My Singapore Property Purchase Journey (Resale Condo Edition)
A Data-Driven, Step-by-Step Guide to Navigating the Singapore Resale Condo Journey — from Budgeting and Valuation to Negotiation and Completion
Buying a home in Singapore is equal parts data exercise, emotional commitment, and an administrative obstacle course. This post documents my experience purchasing a resale condominium — from budgeting and deal sourcing to valuation, negotiation, and completion. The goal is to make the process less mysterious for anyone planning a similar journey.
1. Typical Milestones
The resale-condo journey can be divided into three major milestones:
(a) Budgeting and Affordability – What can I truly afford?
(b) Property Deal Sourcing – What do I actually want, and what is it worth?
(c) Making a Purchase – How do I manage the legal process and cash flow?
Thinking in these stages keeps the process structured and grounded in data rather than emotion.
(a) Budgeting and Affordability
The first step is to understand that a property’s cost goes far beyond the price tag. Buying a condo includes stamp duties, legal fees, and sometimes renovation costs — some payable via CPF, others strictly in cash. Knowing these distinctions early prevents liquidity shocks.
Equally critical is finding out what the bank thinks you can afford, not what you hope to. Getting an In-Principle Approval (IPA) from several banks translates your income, debt, and age into an actual loan ceiling. It’s the single number that defines your real search boundary.
(b) Property Deal Sourcing
Once your budget is clear, define what you need versus what you merely want. Listing platforms can make every condo look irresistible; your written criteria filter fantasy from reality.
Data keeps emotion in check. Compare recent transactions by PSF, lease start year, layout, and noise exposure. Look for fair value, not just pretty interiors.
(c) Making a Purchase
Finally, understand the timeline of legal steps and cash outflows. Each stage — option fee, exercise fee, stamp duties, and completion — happens on fixed dates. Planning this sequence ensures you always have funds ready when needed.
2. Budgeting and Affordability
Date: 2025-10. Numbers may be outdated later.
Property ownership is a sequence of financial commitments that extends long after key collection. I classify them as acquisition, holding, and exit costs.
Building a simple Excel sheet helps you see the big picture — what can be paid by CPF, what needs cash, and when payments fall due. It also lets you test different price or loan scenarios.
Acquisition Costs – Getting the Keys
Purchase Price & Downpayment. At least 25 % of the purchase price must come from your own funds (5 % in cash, 20 % in CPF or cash).
Buyer’s Stamp Duty (BSD). Progressive tax on the higher of price or valuation.
Additional Buyer’s Stamp Duty (ABSD). Applies to foreign or multiple-property buyers.
Legal and Administrative Fees. Lawyer conveyancing, valuation reports, and miscellaneous filings.
Initial Capital Expenditure. Renovation, furnishing, and minor repairs — often 5–10 % of price.
An In-Principle Approval (IPA) anchors your expectations. It defines your borrowing limit and monthly repayment under Singapore’s Total Debt Servicing Ratio (TDSR), which caps total monthly debt at 55 % of gross income.
Holding Costs – The Price of Ownership
Financing Costs. Loan repayments vary with interest rates. Even a 0.5 % change can shift cash flow noticeably.
MCST Fees. Management Corporation Strata Title fees fund common-area maintenance; these vary by facilities and unit size.
Property Tax. Based on annual value and owner-occupation status; higher for investment properties.
Maintenance & Insurance. Routine servicing, repairs, and both fire and contents insurance.
Exit Costs – When You Sell or Refinance
Seller’s Stamp Duty (SSD). Charged if you sell within four years; rates fall from 16 % to zero.
Agent Commission. Typically 2 % + GST, negotiable for high-value units.
Legal Fees & Loan Penalties. Cover conveyancing for sale and any early-redemption fees.
3. Property Deal Sourcing
Where to Find Listings
The most active marketplaces are PropertyGuru and 99.co — good for browsing and gauging seller expectations.
