The Definitive Guide to Buying Property in Singapore (2025)

Singapore's property market continues to be a cornerstone of wealth building and stability for residents, with homeownership rates exceeding 90%. As property prices continue their upward trajectory in 2025, with private property forecasted to rise by 4-7%, understanding the nuances of property purchase has never been more critical.

At Homejourney, we've created this comprehensive guide to navigate you through every step of buying property in Singapore, whether you're a first-time HDB buyer, upgrading to private property, or an investor looking to capitalize on market opportunities.

This guide reflects the latest market conditions, regulatory changes, and financing options available as of May 2025. Our Homejourney property experts have analyzed current trends, compiled essential data, and provided actionable insights to ensure your property purchase journey is safe, informed, and successful.

Table of Contents

• Eligibility Requirements for Property Purchase
• Understanding Property Types in Singapore
• Financial Planning and Budgeting
• Property Search and Evaluation
• Financing Options and Loan Considerations
• Legal Process and Documentation
• Taxes and Additional Fees
• Best Locations to Buy Property in 2025
• Negotiation Strategies and Offer Submission
• Completion and Key Collection
• Downloadable Resources
• Frequently Asked Questions

Eligibility Requirements for Property Purchase

Understanding your eligibility is the first crucial step in your property buying journey. Singapore has specific requirements based on citizenship status and property type.

For Singapore Citizens

As a Singapore Citizen, you enjoy the most comprehensive property ownership rights:

• Eligible to purchase HDB flats (new or resale)
• Can buy Executive Condominiums (both new and resale)
• Allowed to purchase all types of private properties
• Access to housing grants and subsidies from the government

For Permanent Residents (PRs)

Permanent Residents have slightly more restricted options:

• Cannot purchase new HDB flats directly from HDB
• Can buy resale HDB flats with certain restrictions
• Eligible to purchase Executive Condominiums that are at least 5 years old
• Can buy private properties without restrictions
• Subject to Additional Buyer's Stamp Duty (ABSD) of 5% on first property

For Foreigners

Foreign buyers face the most restrictions:

• Cannot purchase HDB properties (new or resale)
• Cannot purchase Executive Condominiums
• Can purchase private condominiums and apartments
• Require government approval to buy landed properties
• Subject to 60% Additional Buyer's Stamp Duty (ABSD)

"At Homejourney, we verify all eligibility criteria to ensure buyers only view properties they're eligible to purchase, saving time and preventing disappointment," explains our Homejourney Property Experts.

Understanding Property Types in Singapore

Singapore's property market offers diverse options catering to different needs and budgets. Understanding the characteristics of each property type is essential for making an informed decision.

Public Housing (HDB)

Housing & Development Board (HDB) flats are the most common housing type in Singapore, housing over 80% of the resident population. HDB flats come in various types:

• 2-Room Flexi: 36-45 sqm, suitable for singles or small families
• 3-Room: 60-65 sqm, popular among young couples
• 4-Room: 90-100 sqm, ideal for families with children
• 5-Room: 110-120 sqm, spacious option for larger families
• Executive: 130-150 sqm, largest HDB option with additional space

HDB flats can be purchased either directly from HDB (Build-To-Order or Sale of Balance Flats) or through the resale market. There must be at least one Singapore Citizen in the purchasing household, and various eligibility schemes exist depending on your circumstances.

Executive Condominiums (ECs)

Executive Condominiums represent a hybrid between public and private housing, offering condominium facilities at a more affordable price point. Key features include:

• Initially sold only to eligible Singaporeans and PRs
• Subject to HDB regulations for the first 5 years
• Can be sold to PRs after 5 years
• Fully privatized after 10 years (can be sold to foreigners)
• Come with full condominium facilities (swimming pools, gyms, etc.)

Private Residential Properties

Private properties offer greater freedom in terms of ownership and design but come at premium prices:

Condominiums and Apartments

• Range from boutique developments (fewer than 50 units) to mega-developments (1,000+ units)
• Offer extensive facilities including swimming pools, gyms, BBQ pits, and security
• Available in various configurations from studios to penthouses
• Can be purchased by foreigners without restrictions

Landed Properties

• Terrace Houses: Sharing walls with neighboring units
• Semi-Detached Houses: Sharing one wall with a neighboring unit
• Bungalows: Standalone houses with land on all sides
• Good Class Bungalows: Premium category with minimum land size of 1,400 sqm

Foreigners require special approval from the Singapore Land Authority to purchase landed properties, except in designated areas like Sentosa Cove.

Financial Planning and Budgeting

Proper financial planning is crucial before embarking on your property purchase journey. Understanding your budget constraints and financial commitments will help you make realistic property choices.

Determining Your Budget

Before starting your property search, calculate how much you can realistically afford:

• Total Debt Servicing Ratio (TDSR): Your monthly debt obligations (including your potential mortgage) cannot exceed 55% of your gross monthly income
• Mortgage Servicing Ratio (MSR): For HDB flats and ECs, your monthly mortgage payment cannot exceed 30% of your gross monthly income
• Cash reserves: Beyond the down payment, ensure you have sufficient savings for emergencies

"Many buyers focus solely on the purchase price but overlook the total cost of ownership," caution Homejourney Property Experts. "Always factor in recurring costs like property tax, maintenance fees, and potential renovation expenses."

Upfront Costs

Be prepared for these initial expenses when purchasing property: