Buying a private condominium in Singapore, especially in the city, is a major financial commitment. Beyond the headline price tag of S$2.8 million, buyers must factor in additional costs such as stamp duties, legal fees, and cash requirements. In this guide, we’ll break down the true financial outlay step by step, assuming the buyer is a Singapore Citizen purchasing a first residential property.
1. Purchase Price
- Condo Unit Price: S$2,800,000
This is the agreed-upon price between buyer and seller (or developer if it’s a new launch).
2. Buyer’s Stamp Duty (BSD)
The Buyer’s Stamp Duty is a mandatory tax on property purchases. As of 2023, the BSD for residential properties is calculated as follows:
Calculation for S$2.8M property:
- 1% of S$180,000 = S$1,800
- 2% of S$180,000 = S$3,600
- 3% of S$640,000 = S$19,200
- 4% of S$500,000 = S$20,000
- 5% of S$1,300,000 = S$65,000
- Total BSD = S$109,600
If this is a second property, Additional Buyer’s Stamp Duty (ABSD) applies (20% for Singapore Citizens, 30% for PRs, 60% for foreigners as of 2023), which would significantly increase the upfront cost.
3. Loan & Cash/CPF Requirements
Assuming the buyer takes a bank loan and is below 65 years old with no outstanding housing loans:
- Maximum Loan-to-Value (LTV): 75%
- Loan Amount: 75% × S$2,800,000 = S$2,100,000
- Downpayment Required: 25% = S$700,000
- At least 5% in cash = S$140,000
- Remaining 20% can be paid via CPF OA or cash = S$560,000
4. Legal Fees
Engaging a conveyancing lawyer is required. Legal fees typically range S$2,500 – S$3,500.
5. Miscellaneous Costs
- Valuation Fee (if resale): S$500 – S$1,000
- Agent’s Commission: Usually paid by seller for resale condos, but for buyers engaging an agent for new launches, there is typically no commission.
6. Monthly Loan Repayment (Illustration)
Assume:
- Loan amount: S$2,100,000
- Loan tenure: 30 years
- Interest rate: 2% p.a.
Estimated monthly repayment = ~S$7,762
7. Summary of Initial Outlay
| Item | Amount (S$) |
|---|---|
| Downpayment (25%) | 700,000 |
| Buyer’s Stamp Duty | 109,600 |
| Legal Fees & Misc | ~3,500 |
| Total Upfront Outlay | ~813,100 |
Excludes ABSD (if applicable) and ongoing costs such as property tax, MCST fees, and loan repayments.
Final Thoughts
For a S$2.8 million condo purchase in the city, a first-home Singaporean buyer should be prepared to set aside around S$813,000 upfront (cash + CPF), with ongoing monthly repayments of about S$7,762 if taking a 30-year loan at 2% interest.
For buyers with existing property holdings or foreigners, the outlay could be much higher due to ABSD. Hence, financial planning and professional guidance are essential before committing to a big-ticket purchase.
📞 Let’s have a chat. I’ll walk you through the numbers, the available city condos within your budget, and help you secure the best deal.
👉 Reach out to Elaine at WhatsApp +65 93838696 today for a personalised property consultation and take the first step towards owning your S$2.8M city home.
