Buying a building under construction in Singapore is very safe because the government strictly regulates developers. Developers must obtain a Housing Developer’s Licence and a Sale Licence for the property development before they can start selling.
In Singapore, all real estate transaction information, including prices, can be checked on government websites, ensuring a high degree of transparency in the transaction process.
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Process of Buying a Building Under Construction in Singapore
Day of booking: 5% of the purchase price (as booking fee)
Within 1-2 weeks: Developer sends the Sale and Purchase Agreement (S&P) to the law firm
Within 3 weeks of receiving the S&P: Arrange for financing and sign the agreement at the law firm
Within 2 weeks of signing the S&P: Buyer needs to pay the Buyer’s Stamp Duty
Within 8 weeks of booking: Pay 15% of the purchase price
*Total down payment is at least 20%, depending on the buyer’s Loan-to-Value (LTV) ratio
Payment Process for Buying a Building Under Construction in Singapore
In Singapore, the payment schedule for a building under construction follows the project’s construction progress.
Even if you plan not to take a loan, you do not need to pay the full amount at once. Payments are made according to the property’s construction stages.
Singapore Property Purchase Procedures
Property purchase procedures in Singapore must be conducted through a lawyer, with funds held in a third-party escrow account.
The legal fees for a typical law firm are approximately $2,500 to $3,000.
Singapore Property Purchase Taxes
For property prices above S$1 million;
If you are a Singapore Citizen, the total property tax is 4%.
If you are a Singapore Permanent Resident (PR), the total property tax is 9% (4% Buyer’s Stamp Duty + 5% Additional Buyer’s Stamp Duty).
If you are a Foreigner, the total property tax includes Buyer’s Stamp Duty (up to 6%) plus 60% Additional Buyer’s Stamp Duty.
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