How to decide what type of property in Singapore you should buy

How to decide what type of property in Singapore you should buy

This article first appeared on The New Savvy's Which Real Estate in Singapore Should You Purchase

Buying property is a long term investment. When you're thinking of diving into real estate investment, it's better gather as much information on it as possible.

Perks of investing in Singapore's real estate

Just like in any part of the world, having a private property is a good decision as there are many benefits. For instance, the property cycle in Singapore over the last years indicates that there is a steady rise in real estate's value. This could bring in a nice profit after a few years of acquisition.

Alternatively, real estate investment can be a source of passive income. You can purchase a property and rent it out.

Type of real estate in Singapore

In real estate, you get to choose from many options. To know how each type of real estate differs from another, read ahead!

1. Build-To-Order (BTO)

BTO comes under the Housing and Development Board (HDB), Singapore. It's a responsive system, which allows Singaporean citizens to apply for flats at a location of their choice. Once 65-70 per cent of the flats are booked, the construction work begins. After the construction is completed, you will have to wait for some time before you can move in.

2. Design, Build, and Sell Scheme (DBSS)

Design, Build, and Sell Scheme (DBSS) is an incentive of the HDB system. DBSS is public housing scheme developed by private developers. The DBSS scheme offers more comfortable designs and better locations.

You can find DBSS projects in Tampines, Ang Mo Kio, and Bishan.

3. Executive Condominiums

Executive Condos (ECs) caters to young graduates and professionals who wants a property in between public and private housing. ECs are comparable in design and facilities to private condominiums as they are developed and sold by the private developers.

One main difference of ECs from BTO properties is, from the 6th to 10th year, EC's can be re-sold to those who are permanent residents. From the 11th year onwards, ECs will be open for both foreign individuals and locals.

What should you look for in each category of Singapore real estate?

When it comes to investing in real estate, it's a good idea to look at different factors. You should ask whether:

- You'll have easy access to MRT stations, schools, and other essential facilities.

- You can resell the property easily.

- You can afford it.

Costs of real estate in Singapore

What are the costs involved in buying a property in Singapore?

First, you have to check your stamp duty rate. Based on the market value of the property, you can compute for your Buyer's Stamp Duty (BSD).

Let's assume that you purchased a property for $2.5 million. What will be its BSD? You can compute the BSD by adding 1 per cent of the first $180,000, the 2 per cent of the second $180,000, and 3 per cent of the remainder.

Given this scenario, you'll be paying around $69,600 in lieu of the BSD alone. Also, you may want to take a look at the Additional Buyer's Stamp Duty charged on residential properties.

Before looking at the stamp duty rate, don't forget to check lawyer's fee.

Only after considering all of these additional expenses, you can have the true estimate of a property's price. Then, you can decide which type of property will be your best choice.


The New Savvy is the definitive financial and career guide that empowers women through meaningful and relevant content.

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