreements (FTAs), citizens or permanent residents of Switzerland, Liechtenstein, Norway, Iceland, or the United States do not need to pay any ABSD on their first property purchase.
Other methods include decoupling or, as mentioned above, purchasing a commercial property.
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Condo Down Payment: Buyer’s Stamp Duty (BSD)
While certain buyers can be exempted from paying ABSD, no one, whether a Singapore citizen, PR, or foreigner, can be exempted from paying Buyer’s Stamp Duty (BSD). This is because documents affecting the transfer of property ownership must be stamped to be official.
BSD is calculated based on the purchase price stated in the instrument to be stamped or the market value of the property, whichever is higher.
If a monetary discount on the selling price is obtained, this factor will be taken into account when calculating the tax, provided that the net price still reflects the actual market value of the property.
It is important to note that cash discounts must be stated in the document to be stamped; otherwise, this factor will not be considered when calculating the BSD. Here are the current BSD rates:
| BSD (Residential Properties) | BSD (Non-Residential Properties) | |
| First S$180,000 | 1% | 1% |
| Next S$180,000 | 2% | 2% |
| Next S$640,000 | 3% | 3% |
| Next S$500,000 | 4% | 4% |
| Next S$1,500,000 | 5% | 5% |
| Amount exceeding S$3,000,000 | 6% |
Assuming you purchase a private condo with a selling price or value of S$1 million, the BSD payable by the buyer would be S$24,600. Here are the details of the BSD calculation for this specific example:
(S$180,000 x 1%) + (S$180,000 x 2%) + (S$640,000 x 3%) = S$24,600
*Note: If the property you are buying is less than S$1 million, there is a quick calculation method:
(3% x Purchase Price or Market Value) – S$5,400
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Condo Down Payment: Loan-to-Value (LTV) Ratio and Minimum Cash Down Payment
Besides the unit’s selling price, another factor that significantly affects the down payment is the LTV limit. The number of outstanding home loans you have will affect the LTV when buying a condo in Singapore, as well as the minimum cash down payment.
The details are as follows:
| Outstanding Home Loans | LTV | Minimum Cash Down Payment in Condo Down Payment |
| 0 | 75% or 55%* | 5% (if LTV is 75%) 10% (if LTV is 55%) |
| 1 | 45% or 25%* | 25% |
| 2 or more | 35% or 15%* | 25% |
*The lower LTV limit applies only if the loan tenure exceeds 30 years (25 years for HDB flats) or if the loan period extends beyond the borrower’s age of 65.
For example, if the LTV is 75% (loan tenure up to 30 years and does not exceed the borrower’s age of 65), this means there is a 25% funding gap that needs to be paid in cash and/or CPF Ordinary Account savings. If the condo’s selling price or value is S$1 million, this means a down payment of S$250,000 is due.
At least 5% of this 25% funding gap must be paid in cash to meet the minimum cash down payment. Therefore, out of the S$250,000 due, at least S$50,000 must be paid in cash.
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Case Study: Condo Down Payment Breakdown
The total initial cost considers the down payment (cash, CPF), BSD, ABSD, mortgage stamp duty, property valuation fees, and legal fees. Property valuation fees range from S$300 to S$500, while legal fees are estimated at S$3,000.
In the case study below, we assume the property being purchased is a condo worth S$1 million. Here is the cost breakdown, excluding mortgage stamp duty, property valuation, and legal fees.
Buying a Condo in Singapore: Upfront Costs for a Singapore Citizen (SC)
| Buyer Profile | SC buying first property | SC buying first property* | SC buying second property | SC buying second property* |
| BSD Amount | S$24,600 | S$24,600 | S$24,600 | S$24,600 |
| ABSD Rate | – | – | 17% | 17% |
| ABSD Amount | – | – | S$170,000 | S$170,000 |
| First loan paid off? | – | – | Yes | No |
| LTV | 75% | 55% | 45% | 25% |
| Condo Down Payment | S$250,000 | S$450,000 | S$550,000 | S$750,000 |
| Min. Cash Down Payment | 5% | 10% | 25% | 25% |
| Total Upfront Expenses | S$274,600 | S$474,600 | S$744,600 | S$944,600 |
*The lower LTV applies only if the loan tenure exceeds 30 years (25 years for HDB flats) or if the loan period extends beyond the borrower’s age of 65.
Buying a Condo in Singapore: Upfront Costs for a PR
| Buyer Profile | PR buying first property | PR buying first property* | PR buying second property | PR buying second property* |
| BSD Amount | S$24,600 | S$24,600 | S$24,600 | S$24,600 |
| ABSD Rate | 5% | 5% | 25% | 25% |
| ABSD Amount | S$50,000 | S$50,000 | S$250,000 | S$250,000 |
| First loan paid off? | – | – | Yes | No |
| LTV | 75% | 55%* | 45% | 25% |
| Condo Down Payment | S$250,000 | S$450,000 | S$550,000 | S$750,000 |
| Min. Cash Down Payment | 5% | 10% | 25% | 25% |
| Total Upfront Expenses | S$324,600 | S$524,600 | S$824,600 | S$1,024,600 |
*The lower LTV applies only if the loan tenure exceeds 30 years (25 years for HDB flats) or if the loan period extends beyond the borrower’s age of 65.
Buying a Condo in Singapore: Upfront Costs for Foreigners
| Buyer Profile | Foreigner buying first property | Foreigner buying first property* | Foreigner buying second property | Foreigner buying second property* |
| BSD Amount | S$24,600 | S$24,600 | S$24,600 | S$24,600 |
| ABSD Rate | 30% | 30% | 30% | 30% |
| ABSD Amount | S$300,000 | S$300,000 | S$300,000 | S$300,000 |
| First loan paid off? | – | – | Yes | No |
| LTV | 75% | 55%* | 45% | 25% |
| Condo Down Payment | S$250,000 | S$450,000 | S$550,000 | S$750,000 |
| Min. Cash Down Payment | N/A | N/A | N/A | N/A |
| Total Upfront Expenses | S$574,600 | S$774,600 | S$874,600 | S$1,074,600 |
*The lower LTV applies only if the loan tenure exceeds 30 years (25 years for HDB flats) or if the loan period extends beyond the borrower’s age of 65.
Since foreigners do not have a CPF account, they cannot opt to use their Ordinary Account (OA) savings to pay the down payment, which means their down payment must be paid in full with cash.
Buying a Condo in Singapore: Purchasing a Non-Landed Private Property
When considering buying a condo in Singapore, besides figuring out which home loan to apply for and budgeting for your new home, you also need to choose between a resale condo and a new launch condo.
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Condo Down Payment in Singapore
From the different total upfront costs, it is clear that Singapore citizens have the lowest expenditure, including the condo down payment, followed by Permanent Residents. On the other hand, considering the ABSD cost, foreigners face the highest rate at 30%, followed by PRs with a 5% ABSD on their first property.
Another factor that has a significant impact on upfront costs is the LTV, which largely depends on the existence of an outstanding home loan. Therefore, we strongly advise condo buyers to settle their existing home loans before purchasing another property.
Whatever your situation, if you need help with home loans, refinancing, or other related matters, Anjia SG is always ready to provide personalized and professional advice!
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