Singapore Private Residential Real Estate
Singapore’s private residential real estate market consists of largely non-landed properties. This comprises mainly condominiums and apartments.
The market also consist of landed properties, which comprises the Detached houses, Semi-detached houses and Terrace houses which forms a smaller proportion of the market but are highly coveted real estate due to its limited supply.
Market Segmentation
Segmentation by Regions
The market is geographically segmented to the Core Central Region (CCR), Rest of Central Region (RCR) and Outside Central Region (OCR) .
The CCR comprises Postal Districts 9, 10, 11 , the Downtown Core Planning Area and Sentosa. Parts of CCR include Orchard, River Valley, Bugis and Bukit Timah
RCR, commonly referred to as “City Fringe” comprises of the area within The Central Region Boundary excluding the CCR zone. This include areas such as Queenstown, Toa Payoh, Kallang and Marine Parade.
OCR refers to the area outside of the Central Region Boundary comprising suburban towns such as Tampines, Pasir Ris, Yishun etc.
Segmentation by Postal District
Another commonly referred to segmentation relates to the Postal Districts in Singapore. There are a total of 28 Postal Districts.
District 9 , 10 , 11 are commonly referred to as the Prime Districts in Singapore. They also form part of the Core Central Region (CCR). The CCR includes additional areas - the Downtown Core Planning Area and Sentosa.
| Postal District | Postal Sector(1st 2 digits of 6-digit postal codes) | General Location |
|---|---|---|
| 1 | 01, 02, 03, 04, 05, 06 | Raffles Place, Cecil, Marina, People's Park |
| 2 | 07, 08 | Anson, Tanjong Pagar |
| 3 | 14,15, 16 | Queenstown, Tiong Bahru |
| 4 | 09, 10 | Telok Blangah, Harbourfront |
| 5 | 11, 12, 13 | Pasir Panjang, Hong Leong Garden, Clementi New Town |
| 6 | 17 | High Street, Beach Road (part) |
| 7 | 18, 19 | Middle Road, Golden Mile |
| 8 | 20, 21 | Little India |
| 9 | 22, 23 | Orchard, Cairnhill, River Valley |
| 10 | 24, 25, 26, 27 | Ardmore, Bukit Timah, Holland Road, Tanglin |
| 11 | 28, 29, 30 | Watten Estate, Novena, Thomson |
| 12 | 31, 32, 33 | Balestier, Toa Payoh, Serangoon |
| 13 | 34, 35, 36, 37 | Macpherson, Braddell |
| 14 | 38, 39, 40, 41 | Geylang, Eunos |
| 15 | 42, 43, 44, 45 | Katong, Joo Chiat, Amber Road |
| 16 | 46, 47, 48 | Bedok, Upper East Coast, Eastwood, Kew Drive |
| 17 | 49, 50, 81 | Loyang, Changi |
| 18 | 51, 52 | Tampines, Pasir Ris |
| 19 | 53, 54, 55, 82 | Serangoon Garden, Hougang, Punggol |
| 20 | 56, 57 | Bishan, Ang Mo Kio |
| 21 | 58, 59 | Upper Bukit Timah, Clementi Park, Ulu Pandan |
| 22 | 60, 61, 62, 63, 64 | Jurong |
| 23 | 65, 66, 67, 68 | Hillview, Dairy Farm, Bukit Panjang, Choa Chu Kang |
| 24 | 69, 70, 71 | Lim Chu Kang, Tengah |
| 25 | 72, 73 | Kranji, Woodgrove |
| 26 | 77, 78 | Upper Thomson, Springleaf |
| 27 | 75, 76 | Yishun, Sembawang |
| 28 | 79, 80 | Seletar |
Source: Singpost
Masterplan & Long Term Plan
The Master Plan (MP) is the statutory land use plan which guides Singapore's development in the medium term over the next 10 to 15 years.
It is reviewed every five years and translates the broad long-term strategies of the Long-Term Plan (which illustrates the broad land use and planning strategies for Singapore, for the long-term) into detailed plans to guide the development of land and property. The Master Plan shows the permissible land use and density for developments in Singapore.
The MP can be useful tool to supplement your property sale/purchase analysis as it provides a guidance on the upcoming changes in the vicinity of a given property. It also provides other useful information such as the plot ratio of each land plot and the zoning.
The current MP2019 can be accessed at URA’s website.
The current Long Term Plan can be accessed at URA’s website.
