Singapore Property Glossary

ABSD Explained: Additional Buyer's Stamp Duty Rates Additional Buyer's Stamp Duty (ABSD) is an extra tax applied on top of BSD for certain buyer profiles. Singapore Citizens buying a second property pay 20%, Permanent Residents buying their first pr... Annual Value (AV) and Property Tax in Singapore Annual Value (AV) is the estimated gross annual rent a property can reasonably command if it were rented out, as assessed by IRAS. AV is used to determine property tax payable and is reviewed annua... Bala's Table: How Leasehold Values Are Calculated Bala's Table is a leasehold valuation reference that estimates what a property's remaining lease is worth as a percentage of its freehold value. It shows that lease value does not decay in a straig... Bank Valuation and How It Shapes Your Loan The bank valuation is a bank-appointed valuer's assessment of a property's market worth, used to size your loan. Your maximum loan is the LTV limit applied to the lower of the purchase price or the... Bridging Loans for Property Upgraders A bridging loan is a short-term loan (typically up to 6 months) that covers the funding gap when you buy a new home before receiving the sale proceeds of your existing one. It lets upgraders pay th... BSD Explained: Buyer's Stamp Duty Rates in Singapore Buyer's Stamp Duty (BSD) is a progressive tax on all property purchases in Singapore. Rates range from 1% on the first $180,000 to 6% on value above $3,000,000. BSD applies to every buyer regardles... BUC: Buying a Property Under Construction BUC stands for Building Under Construction — a property, usually a new launch condo, that has been sold but not yet completed (pre-TOP). BUC purchases follow the Progressive Payment Scheme, with ... Capital Gains and Appreciation: How Values Grow The estimated annual increase in property value, expressed as a percentage. Historical Singapore condo appreciation has averaged around 2-4% per year over the long term. Cash-on-Cash Return: Measuring Your Cash Investment Cash-on-Cash Return is the annual pre-tax cash flow divided by the total cash invested (primarily your down payment and acquisition costs). It measures the return on your actual cash outlay rather ... Caveat and Title Search: Protecting Your Property Purchase A caveat is a legal notice lodged with the Singapore Land Authority to protect a buyer's interest in a property. Once lodged, it alerts any third party that the buyer has a claim on the property, p... CCR, RCR, OCR: Singapore's Market Segments Core Central Region (CCR) covers Singapore's prime districts including Orchard, Marina Bay, and Districts 9, 10, 11. CCR properties command the highest prices and are popular with investors, high-n... Cluster Housing and Strata Landed Homes A cluster house is a landed home (terrace, semi-detached, or bungalow) that sits within a strata development, sharing condo-style communal facilities such as a pool, gym, and 24-hour security manag... COV: Cash Over Valuation for HDB Resale Cash Over Valuation (COV) is the difference between the agreed purchase price and the HDB valuation of the flat. This amount must be paid in cash — CPF cannot be used. COV reflects the premium a ... CPF Accrued Interest: The Hidden Cost of Using CPF CPF accrued interest is the interest that would have been earned on CPF funds used for property purchase, had the money remained in the CPF OA (currently 2.5% per annum). This amount must be refund... CPF OA for Property: Using CPF to Buy a Home CPF Ordinary Account (OA) savings can be used to purchase residential property in Singapore, subject to withdrawal limits. For private property, CPF usage is capped at the Valuation Limit (VL). For... Decoupling: Restructuring Ownership to Save ABSD Decoupling is the restructuring of a jointly owned property so that one co-owner buys out the other's share, leaving a single owner. This frees the exiting party to be a "first-time" buyer again an... DLP: Defects Liability Period for New Condos The Defects Liability Period (DLP) is typically 12 months from the date of vacant possession (TOP/key collection). During this period, the developer is obligated to repair any defects in the unit a... DSCR: Debt Service Coverage Ratio for Rental Properties Debt Service Coverage Ratio (DSCR) is the monthly rental income divided by the monthly mortgage payment. A DSCR above 1.0 means your rental income covers the mortgage, while a ratio below 1.0 means... Dual-Key Units: Two Homes in One Property A dual-key unit is a single strata property with two separate, self-contained living spaces (typically a main unit plus a studio or one-bedroom sub-unit) accessed through a shared