Buying a condo in Singapore is a huge milestone—and honestly, a pretty big commitment. For young professionals, it’s not just about getting a place of your own; it’s also a serious financial move that can shape your future for years. From high property prices and government regulations to the CPF system and Additional Buyer’s Stamp Duty (ABSD), buying a condo here comes with its own set of rules.
Whether you’re dreaming of a sleek new launch in a central location or eyeing a resale unit in a mature estate, here’s what you need to know before signing on the dotted line—plus some solid, realistic tips for saving up that all-important down payment.
Is Buying a Condo in Singapore the Right Move?
Condo living in Singapore is often seen as an upgrade from HDB flats. You get more privacy, better facilities, and usually, a better location. But it comes at a cost—and we’re not just talking about the price tag.
Pros of Condo Ownership in Singapore
- Private property ownership with no income ceiling
- Access to facilities like swimming pools, gyms, and BBQ pits
- Typically located in more central or convenient areas
- No Minimum Occupation Period (MOP) like with HDB flats
Cons You Shouldn’t Ignore
- More expensive upfront and long-term costs compared to HDBs
- Monthly maintenance fees (some can be as high as $400 or more)
- Subject to ABSD if you already own other property
- Potential volatility in the private property market
Understand the Costs Involved in Buying a Condo in Singapore
Owning a condo here is about more than just affording the unit itself. There are multiple hidden (and not-so-hidden) costs to factor in.
Key Costs to Consider
- Option to Purchase (OTP): Typically 1% of purchase price
- Down Payment: Minimum 25% of the property price (5% cash, 20% CPF or cash)
- Legal Fees: Usually ranges from $2,500 to $3,000
- Buyer’s Stamp Duty (BSD): Progressive rates starting from 1% to 4%
- Additional Buyer’s Stamp Duty (ABSD): Applicable if it’s your second or third property
- Property Tax
- Monthly Maintenance Fees: Based on share value
- Home Insurance and Renovation Costs
If you’re taking a bank loan, you’ll also need to deal with the Loan-to-Value (LTV) limit (currently 75%) and ensure you pass the Total Debt Servicing Ratio (TDSR) test, which caps monthly loan repayments at 55% of your gross monthly income.
Saving for the Down Payment in Singapore: Tips That Actually Work
For most young professionals, coming up with that initial 5% in cash (plus the other 20% from CPF or savings) is the biggest hurdle. Here’s how to tackle it realistically.
But first, here’s a realistic example of how much a condo down payment in Singapore actually is:
If you’re looking at a $1 million condo, you’d need at least $50,000 in cash for the 5% down payment, plus another $200,000 in CPF savings or additional cash for the remaining 20%. On top of that, you’ll need to budget for stamp duties and legal fees—so in total, you’re looking at roughly $270,000 upfront.
1. Know Your Target Number
Let’s say you’re eyeing a $1 million condo:
- 5% cash = $50,000
- 20% CPF/cash = $200,000
- Add legal fees, BSD, and you’re easily looking at $270,000 upfront
Knowing this helps you set concrete savings goals.
2. Maximise Your CPF
Your CPF Ordinary Account (OA) can be used for:
- Down payment (up to 20%)
- Monthly mortgage repayments
- Legal fees and stamp duties (in some cases)
Make voluntary top-ups to your OA if you can. Every bit counts.
3. Start an Automatic Savings Plan
Set up a GIRO transfer from your salary account to a dedicated “condo fund” savings account. Automating your savings makes it easier to stay on track—and less tempting to spend.
4. Channel Bonuses, Ang Bao, and Side Income Wisely
Year-end bonuses, performance incentives, and even freelance gigs or side hustles can help you fast-track your savings goal.
5. Cut Back on Lifestyle Spending
We’re not saying to give up all fun, but be mindful of unnecessary spending. Track your expenses using apps like Seedly or MoneyLover to identify leaks in your budget.
6. Consider Delaying Your Purchase
If prices are high or your savings aren’t there yet, renting or staying with family for another year might be the smarter move.
Know the Market and Property Rules in Singapore
Singapore’s property market is tightly regulated, and understanding those rules can make a big difference.
First-Time Buyer Incentives
If this is your first property and you’re a Singaporean citizen, you’re exempt from ABSD. This is a huge advantage—so use it wisely.
TDSR & MSR
- TDSR (Total Debt Servicing Ratio): Loan repayments can’t exceed 55% of your gross monthly income.
- MSR (Mortgage Servicing Ratio): Doesn’t apply to private condos, only to HDB purchases.
Lease Tenure Matters
Always check the remaining lease. Condos with less than 60 years of lease left may not be eligible for full CPF usage or full bank loans.
Questions to Ask Before You Commit
- Can I comfortably afford the mortgage, maintenance fees, and other recurring costs?
- Will I be living in this condo for at least 5–7 years?
- Is there good rental potential in case I decide to lease it out?
- Is the development in a good location with future growth potential?
Don’t just buy with your heart—buy with your head.
Should You Go for a New Launch or Resale Condo?
Both have their pros and cons, and your decision depends on your budget and timeline.
New Launch
- Brand-new facilities and fittings
- More modern layouts and features
- Progressive payment scheme, meaning you don’t pay the full loan immediately
Resale
- Immediate move-in
- More room for price negotiation
- May have larger unit sizes (especially older condos)
Quick Recap: What to Keep in Mind
- Understand all the costs—beyond just the unit price
- Save strategically for the 5% cash and 20% CPF/cash down payment
- Know your eligibility for loans and how TDSR affects your affordability
- Check for ABSD, lease tenure, and hidden fees
- Consider location, resale value, and rental potential
- Always do your homework on developers, the condo project, and the market