Recently, many people have expressed interest in buying a home in Singapore. However, foreigners and new immigrants can only purchase private condominiums. So today, we’ll discuss the process of buying a condo in Singapore to clarify any doubts for those planning to settle down here. The entire process of buying a condo in Singapore can generally be broken down into seven steps, which we will explain in detail below.
Step 1: Hire Professionals for Expert Guidance
Whether you’re looking to buy a new or resale condominium in Singapore, the indispensable first step is to seek professional guidance. Besides the familiar real estate agents, hiring a lawyer is a mandatory part of purchasing property in Singapore. A real estate agent will help you navigate all the potential issues during the home-buying process, while a lawyer will assist with the legal procedures. In addition to the well-known steps of searching for and viewing properties, an experienced agent can also answer all your questions about buying property in Singapore, such as how to calculate taxes, apply for a bank loan, and plan your investment strategy. If you have decided to purchase a condominium in Singapore, feel free to contact Leo Kwek at any time for detailed and professional advice.
Step 2: Select a Condominium That Meets Your Needs
You need to be clear about your purpose and goals for buying a property, as well as your requirements for the condo’s size, budget, and location. Based on these criteria, you can then search for suitable condominium projects. Of course, during the search and selection process, you can fully rely on the help of a real estate agent, as agents or agencies will have a portfolio of properties available for sale.
SHL is an appointed marketing agency for all developers and has listings for new condominiums across the island.
Condo Listings:
Step 3: Pay the Deposit, Sign the Option to Purchase, and Secure a Housing Loan
After selecting a condominium you like, you will need to pay a booking fee to the developer or resale seller. The developer or seller will then grant you an Option to Purchase (OTP). Only after receiving the OTP can you apply for a housing loan from a bank.
If you are buying a new condominium, the following steps are required:
- On the booking day: 5% of the purchase price (as a booking fee)
- Within 1-2 weeks: The developer sends the Sales and Purchase Agreement to your law firm
- Within 3 weeks of receiving the S&P Agreement: Arrange for the loan and go to the law firm to sign
- Within 2 weeks of signing the S&P Agreement: The buyer must pay the Buyer’s Stamp Duty
- Within 8 weeks of booking: Pay 15% of the purchase price
- Make payments according to the construction progress
If you are buying a resale condominium, the following steps are required:
- Choose a property you are satisfied with (through a real estate agent or property portal);
- Contact the seller to negotiate and agree on a mutually acceptable price;
- Pay a 1% option fee;
- Apply for a loan from a bank;
- Within the next 14 days, pay a 4% exercise fee;
- Sign the purchase agreement;
- On the completion date, pay the remaining purchase price minus the housing loan amount;
- The property is transferred.
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Step 4: Pay the Buyer’s Stamp Duty
Regardless of your status as a Singapore Citizen, Permanent Resident (PR), or foreigner, you are required to pay a Buyer’s Stamp Duty (BSD) to the government when purchasing property in Singapore. The BSD is calculated based on the purchase price or the market value of the property as stated in the document to be stamped, whichever is higher. The current BSD rates are as follows:
| Purchase Price or Market Value | Buyer’s Stamp Duty (BSD) Rate |
| First $180,000 | 1% |
| $180,000 to $360,000 | 2% |
| $360,000 to $1,000,000 | 3% |
| Above $1,000,000 | 4% |
Additionally, you will need to pay an Additional Buyer’s Stamp Duty (ABSD) based on your residency status and the number of residential properties you own.
| Additional Buyer’s Stamp Duty (ABSD) Rates | |||
| Buyer’s Profile | First Property | Second Property | Third and Subsequent Property |
| Singapore Citizens | 0% | 20% | 30% |
| Singapore Permanent Residents (PRs) | 5% | 30% | 35% |
| Foreigners | 60% | 60% | 60% |
| Entities | 65% | 65% | 65% |
| Trustees | 65% | 65% | 65% |
Regarding these two taxes, if you are in Singapore, you must pay them to the Inland Revenue Authority of Singapore (IRAS) within 14 days of signing the sale and purchase agreement. If the agreement was signed overseas, the deadline for payment is within 30 days of the document being received in Singapore.
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Step 5: Pay Legal and Real Estate Agent Fees
According to industry practice, you generally do not need to pay an agent’s commission when buying a condominium in Singapore. If you are buying a resale condo, the seller will pay the commission to their appointed agent, who will then share it with the co-broke agent. If you are buying a brand-new condo, the developer will pay the commission to your real estate agent.
As for legal fees, they are typically around S$2,500 to S$3,000, unless you are purchasing a high-value condominium, have unconventional requirements, or are overseas.
If you have applied for a housing loan, you will also need to pay a mortgage stamp duty, capped at S$500.
Step 6: Wait to Collect the Keys to Your Condominium
Once you have settled all the necessary payments and paperwork, you can look forward to collecting the keys and moving into your new home. If you purchased a unit in a new development project, you might need to wait one to two years or more before you can move in, depending on the construction stage of the project.
If you are buying a ready-to-move-in unit in a new condominium that has already obtained its Temporary Occupation Permit (TOP), you can move in after completing the purchase process.
If you are buying a resale unit, you can likely move in immediately after the purchase process is completed, as the previous owner will hand over the property and keys to you.
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The above outlines the detailed process of buying a condominium in Singapore. We hope this has successfully answered your questions. If you have decided to purchase property in Singapore, please feel free to contact us. We will provide advice tailored to your specific situation.
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