foyer, but held u... EC Explained: Executive Condominium Rules and Eligibility An Executive Condominium (EC) is a hybrid public-private housing type built and sold by private developers but subject to HDB eligibility rules for the first buyers. ECs come with full condo facili... EHG: Enhanced CPF Housing Grant Explained The Enhanced CPF Housing Grant (EHG) is a housing subsidy for eligible first-time HDB buyers, replacing the older Additional and Special Housing Grants. As of 2024 it offers up to $120,000 for fami... EIP and SPR Quota: HDB Ethnic Integration Policy The Ethnic Integration Policy (EIP) sets ethnic quotas for each HDB block and neighbourhood (Chinese, Malay, Indian/Other) to preserve Singapore's multi-racial social mix. A separate SPR quota limi... En Bloc and Collective Sale: How It Works An en bloc sale (collective sale) occurs when owners of at least 80% (for developments over 10 years old) or 90% (under 10 years) of strata area and share value agree to sell the entire development... Fixed vs Floating Home Loan Rates in Singapore A fixed-rate home loan locks your interest rate for a set period (commonly 1–3 years), so your monthly repayment stays constant regardless of market movements. It offers predictability and protec... Freehold vs Leasehold: Tenure Types Compared Freehold tenure means the owner holds the property in perpetuity with no lease expiry. Freehold properties generally command a 10-20% premium over 99-year leasehold properties but are increasingly ... GCB: Good Class Bungalow in Singapore Good Class Bungalows (GCBs) are the most prestigious category of landed property in Singapore, located in 39 gazetted GCB Areas. They must have a minimum land area of 1,400 sqm and a maximum of 2 s... GFA and Plot Ratio: Development Density Explained Gross Floor Area (GFA) is the total area of all covered floor space in a building, measured to the outer edge of external walls. GFA determines the maximum buildable area under URA's planning regul... GFA Harmonisation: Why New Condo Units Got Smaller GFA (Gross Floor Area) harmonisation refers to URA/BCA rule changes that took effect on 1 June 2023, standardising how strata floor area is computed. Air-con ledges and most private enclosed spaces... Gross Yield vs Net Yield: Property Returns Explained Gross Yield is the annual rental income divided by the property value, expressed as a percentage. It provides a quick snapshot of rental return but does not account for expenses such as maintenance... HDB Maisonette: The Double-Storey Flat An HDB maisonette is a double-storey flat with bedrooms upstairs and living areas downstairs, connected by an internal staircase. Executive Maisonettes (EMs) were among the largest HDB flats ever b... HDB Resale Levy for Second-Time Buyers The HDB resale levy is a payment second-time buyers make when they buy a second subsidised HDB flat or EC, to reduce the housing subsidy enjoyed twice. The amount is a fixed sum based on the first ... HFE Letter: HDB Flat Eligibility for Financing The HDB Flat Eligibility (HFE) letter is a mandatory document for all HDB flat buyers (BTO and resale). It confirms your eligibility to purchase, the amount of CPF housing grants you qualify for, a... HIP and SERS: HDB Upgrading Programmes Explained Home Improvement Programme (HIP) is an HDB upgrading programme that addresses common maintenance issues in ageing flats, including repairs to spalling concrete, ceiling leaks, toilet upgrades, and ... IPA: In-Principle Approval for Your Home Loan An In-Principle Approval (IPA), sometimes called Approval-in-Principle (AIP), is a non-binding indication from a bank of how much home loan you qualify for, based on your income, existing debts, an... IRR: Internal Rate of Return for Property Investors Internal Rate of Return (IRR) is the annualised return that accounts for both rental income and capital appreciation over the entire holding period. It considers the timing of cash flows, making it... LDAU: Land Dealings Approval for Foreign Buyers The Land Dealings Approval Unit (LDAU) under the Singapore Land Authority reviews applications from foreigners seeking to purchase landed residential property. Approval is granted only in exception... Lease Decay: How 99-Year Leasehold Values Decline Lease Decay refers to how a 99-year leasehold property loses value as the remaining lease shortens. The decline is not linear — values hold relatively well above 60 years, but drop more sharply b... LTV Ratio: Loan-to-Value Limits in Singapore Loan-to-Value (LTV) ratio is the maximum percentage of a property's value that a bank will lend. In Singapore, the maximum LTV is 75% for the first housing loan