Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
The Full Cost Picture
Property transaction costs in Singapore fall into three categories: taxes and duties (paid to the government), professional fees (legal and valuation), and service costs (agent commission). For buyers, the total upfront cost is typically 3% to 6% of the purchase price on top of the agreed price — before accounting for ABSD, which can add a further 5% to 60% for second-property or foreign buyers.
This article covers costs for both buyers and sellers separately, then looks at the combined view for the most common transaction types.
Buyer Transaction Costs
1. Buyer’s Stamp Duty (BSD)
BSD is payable by the buyer on all Singapore property purchases. It is calculated on the higher of the purchase price or the market value of the property. BSD uses a marginal rate structure:
| Purchase Price Band | BSD Rate |
|---|---|
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Next $1,500,000 | 5% |
| Remainder above $3,000,000 | 6% |
For a $1,000,000 property, BSD = $1,800 + $3,600 + $19,200 + $15,000 = $39,600 (approximately 3.96% of purchase price).
2. Additional Buyer’s Stamp Duty (ABSD)
ABSD applies on top of BSD for certain categories of buyers. The rates as at 2026:
| Buyer Profile | 1st Property | 2nd Property | 3rd+ Property |
|---|---|---|---|
| Singapore Citizen (SC) | 0% | 20% | 30% |
| Singapore Permanent Resident (SPR) | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity (company) | 65% | 65% | 65% |
For a first-time SC buying a $1,000,000 property: ABSD = $0. For an SC buying a second property at $1,000,000: ABSD = $200,000, which must be paid within 14 days of exercising the OTP.
3. Legal Fees (Conveyancing)
Buyers must engage a Singapore-qualified conveyancing solicitor to handle the transfer of ownership. Legal fees are based on the purchase price and typically follow a scale fee structure:
| Purchase Price | Typical Buyer’s Legal Fees |
|---|---|
| $500,000 | $1,800 – $2,500 |
| $1,000,000 | $2,200 – $3,500 |
| $2,000,000 | $3,000 – $5,000 |
| $5,000,000+ | $5,000 – $10,000+ |
These fees are for standard freehold or 99-year leasehold transactions. HDB resale transactions are typically at the lower end of the scale. Disbursements (searches, CPF board fees, SLA registration fees) add approximately $500 – $1,200 on top.
4. Valuation Fee
Banks typically require an independent valuation of the property before approving a mortgage. The valuation fee is paid by the buyer:
- HDB resale flats: valuation is arranged by HDB; fee is absorbed
- Private property: $350 – $700 for standard condominiums; $800 – $1,500 for landed property
5. Option Fee and Exercise Fee
The option fee (paid when the OTP is granted) and exercise fee (paid when the OTP is exercised) are part of the purchase price, not additional costs — they are credited against the purchase price at completion. However, they must be in cash or cashier’s order and cannot come from CPF:
- HDB resale: option fee maximum $1,000; total option + exercise fee maximum $5,000
- Private resale: typically 1% option fee, 4% exercise fee = 5% total (on a $1,000,000 property: $50,000 in cash before completion)
6. Agent Commission (Buyer)
Buyer’s agent commission in Singapore is typically paid by the seller (co-broking), not the buyer. However, in some transactions — particularly new launches or transactions without co-broking — the buyer may pay their agent a co-broking fee. Confirm commission arrangements before signing any agent engagement letters.
Seller Transaction Costs
1. Seller’s Stamp Duty (SSD)
SSD applies when a property is sold within 4 years of purchase (for properties purchased on or after 27 April 2023):
| Holding Period | SSD Rate |
|---|---|
| Up to 1 year | 16% |
| Over 1 year, up to 2 years | 12% |
| Over 2 years, up to 3 years | 8% |
| Over 3 years, up to 4 years | 4% |
| Over 4 years | No SSD |
SSD is calculated on the higher of purchase price or market value at time of sale. For a property bought at $1,000,000 and sold after 18 months at $1,100,000: SSD = 12% × $1,100,000 = $132,000.
2. Agent Commission (Seller)
Seller’s agent commission is the largest out-of-pocket cost for most sellers. Market norms in 2026:
| Property Type | Typical Commission (Seller’s Agent) |
|---|---|
| HDB resale | 1% – 2% of sale price |
| Private residential (condo, landed) | 1% – 2% of sale price |
| Buyer’s co-broking (paid by seller to buyer’s agent) | 0.5% – 1% of sale price (if applicable) |
On a $1,000,000 private condo sale with 1% seller’s commission and 1% co-broking: total agent fees = $20,000 (2% of $1,000,000). These are paid from sale proceeds at completion.
3. Legal Fees (Seller)
Sellers also require a conveyancing solicitor. Seller’s legal fees are generally lower than buyer’s fees — typically $1,500 – $2,500 for standard residential transactions plus disbursements.
Combined Cost Example: First-Timer SC Buying a $1.2M Private Condo
| Cost Item | Amount |
|---|---|
| Purchase price | $1,200,000 |
| BSD (marginal rate on $1.2M) | $33,600 |
| ABSD (first SC purchase) | $0 |
| Legal fees (buyer) | $3,000 |
| Valuation fee | $500 |
| Agent commission (if any) | $0 (typically borne by seller) |
| Total acquisition cost | $1,237,100 |
For an SC buying a second property at $1,200,000: add $240,000 ABSD, making total acquisition cost $1,477,100 — a 23% premium over the headline price.
Cash Requirements at Completion
Not all transaction costs can be paid from CPF. The cash requirements at completion depend on the property type and loan type:
| Item | Can CPF Be Used? |
|---|---|
| Option fee (OTP) | No — cash only |
| Exercise fee (OTP) | No — cash only |
| BSD | Yes (from CPF OA, subject to withdrawal limits) |
| ABSD | No — cash only, within 14 days of OTP exercise |
| SSD (seller) | No — cash only (deducted from sale proceeds) |
| Legal fees | Yes (from CPF OA) |
| Downpayment (first 5%) | No — cash only for bank loans |
| Downpayment (remaining 20% for 75% LTV) | Yes (from CPF OA) |
Critical cash check: ABSD cannot be paid from CPF. An SC buying a $1,500,000 second property must have $300,000 in cash available within 14 days of OTP exercise. Agents who do not confirm this cash availability before the OTP is signed put their clients — and themselves — in a very difficult position.
Using LEVR for a Complete Cost Estimate
LEVR’s ABSD and Stamp Duty calculators give the tax cost instantly. To build a complete transaction cost estimate for a buyer:
- ABSD Calculator: Input buyer profile (SC/SPR/foreigner), number of existing properties, and purchase price. Get ABSD instantly.
- Stamp Duty Calculator: Get BSD on the purchase price in seconds.
- Add professional fees: Legal fees (use the scale above), valuation fee ($500 for condos), and agent commission (if any buyer’s fee applies).
- Cash vs CPF split: Flag which items require cash (option fee, ABSD, first 5% downpayment) vs which can come from CPF OA (BSD, legal fees, remaining downpayment).
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.