Downpayment for a Condo in Singapore: What First-Time Buyers Need to Know (2025)

Why Are First-Time Buyers Choosing Condos?

Traditionally, most Singaporeans would start with an HDB BTO (Build-To-Order) flat and upgrade to a condominium later in life. However, this conventional route has changed for several reasons.

1. Delays in BTO Projects

The COVID-19 pandemic caused massive delays in BTO flat construction, with some projects being pushed back by a year or more due to supply chain disruptions and labor shortages. While HDB has since completed the last of the COVID-affected BTO projects in early 2025, many buyers grew impatient and opted for resale flats or even condominiums instead. Some even appealed to cancel their BTO applications due to the extended waiting times.

2. Ineligibility for BTO Flats

Not everyone qualifies for an HDB BTO flat. Factors such as citizenship, marital status, and income ceilings play a role in eligibility. If you fall outside these criteria, purchasing a condo may be your next best option.

3. Soaring Resale HDB Prices

Resale HDB prices have been on a relentless rise, now set to increase for the 23rd consecutive quarter by the end of 2025. Some flats have even crossed the million-dollar mark:

• July 2023: A 5-room resale flat in Toa Payoh sold for $1.42 million.
• January 2024: A Design, Build and Sell Scheme (DBSS) flat in Toa Payoh fetched $1.57 million.
• July 2024: A 5-room HDB unit at Margaret Drive set a new record at $1.73 million.

Given these skyrocketing prices, some buyers are reconsidering whether paying a premium for an HDB resale flat is worthwhile when they could invest in a private condominium instead.

4. Limited BTO Choices

If you apply for a BTO flat and get an opportunity to book a unit, rejecting the offer comes with penalties. Since 2023, first-time applicants who decline their booking chance lose their priority status for a year. If they reject a second time within that period, they are barred from applying for another BTO flat for an entire year.

With these restrictions, some buyers prefer the flexibility of the private property market.

How Much Is the Condo Downpayment for First-Timers?

If you’re looking at purchasing a condo, your downpayment will depend on several factors, including the Loan-to-Value (LTV) limit, minimum cash downpayment, and stamp duties.

For first-time buyers with no existing home loans, the LTV limit is 75% if your loan tenure is within 30 years and doesn’t extend past age 65. This means you’ll need to fork out 25% of the property price as a downpayment, which can be covered using cash or CPF.

Let’s assume you’re eyeing a modest condo priced at $800,000 in a suburban area. Here’s a breakdown of the downpayment and additional costs:

How Much Cash & CPF Do You Need for the Down Payment?

Fortunately, you can use CPF savings to finance a significant portion of your condo downpayment, reducing your cash outlay. The funds must come from your CPF Ordinary Account (OA).

In our $800,000 condo example:

• The total downpayment is $200,000 (25% of the property price).
• $40,000 (5%) must be paid in cash.
• The remaining $160,000 (20%) can be covered using CPF OA.

However, you’ll need to ensure you have sufficient savings in your CPF OA. If you earn $4,000 per month, it would take over 8 years to accumulate $160,000 in your OA. If your CPF savings fall short, you’ll need to pay more in cash.

Do You Need to Pay Stamp Duty in Cash?

Buyer’s Stamp Duty (BSD)

Regardless of whether you’re a first-time buyer, BSD is a mandatory cost for purchasing any residential property in Singapore. It follows a tiered rate system based on the property’s value:

• 1% on the first $180,000
• 2% on the next $180,000
• 3% on the next $640,000
• 4% on the remaining amount above $1 million

For an $800,000 condo, BSD amounts to $18,600.

Additional Buyer’s Stamp Duty (ABSD)

If you’re a Singapore citizen buying your first property, you are exempt from ABSD. However, PRs and foreigners are subject to additional costs:

• PRs: 5% ABSD ($40,000 for an $800,000 condo)
• Foreigners: 60% ABSD ($480,000 for an $800,000 condo)

BSD and ABSD must be paid in cash first before you can request a reimbursement from your CPF OA.