with no outstanding loans, 45% for t... MCST Explained: Condo Management and Strata Fees Management Corporation Strata Title (MCST) is the legal body formed by all unit owners in a strata-titled development to manage and maintain the common property, including lobbies, lifts, pools, an... MOP: Minimum Occupation Period for HDB and EC Minimum Occupation Period (MOP) is the mandatory period (typically 5 years) during which HDB flat owners and EC owners must physically occupy the property before they can sell it on the open market... Moving Averages: Reading Property Price Trends A Moving Average smooths out short-term price fluctuations to reveal the underlying trend direction. ShiokNest uses moving averages on property price charts to help you distinguish between temporar... OTP Explained: Option to Purchase in Singapore The Option to Purchase (OTP) is a legally binding agreement giving the buyer the exclusive right to purchase a property within a fixed period (usually 14 days for private, 21 days for HDB). The buy... Progressive vs Deferred Payment: New Launch Options The Progressive Payment Scheme is the standard payment method for new launch properties in Singapore. Buyers pay in stages as construction reaches milestones: 10% at booking, 10% at foundation, 10%... Property Expense Ratio: Rental Costs and Deductions The percentage of gross rent set aside for vacancy periods, repairs, agent fees, and other recurring costs. A typical expense ratio is 10-20% of gross rental income. ROI Metrics: Total Return, Break-Even, Future Value Net profit (rental income + capital gain minus all costs) expressed as a percentage of the original purchase price. This is your overall ROI. S&P Agreement: Sale and Purchase Contract Explained The Sale and Purchase Agreement (S&P) is the main legal contract that governs a property transaction in Singapore. It sets out the purchase price, completion date, conditions, and obligations of bo... Shophouses: Singapore Conservation Property Explained A shophouse is a traditional two- to four-storey building — ground-floor commercial space with residential or office units above — many of which sit in URA conservation areas with strict facade... Singapore Cooling Measures: History and Current Rates Cooling measures are government policies designed to moderate the property market and prevent speculative bubbles. Key measures include ABSD rate hikes, TDSR/MSR borrowing limits, LTV ratio restric... SORA: Singapore Overnight Rate Average Explained The Singapore Overnight Rate Average (SORA) is the volume-weighted average rate of unsecured overnight interbank Singapore Dollar cash transactions, published by MAS. Since 2021 SORA has replaced S... SSD Explained: Seller's Stamp Duty and Holding Periods Seller's Stamp Duty (SSD) applies when you sell a property within 3 years of purchase. The rates are 12% if sold in the first year, 8% in the second year, and 4% in the third year. No SSD applies a... Standard, Plus, Prime: HDB's New Flat Classification From October 2024, new HDB Build-To-Order (BTO) flats are classified as Standard, Plus, or Prime instead of the old mature/non-mature estate labels. Standard flats form the bulk of supply with the ... Strata vs Non-Strata Property: Key Differences Strata-titled property gives the owner individual title to their unit plus a proportional share of common property. Most condos and apartments in Singapore are strata-titled, managed by an MCST. TDSR and MSR: Singapore's Borrowing Limits Total Debt Servicing Ratio (TDSR) is a framework that limits total monthly debt repayments (including the new mortgage) to 55% of gross monthly income. This prevents over-leveraging and applies to ... Tenancy Agreement and the Diplomatic Clause A Tenancy Agreement (TA) is the legal contract between landlord and tenant setting out rent, deposit, lease term, and the responsibilities of each party. In Singapore, tenants pay stamp duty on the... The 15-Month Wait-Out Period Explained The 15-month wait-out period is a cooling measure introduced on 30 September 2022. Private residential property owners (and ex-owners) below age 55 must wait 15 months after the legal completion of... TOP and CSC: When You Can Move Into Your New Home Temporary Occupation Permit (TOP) is issued by the Building and Construction Authority (BCA) when a new development meets minimum standards for occupation. It allows residents to move in while mino... What Is PSF? Price Per Square Foot Explained Price per Square Foot (PSF) is the unit price of a property divided by its floor area in square feet. It is the standard metric used to compare properties of different sizes on an apples-to-apples ...