The article is suitable for Singaporeans, Singapore PRs & Foreigners, and applicable for Singapore Residential Property only.
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The cost of buying a property is more than just the purchase price negotiated with the seller. There are BSD, ABSD, Conveyancing Fees, Property Agent Commission & Valuation Fees involved. Hence, it is important that you plan your finance based on these “extra” costs before heading out to buy your property.
This article will highlight the “extra” costs that will be payable when you buy a Singapore Property (Residential).
Here are additional costs in buying your Singapore Residential Property:
- Buyer Stamp Duty
- Additional Buyer Stamp Duty
- Conveyancing/Legal Fee
- Property Agent Commission
- Valuation Fee
And we end off with a case study to illustrate the total cost of buying a property in Singapore.
Anchor for BDS
Buyer Stamp Duty
Buyer Stamp Duty is tax paid on the acceptance of Option to Purchase (OTP) or Sales & Purchase Agreements (S&P). This stamp duty is paid based on the purchase price or market price of the property, whichever is higher. The amount of stamp duty payable is shown in the table below:
| Payment Schedule | % of Stamp Duty Chargeable |
| On the first $180,000 | 1 |
| On the next $180,000 | 2 |
| On the next $640,000 | 3 |
| Thereafter | 4 |
Example of calculating the buyer stamp duty payable:
So, if you are buying a property at $2,000,000, the buyer stamp duty payable is $64,600 and the calculation is shown below:
| Payment Schedule | Buyer Stamp Duty Payable |
| On the first $180,000 | 1% of $180,000 = $1,800 |
| On the next $180,000 | 2% of $180,000 = $3,600 |
| On the next $640,000 | 3% of $640,000 = $19,200 |
| Remaining $1,000,000 | 4% of $1,000,000 = $40,000 |
| Total Buyer Stamp Duty Payable | $1,800 + $3,600 + $19,200 + $40,000 = $64,600 |
Anchor for ABSD
Additional Buyer Stamp Duty
Additional Buyer Stamp Duty (ABSD) was introduced to cool the residential property market. It is payable on top of the existing Buyer Stamp Duty (BSD) and is payable by certain groups of property buyers. The amount of ABSD payable for purchase(s) made by a buyer is as follows:
| Buyer’s Citizenship | Additional Buyer Stamp Duty (ABSD) Payable | ||
| 1st Property Purchased | 2nd Property Purchased | 3rd and subsequent Purchased | |
| Singapore Citizen | 0% | 7% | 10% |
| Singapore Permanent Resident (SPR) | 5% | 10% | 10% |
| Foreigners & Non-Individuals | 15% | 15% | 15% |
When multiple buyers of different profiles are jointly purchasing a property, the higher ABSD rate will apply on the purchase price/value of the property. For example, if a foreigner and a Singaporean jointly buy a property worth of $1,000,000 with an equal share, the ABSD rate of 15% shall apply to the S$1,000,000, that is, $150,000 of ABSD is payable.
However, for married couples made up of Singaporean & Singapore Permanent Resident or Singaporean & Foreigner buying their matrimonial house, they are eligible to apply for remission of ABSD.
Also, nationals and Permanent Residents of Switzerland, Liechtenstein, Norway, Iceland, and Nationals of United States of America, are accorded the same treatment as Singaporeans.
And as a note, if you are Singaporean or Singapore PR looking to buy a brand new Executive Condominium or Build-to-Order or Resale HDB, ABSD is not applicable as you have to sell away your existing property when you purchase a brand new Executive Condominium, Build-to-Order or Resale HDB.
You may refer to IRAS: Computation of ABSD for details or call the IRAS Hotline at +65 6351 3697 if your scenario is not straightforward.
Useful Tool: ABSD Calculator
Anchor for conveyancing
Conveyancing Fees (also known as Legal Fees)
- Between S$1,800 to S$2,500
Conveyancing Fees is made up of several components like mortgage stamp duty, CPF Legal Fees (if CPF is involved), Professional Fees of Lawyers etc. It is important that you check with the legal firms that the price they have quoted you includes the services mentioned. There are cases where legal firm throws a bad “surprise” to a property buyer – for instance, that he/she need to pay “additional” for CPF legal fees if he/she intend to use CPF to reimburse the stamp fees that you have paid in cash. As a guide, conveyancing fees is in the range of S$1,800 to S$2,500 for HDB and Private Properties, depending on the purchase price and type of the property purchased.
Anchor for Property Agent Commission
Property Agent Commission (also known as Real Estate Salesperson Service Fee)
- 0 to 1% of Purchase Price
If you are engaging the service of a property agent (also known as Real Estate Salesperson (RES) or real estate broker), there may be a service fee or commission you need to pay to the property agent. For purchase of HDB, the commission is typically 1% of the purchase price. For purchase of private property, there are increasing trends that buyers do not pay the commission. Instead the property agent that serves you collect their fees from the seller (or seller’s agent). However, if their service is good, you may still reward them with commission, typically 1% of the purchase price. For purchase of property directly from developers, no fees are payable to the property agent.
Anchor for Valuation Fees
Valuation Fees
- S$200 to S$500
Before the bank you have appointed releases the fund to finance your property purchase, they will request for a valuation of the property to be done to qualify the loan. The fees varies between the type and value of property purchased and is usually between S$200 to S$500.
Anchor for Case Study
Case Study – Total Fund Required
Given the presence of Buyer Stamp Duty, Additional Buyer Stamp Duty, legal fees, professional fees to property agents, valuation fees etc, the amount required to purchase a property can be significantly higher than just the purchase price.
Say you are a Singaporean, buying a 2nd property at the purchase price of S$1,500,000. You employed the help of a property agent and you agreed to pay 1% commission on the purchase price. You would have to come up with additional funds of S$162,100. Henceforth, it is important that you plan out your finances before signing on the dotted line to purchase the property. To make life easier for you, you may use Realila’s Property Budget Calculator to work out the funds you need to buy your dream property.
| Purchase Price | S$1,500,000 |
| Additional Cost | S$162,100 |
| BSD | S$39,600 |
| ABSD | S$105,000 |
| Agent Fee | S$15,000 |
| Estimated Legal Fee | S$2,500 |
| Estimated Valuation Fee | S$500 |
| Total Fund Required | S$1,662,100 |
Note: Agent Fee may be subjected to prevailing GST.
Do hope the above article helps you in planning your finance before you buy your property. If you have any questions or feedback, feel free to write to us at hello@realila.sg. We love to hear from you.
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Disclaimer: Information provided on this website is general in nature and does not constitute financial advice. Realila will endeavour to update the website as needed. However, information can change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision.