For data-driven searches, RealSmart.sg and EdgeProp.sg add analytical tools:
RealSmart lets you filter projects by tenure, MRT proximity, and price trends. ( I like their map view)
EdgeProp visualises transaction charts, rental yields, and floor plans.
For deeper context:
URA SPACE reveals future zoning and land use.
OneMap School Query checks 1 km school distances.
OpenStreetMap shows small-scale details like paths and noise sources often missing from Google Maps.
Understanding Your Demand
Write down your must-haves and good-to-haves — proximity to work, schools, transport, or food; age of property; unblocked view; tenure; and affordability. Once you define them, you’ll realise only a handful of properties truly qualify. That’s a feature, not a problem.
Be patient: the property market is illiquid. Treat the process as discovery — each viewing teaches you more about your real preferences and local pricing.
Valuation Approaches
There’s no single right way to value a property, but triangulating from multiple methods gives confidence.
1. Comparative Method
Use recent transactions of comparable units. Control for tenure, remaining lease, floor level, and transaction recency.
If data is sparse, look at neighbouring projects, adjusting for age, distance to MRT, and facilities. For enthusiasts, a hedonic pricing model — regression analysis on past transactions — can quantify these adjustments. For most buyers, eyeballing a dozen recent transactions within the same development is practical and reliable.
2. Seller-Cost Perspective
Estimate what return the seller might expect. Take the seller’s purchase price and compound it by the URA Private Residential Property Price Index to approximate a fair “cost-plus” value. If the asking price far exceeds that benchmark without clear upgrades or market shifts, negotiate.
3. Discounted Cash-Flow Perspective
Value the property as an income-producing asset: calculate the present value of future real rental yields (adjusted for inflation) over the remaining lease, discounted by your required rate of return — roughly the long-term property-index growth minus inflation. This lens helps investors compare property returns to other asset classes.
By comparing these three perspectives, you get a realistic fair-value range, rather than relying solely on agents’ optimism.
4. Making a Purchase
Once you’ve found your property and agreed on terms, the process turns procedural — a series of payments and signatures. Here’s the typical flow.
Step 1: Property Inspection
Hire a professional inspector before committing. The report forms your basis for negotiating repairs or price adjustments, which must be resolved before the OTP is signed.
Step 2: Secure Bank Support (Part 1 – IPA)
Apply for In-Principle Approvals (IPA) with several banks. This pre-qualifies your loan amount and gives leverage when comparing rates.
Step 3: Negotiate Terms with Seller
Finalise every key term before signing the Option to Purchase (OTP) — price, repair obligations, completion date (usually 8–12 weeks post-exercise), option period (14–21 days), and also the handover date. Once signed, these are binding.
Step 4: Sign the Option to Purchase (OTP)
Pay a 1 % option fee to reserve the unit. You now have the right — but not yet the obligation — to buy within the option window.
Step 5: Engage a Lawyer
Engage a conveyancing lawyer immediately after signing. They’ll conduct title checks, lodge a caveat, and coordinate with both bank and seller.
Step 6: Secure Bank Support (Part 2 – Loan Application)
Submit your formal loan application. After valuation, the bank issues a Letter of Offer detailing rate type, lock-in, and prepayment clauses. Review carefully.
Step 7: Exercise the OTP
Once financing is confirmed, exercise the OTP by paying the remaining 4 % deposit and signing the agreement. This legally binds the purchase.
Step 8: Pay Stamp Duties
Within 14 days of exercising, pay BSD and, if applicable, ABSD. Your lawyer typically manages the IRAS submission.
Step 9: Conduct Final Walkthrough (Pre-Completion)
Before completion, do a final inspection to ensure all agreed repairs are completed and the unit’s condition matches what was promised.
Step 10: Completion and Final Payment
Roughly 8–12 weeks after exercise, the transaction completes. You’ll pay the remaining 20 % downpayment, and the bank disburses the loan to the seller. Ownership transfers when your lawyer receives the keys.
