Embarking on your homeownership journey in Singapore is an exciting milestone, but it's crucial to be well-prepared for the financial commitments involved. Beyond the purchase price itself, there are various upfront costs and fees associated with buying a property.
In this guide, we'll delve into the typical upfront costs you can expect when purchasing a house in Singapore, covering everything from application fees and stamp duties to conveyancing fees and insurance premiums. We'll also explore how these costs can vary depending on the type of property and your financing arrangements.
If you prefer to listen rather than read, you can access our podcast episode on the hidden costs of buying a home in Singapore here:
Application Fees
Before you even begin your house hunt, it's important to be aware of the initial application fees that kickstart the process. These fees are typically administrative charges and vary depending on whether you're buying a new HDB flat or a resale property.
- For new HDB flats, there's a nominal application fee of $101. This fee applies when you submit your application to ballot for a Build-to-Order (BTO) flat.
- In the case of resale HDB flats, both buyers and sellers are required to pay an application fee. The fee is $40 for 1- and 2-room flats and $80 for 3-room or larger flats2.
These application fees are non-refundable, regardless of whether your application is successful or not. So, it's essential to factor them into your budget from the outset.
Option Fees
What is an option fee?
When you've found a property you'd like to purchase, you'll need to pay an upfront option fee to secure it.
Think of the cost of the option fee as a deposit that shows your genuine interest in buying the property. During the option period, the seller cannot sell the house to anyone else. This gives you time to conduct due diligence, such as arranging for financing and conducting legal checks, before committing to the purchase.
There are two main types of option fees:
Option Fee
This is the initial fee you pay to secure the option to purchase.
- For HDB flats, the option fee is typically $1,0003.
- For private properties, it is typically 1% of the purchase price.
Option Exercise Fee
If you decide to proceed with the purchase after the option period, you'll need to pay the option exercise fee to complete the transaction.
- For HDB flats, this fee cannot exceed $5,000, including the initial option fee3.
- For private properties, it is usually 4% of the purchase price (or 9% for some new launch condos).
It's important to remember that option fees are typically non-refundable, so if you choose not to buy the house within the option period, you'll lose that money.
These fees are usually paid in cash, adding to the initial upfront costs. Understanding the implications of option fees is crucial when navigating the property buying process.
Agent’s Commission
When buying a property in Singapore, it's important to be aware of the associated agent's commission. According to industry sources like 99.co, the buyer's commission for property typically falls between 1% to 2% of the property price4.
It is important to take note of new regulations5, effective from 1 July 2024, which aim to minimise potential conflicts of interest by ensuring that buyer's agents are compensated directly by their clients. So, if you're engaging an agent to help you buy a property, remember that you'll likely be responsible for their commission.
It's worth noting that an agent's commission is usually negotiable. Don't hesitate to discuss the fee structure with your agent upfront and explore potential options for reaching a mutually agreeable arrangement.
Also, keep in mind that you cannot use your CPF funds to pay the agent's commission. This upfront cost needs to be factored into your cash outlay when purchasing a house in Singapore.
Stamp Duty
What is stamp duty & what are the rates?
Stamp duty is a tax levied on certain legal documents, including those related to property transactions. In Singapore, you'll encounter two main types of stamp duty when buying a property: Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD).
Buyer Stamp Duty
Buyer's Stamp Duty is a tax payable on the purchase price or market value of the property, whichever is higher.
| On or after 15 Feb 2023 | ||
| Purchase price or market value of the property | BSD rates for residential properties | BSD rates for non-residential properties |
| First $180,000 | 1% | 1% |
| Next $180,000 | 2% | 2% |
| Next $640,000 | 3% | 3% |
| Next $500,000 | 4% | 4% |
| Next $1,500,000 | 5% | 5% |
| Remaining amount | 6% | |
BSD is rounded down to the nearest dollar, subject to a minimum duty of $1.
Additional Buyer's Stamp Duty (ABSD)
Additional Buyer's Stamp Duty is an additional tax levied on Singapore Citizens buying second or subsequent properties, Singapore Permanent Residents, foreigners, and entities.
| Profile of Buyer | ABSD Rates (On or After 27 Apr 2023) |
| Singapore Citizens (SC) buying first residential property | Not applicable |
| SC buying second residential property | 20% |
| SC buying third and subsequent residential property | 30% |
| Singapore Permanent Residents (SPR) buying first residential property | 5% |
| SPR buying second residential property | 30% |
| SPR buying third and subsequent residential | 35% |
| Foreigners (FR) buying any residential property | 60% |
| Entities buying any residential property | 65% |
| Housing Developers buying any residential property | 35% (plus Additional 5% non-remittable) |
How much stamp duty do I need to pay?
