Top 10 Frequently Asked Questions About Singapore Real Estate

Flora He: BTOs are cheaper and offer a fresh 99-year lease but require a 3 to 5-year wait. Resale HDB flats cost more but allow you to move in immediately and choose your exact location.

• BTO Pros/Cons: Heavily subsidized, high potential for capital appreciation, but subject to balloting and construction delays.
• Resale Pros/Cons: Immediate availability, eligible for up to $160,000 in CPF Housing Grants, but typically requires cash over valuation (COV).

Flora He: Buyers must prepare cash and CPF for the downpayment (20–25%), Buyer's Stamp Duty (BSD), legal conveyancing fees, and valuation fees.

Depending on your residency status and how many properties you own, you may also be required to pay Additional Buyer's Stamp Duty (ABSD), which can range from 20% to 60% of the purchase price.

Flora He: Yes, you can use savings from your CPF Ordinary Account (OA) to pay for the property downpayment, stamp duties, legal fees, and monthly mortgage installments.

However, usage is capped by the Valuation Limit (VL) and Withdrawal Limit (WL). Financial experts recommend keeping a cash buffer in your OA rather than wiping it out completely.

Flora He: When you sell your property, you must refund the principal amount you withdrew from your CPF OA, plus the accrued interest, back into your CPF account.

This accrued interest is the 2.5% p.a. your money would have earned if it remained in the account. This refund reduces the direct cash proceeds you pocket from the sale, though the funds remain yours to use for your next property or retirement.

Flora He: HDB owners must complete a Minimum Occupation Period (MOP) — typically 5 years for Standard flats and 10 years for Plus/Prime flats — before selling.

Private condo owners do not have an MOP but will face a Seller's Stamp Duty (SSD) penalty of up to 12% if they sell the property within the first 3 to 4 years of purchase.

Flora He: Market value is determined by the recent transacted prices of similar nearby units, not by the amount spent on interior renovations.

For private properties, banks issue indicative valuations. For HDB flats, an official valuation is only conducted by HDB after a buyer secures the Option to Purchase (OTP).

Flora He: Selling first provides financial certainty and avoids upfront ABSD, but requires temporary housing. Buying first ensures a seamless move but requires paying ABSD upfront and dealing with tighter loan limits.

• Note: Married Singaporean couples who buy first can apply to have their ABSD remitted if they sell their first home within 6 months of acquiring the new one.

Flora He: Yes, Singapore Citizens can keep their HDB flat and buy a private condo once the HDB reaches its MOP, though they must pay ABSD on the second property.

Singapore Permanent Residents (PRs) cannot hold both; they must sell their HDB flat within 6 months of buying a private property.

Flora He: Yes, but former private property owners face wait-out periods depending on the type of HDB they want to buy.

You can buy a non-subsidized resale HDB immediately (if you don't take an HDB loan). However, you must wait 15 months to buy a subsidized flat, or 30 months to apply for CPF Housing Grants and BTOs.

Flora He: Property commissions are negotiable, but market standard is 1% to 2% (plus GST) paid by the seller.

• Private Property Buyers: Usually pay no commission; the buyer's agent splits the fee with the seller's agent.
• HDB Resale Buyers: Typically pay a 1% commission to their agent for market analysis, negotiation, and paperwork.