Step 11: Post-Completion Tasks
Set up MCST billing, arrange home insurance, and confirm property-tax payment schedules.
The full process typically spans three to four months from offer to key collection. Keeping a detailed spreadsheet of milestones, payment amounts, and due dates makes the experience smooth and predictable.
5. Other Topics Worth Your Attention
Layout and Efficiency
Two units with identical floor areas can feel entirely different. Prioritise usable layout over raw square footage. Efficient layouts minimise corridors, have proper separation between bedrooms and living areas, and ensure natural cross-ventilation. When viewing, bring a floor plan and imagine furniture placement; awkward corners often reveal inefficient design.
Harmonisation of Gross Floor Area (GFA)
Starting September 2024, URA introduced harmonised definitions of floor area across developments. Under this rule, certain spaces like air-conditioner ledges, planter boxes, and other non-liveable areas are no longer counted in the strata area used for sale.
This means new projects launched under the harmonised guidelines will show smaller strata areas compared to older ones, even if the internal usable space is similar. Buyers should therefore compare layout efficiency and liveable area, not just the headline PSF. A newer 900 sq ft unit under harmonisation may feel similar in size to a 950 sq ft pre-harmonisation unit.
Mortgage Rates
When taking a mortgage, decide between fixed and floating rates. Fixed provides stability during the lock-in period; floating follows SORA and moves with market conditions. Your choice depends on your risk tolerance and cash-flow flexibility.
Home Insurance and Maintenance
After completion, secure both fire insurance (mandatory for mortgaged properties) and home-contents insurance. Also budget for recurring MCST fees and an emergency fund for unexpected repairs or rate hikes.
Renovation and Timing
Plan renovation early. Obtain several quotes and prioritise functional work before cosmetic upgrades. Align renovation timelines with key collection to avoid paying rent and mortgage simultaneously.
6. Tricks and Tips
A few practical lessons made a real difference during my own purchase.
1. Clarify who you’re dealing with.
Sometimes the “agent” is actually the seller posing as their own representative. Always open with: “Are you the agent or the seller?” Transparency changes the tone immediately.
2. Understand the commission structure.
Without a buyer’s agent, there’s room to negotiate because the seller’s side saves that 1 % commission. The seller’s agent can’t rebate you directly, but the price can often be adjusted if the seller agrees to share the savings. Think of the deal as a multi-party negotiation — not just buyer versus seller.
3. Negotiate patiently.
Seller agents are skilled at extracting your “best offer” without reducing theirs. Increase bids slowly, and let silence work for you. Time is leverage.
4. Negotiate beyond price.
Completion date, extension of stay, inclusion of furniture, or electronics can all be part of the negotiation.
5. Study sunlight.
When viewing, you only see a snapshot of the year. Check the sun’s path to understand how light and heat will shift through the seasons.
6. Visit multiple times.
View the property at different hours — before work, after work, and near school start if close to a school. Observe noise, traffic, and lighting. Visualise daily life before committing.
7. Compare mortgage rates
The initial quote is rarely the lowest rate. Obtain several offers from different banks, then negotiate with alternative banks to encourage your primary bank to match the best offer. In addition to the mortgage rate, consider negotiating other terms such as the lock-in period, free conversion, and additional perks.
7. Reflections
Looking back, buying a resale condo in Singapore taught me the value of patience, preparation, and perspective.
The process rewards those who do their homework: understanding financing rules, using data to spot fair value, and planning cash flow down to the week. But it also demands intuition — knowing when a property “feels right,” and when to walk away.
A property purchase isn’t only a financial decision; it’s a lifestyle and time-management decision wrapped in one. Balancing analysis with lived imagination — picturing how you’ll actually inhabit the space — turns a stressful transaction into a meaningful one.
If there’s one lesson I’d emphasise, it’s this: clarity reduces anxiety. Know your numbers, understand the timeline, and negotiate at your own pace. With that, the process becomes less of a gamble and more of a disciplined journey toward a home that truly fits.