Here's an example of how to calculate BSD for a property purchased at $5,000,000 market value:
| Property Value | BSD Rate | Calculation |
| First $180,000 | 1% | $180,000 x 1% = $1,800 |
| Next $180,000 | 2% | $180,000 x 2% = $3,600 |
| Next $640,000 | 3% | $640,000 x 3% = $19,200 |
| Next S$500,000 | 4% | S$500,000 x 4% = S$20,000 |
| Next S$1,500,000 | 5% | S$1,500,000 x 5% = S$75,000 |
| Remaining S$2,000,000 | 6% | S$2,000,000 x 6% = S$120,000 |
| Total BSD Payable | S$1,800 + S$3,600 + S$19,200 + S$20,000 + S$75,000 + S$120,000 = S$239,600 | |
Remember that this is just an example, and the actual stamp duty payable may vary depending on your individual circumstances and the type of property you're purchasing.
It's always advisable to consult with a mortgage specialist for personalised guidance on stamp duty calculations.
Conveyancing Fees
What is Conveyancing Fee?
Conveyancing fees are legal fees you'll incur when buying or selling a property. These fees cover the services of a lawyer who handles all the necessary legal paperwork on your behalf. This includes tasks such as:
- Transferring the ownership title of the property
- Discharging the mortgage on your existing property (if applicable)
- Conducting background checks and due diligence
- Preparing and reviewing legal documents
Conveyancing fees in Singapore typically range from $1,300 up to around $3,000, depending on the complexity of the transaction and the lawyer you engage. It's advisable to obtain quotes from different lawyers to compare fees and services before making a decision.
Property Tax
What is property tax and what are the rates?
Property tax is an annual tax levied on property owners in Singapore. The amount of tax you pay is based on the Annual Value (AV) of your property, which is an estimate of the gross annual rent you could expect to receive if you rented out your property.
Owner-Occupier tax rates
If you own and live in your property, you'll be taxed at the owner-occupier tax rates6. These rates are lower than the tax rates for non-owner-occupied properties.
Here's the property tax rate table for owner-occupiers (effective 1 Jan 2025):
| Annual Value ($) | Tax rate effective from 1 Jan 2025 | Property Tax Payable |
| First $12,000Next $28,000 | 0%4% | $0$1,120 |
| First $40,000Next $10,000 | -6% | $1,120$600 |
| First $50,000Next $25,000 | -10% | $1,720$2,500 |
| First $75,000Next $10,000 | -14% | $4,220$1,400 |
| First $85,000Next $15,000 | -20% | $5,620$3,000 |
| First $100,000Next $40,000 | -26% | $8,620$10,400 |
| First $140,000Above $140,000 | -32% | $19,020 |
Non-Owner-Occupier residential tax rates
If you own a residential property but don't live in it (e.g., you're renting it out), you'll be taxed at the non-owner-occupier tax rates6.
Here's the property tax rate table for non-owner-occupiers (effective 1 Jan 2024 to 31 Dec 2024):
| Annual Value ($) | Effective 1 Jan 2024 | Property Tax Payable |
| First 30,000Next $15,000 | 12%20% | $3,600$3,000 |
| First $45,000Next $15,000 | - 28% |
$6,600$4,200 |
| First $60,000Above $60,000 | - 36% |
$10,800 |
Insurance Premium
Protecting your home against unforeseen events is an important aspect of homeownership. While not mandatory for all property types in Singapore, home insurance provides financial security in case of damage or loss. There are two main types of home insurance coverage:
- Insured Perils: This type of policy covers specific perils listed in the policy, such as fire, lightning, and explosions.
- All Risks: This comprehensive policy covers a wider range of risks, including accidental damage, theft, and vandalism, in addition to the insured perils.
According to the General Insurance Association of Singapore, home insurance premiums typically range from $50 to $350 per $100,000 of insured value7. The actual premium you pay will depend on factors such as the type of coverage, the size and location of your property, and the value of your belongings.