URA Long Term Plan (2022). Source: URA
URA MP2019. Source: URA
Applicable Taxes for Sale and Purchase and Property Tax
The applicable taxes on Residential property purchase is one of the key consideration for property buyers as the amount payable can be rather considerable.
For any property purchase, buyer will need to pay a Buyer Stamp Duty (BSD). For 2nd and subsequent property purchase (and 1st property purchase for Permanent Residents, Foreigners and Corporate Entities) buyers will need to pay an extra stamp duty called the Additional Buyer Seller Stamp Duty (ABSD).
When selling a Residential property within a stipulated time frame (Within the 1st to 3rd year), property owners will also need to pay a Seller Stamp Duty (SSD).
The applicable rates are shown below:
Buyer Stamp Duty
Residential Properties
1st $180k: 1% / Next $180K: 2% / Next $640K: 3% / Next $500K: 4% / Next $1,5mil: 5% / Above $3M: 6%
Quick Formula
Property below $1M, Purchase Price x 3% - $5400
(Latest change on 15 Feb 2023 refer to IRAS for more info)
Commercial & Industrial Properties
1st $180k: 1% / Next $180K: 2% / Thereafter: 3%
Quick Formula
Purchase Price x 3% - $5400
Additional Buyer Stamp Duty
| ADDITIONAL BUYER STAMP DUTY (ABSD) | |||
|---|---|---|---|
| 1st Purchase | 2nd Purchase | 3rd Purchase | |
| Singaporean | N.A. | 20% | 30% |
| PR | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Corporate Entity | 65% | 65% | 65% |
ABSD (Trust): 65%. For Remission of the ABSD (Trust) refer to IRAS.
Implemented on 8 May 2022 (Press release by MOF).
Latest cooling measure on 26 Apr 2023 (Press release by MND, MOF, MAS)
Seller Stamp Duty
Residential Properties
12% - 1st year / 8% - 2nd year / 4% - 3rd year from signing of S&P
Industrial Properties
15% - 1st year / 10% - 2nd year / 5% - 3rd year from signing of S&P
For more information about Stamp Duties, you may contact us or refer to the IRAS website.
Property Tax
Property tax is levied on properties in Singapore by the Inland Revenue Authority of Singapore (IRAS) as part of the revenue collection needed for nation building.
There are 2 main categories of tax for residential properties:
Owner Occupier
Non-Owner Occupier.
The tax rates are based on the Annual Value (AV) of the property and a tax rate applicable. Generally Non-Owner Occupier taxes are higher than Owner Occupier taxes.
For more information about Property Taxes, you may contact us or visit the IRAS website.
Financing
Purchasing a private property could easily be one of the biggest ticket item in anyone’s life. While it is possible to purchase a property with no financing, it is more common for buyers to purchase a private property with a bank loan.
The amount of loan that can be secured depends on 3 main factors:
Loan-to-valuation (LTV)
Total Debt Servicing Ratio (TDSR)
Income & Age
To compute the total available financing available, banks use a Medium-Term Rate Floor of 4% per annum (as of 29 Sep 2022).
There are also other ways to vary or increase the amount of loan granted, such as using pledged assets (such as a Fixed Deposit) to secure the loan.
Mortgage Packages
The mortgage packages available includes both fixed rates as well as floating rates. Floating rate packages are generally pegged to the Singapore Overnight Rate Average or SORA (replacing the the SIBOR or SOR rates which were used in the earlier days, to find out more about the differences between the rates, see the table below). Whether to take up a fixed rate package or a floating rate package would depend on an individuals’ risk profile as well as current economic environment.
Find out more about the current mortgage packages from us now.
Source: The Association of Banks Singapore
Real Estate Transactions
Sale and Purchase
A private property transaction is unlike the typical goods and services that we are familiar with. Every property is unique and no two properties are the same. Being a multi-faceted product, it can be taxing for an individual to learn all about what to look out for in a property.
A property is also a large ticket item that is closely related to the needs of an individual/family. With significant stamp duties and other irreversible costs involved, it is prudent to make sure that each transaction is done right and right for the first time.
Therefore, is it recommended for property buyers/seller to engage a real estate professional to market/transact their properties. The right real estate professional will be acting in the best interest of his/her clients and helping that ensure that whole journey is smooth, hassle-free and pleasant.
Rental
It is important for property investors to ensure that their investment home is well taken care of and that the apartment is occupied by legitimate tenants during the tenancy period.
Find out more about xprop services.
See our quick guide for property sellers and buyers