It's important to note that while general home insurance is optional for private property owners, fire insurance is compulsory for all HDB flats.
Here's the fire insurance rate table for HDB flats8:
| Flat Type | 5-Year Premium (including 9% GST) | Sum Insured |
| 1-room/ Community Care Apartment | $1.11 | $37,900 |
| 2-room/ 2-room Flexi/ Studio Apartment | $1.99 | $57,000 |
| 3-room | $3.27 | $83,300 |
| 4-room/ S1 | $4.59 | $117,000 |
| 5-room/ S2/ 3-Generation | $5.43 | $144,800 |
| Executive/ Multi-Generation | $6.68 | $176,700 |
Renovation Fees
While the thrill of buying a new house in Singapore often centres on purchasing the property itself, many first-time homebuyers don't fully realise the upfront costs involved.
Transforming your new house into a personalised haven that reflects your style can involve significant costs that are easy to overlook during the initial budgeting phase
Renovation expenses can vary significantly depending on several factors:
- Property/Room Size
- Age of Property
- Interior design style
- Workmanship
- Material Cost
- Project Timeline
According to Qanvas, a popular renovation platform in Singapore, the average renovation cost for a new 3-bedroom HDB flat is around $34,000. However, this is just a benchmark, and your actual costs may vary.
Here's a table from ValueChampion outlining estimated average renovation costs for different interior design styles, providing a helpful reference point:
| Style | Average Cost HDB | Average Cost Condo | Average Cost Landed | Average Cost/Sqm |
| Contemporary | S$72,530 | S$78,133 | S$657,950 | S$564 |
| Modern | S$60,304 | S$78,386 | S$423,652 | S$517 |
| Minimalist | S$62,471 | S$74,494 | S$358,125 | S$558 |
| Scandinavian | S$55,315 | S$101,365 | S$358,125 | S$489 |
| Eclectic | S$69,314 | S$75,572 | S$368,400 | S$603 |
| Industrial | S$54,093 | S$74,264 | S$137,167 | S$501 |
| Traditional | S$46,890 | S$71,630 | S$218,882 | S$552 |
| Transitional | S$58,498 | S$81,899 | S$189,081 | S$620 |
| Retro | S$83,325 | S$97,500 | S$85,000 | S$659 |
| Vintage | S$89,556 | S$80,522 | S$50,000 | S$736 |
It's worth noting that the kitchen and bathroom are generally the most expensive areas to renovate. This is due to the specialised fixtures, plumbing, and tiling involved.
Be Prepared for These Hidden Homeownership Costs
While we've covered the major costs associated with what you have to pay upfront when buying a house in Singapore, it's important to be aware that there may be other hidden costs that can catch you off guard.
Even after you’ve calculated the best bank loan for your HDB purchase, other expenses like moving costs, and furniture and appliances for your new home, need to be accounted for. Our guide is just a starting point for new homeowners and it’s prudent to conduct your own research.
Here’s a summary of the costs covered in this article for those looking to buy a HDB in Singapore.
| Cost Category | Description | Typical Range (HDB) |
| Application Fees | Administrative fees for applying to purchase a property | $10 - $80 |
| Option Fees | Fees to secure the option to purchase a property | $1 - $1,000 |
| Agent's Commission | Fees paid to real estate agents for their services | 1% - 2% of purchase price |
| Stamp Duty | Taxes levied on property transactions | Varies based on purchase price and buyer profile |
| Conveyancing Fees | Legal fees for handling property transfer and related paperwork | $1,300 - $3,000 |
| Property Tax | Annual tax based on the value of your property | Varies based on Annual Value and tax rates |
| Insurance Premium | Cost of home insurance (optional for private properties, mandatory fire insurance for HDB) | $50 - $350 per $100,000 of insured value |
| Renovation Fees | Cost of renovating your new home | Varies widely based on property size, age, materials, and scope of work |
Buying a house in Singapore is a significant financial decision, and understanding the various costs involved is crucial for making informed choices. By being prepared for both the upfront and hidden purchasing costs of homeownership, you can ensure a smoother and more financially secure transition into your new home.
If you need help navigating the intricacies of the costs associated with homeownership, don’t hesitate to reach out to us. Mortgage Master's experienced consultants can provide personalised guidance and support throughout your home buying journey.
