Singapore property glossary

152 terms every Singapore property buyer, first time home buyer and investor runs into, ABSD to Zoning, explained in plain English with a worked example where it helps. By Winfred Quek, CEA R073319H.

A

ABSD

ABSD, Additional Buyer's Stamp Duty, is a tax on top of BSD charged when a buyer acquires an additional residential property in Singapore. The rate...

ABSD remission

ABSD remission is a conditional refund of Additional Buyer's Stamp Duty already paid. The main route is the matrimonial home remission: a married couple...

Agent commission on a rental

Agent commission on a rental is the fee paid to a property agent for arranging a tenancy, typically expressed as a number of months of rent and payable by...

AIP / IPA

AIP and IPA both mean In Principle Approval, a bank's non binding indication of how much it will lend a buyer, based on documented income, existing debt...

Air Conditioner Ledge

The air conditioner ledge, often called the aircon ledge, is the small external space set aside on a unit's floor plan for the outdoor condensing units of...

Amortisation

Amortisation is how a mortgage is gradually paid off through equal monthly instalments over the loan tenure, split between interest and principal, with...

Annual Value

Annual Value, AV, is IRAS's estimate of the gross annual rent a property could fetch if let out, excluding furniture, furnishings and maintenance,...

B

Balance Units Chart

A balance units chart is the running list a developer or its agents publish showing which units in a new launch are still available for sale, updated as...

Balloting and queue number

Balloting is the computerized draw HDB runs after a BTO or Sale of Balance Flats application window closes, which assigns every applicant a queue number....

Bank valuation

A bank valuation is a lender commissioned assessment of a property's market worth, used to decide the maximum loan amount. A bank lends its Loan to Value...

Bay Window

A bay window is a window that projects outward from a room's external wall, usually with a low sill that can double as a seating ledge. Whether its area...

Breakeven point on a property

The breakeven point on a property is the price, or rent, at which you recover everything put in, purchase price, every cost of buying, and every holding...

Bridging loan

A bridging loan is short term financing that covers the cash gap when a buyer's new property completes before their existing property is sold. Singapore...

BSD

BSD, Buyer's Stamp Duty, is a tiered tax payable on every Singapore property purchase, regardless of citizenship or how many properties the buyer already...

BTO

BTO, Build to Order, is HDB's quarterly ballot system for new flats sold before construction begins. Applicants apply online during a launch window, pay a...

C

Capital appreciation

Capital appreciation is the rise in a property's market value over time, a gain that only becomes real money if you sell or refinance against it. It is...

Capital outlay

Capital outlay is the total upfront cash and CPF a buyer must have ready before or at completion, downpayment, stamp duties, legal fees, and other one...

Cash flow, positive and negative

Cash flow is the actual money moving in and out of a property each month, rent received minus the mortgage instalment, property tax, maintenance and other...

Caveat

A caveat is a formal notice lodged against a property's title with the Singapore Land Authority to protect an interest in that property, most often filed...

CCR, RCR, OCR

CCR, RCR and OCR divide Singapore's private property market into three zones. CCR, Core Central Region, is Districts 1, 2, 4, 9, 10 and 11, the prestige...

Certificate of Statutory Completion (CSC)

The Certificate of Statutory Completion, or CSC, is issued after Temporary Occupation Permit, once a development has been confirmed built fully in...

Cluster housing

Cluster housing is a form of strata landed housing, typically terrace or semi detached units within a single gated development managed by an MCST, sharing...

Completion date

The completion date is the day legal ownership of a property formally transfers from seller to buyer, the balance purchase price and outstanding loan are...

Conservation shophouse

A conservation shophouse is a shophouse within a URA gazetted conservation area, where the facade and certain architectural elements are protected and any...

COV

COV, Cash Over Valuation, is the amount an HDB resale buyer pays above the bank's or HDB's valuation of the flat. It reflects competitive bidding in a...

Covenant of quiet enjoyment

The covenant of quiet enjoyment is an implied protection in a Singapore tenancy that the landlord will not interfere with the tenant's lawful use and...

CPF accrued interest

CPF accrued interest is the interest, 2.5 percent a year and compounding, that CPF Ordinary Account savings would have earned had they not been withdrawn...

CPF OA

CPF OA, the Central Provident Fund Ordinary Account, is a Singaporean's compulsory savings account that can be used for housing, education and...

CPF SA

CPF SA, the Special Account, is a Singaporean's retirement savings account, separate from the Ordinary Account, earning 4 percent per annum in 2026 versus...

D

Days on market

Days on market is how long a listing has been actively for sale before it finds a buyer, counted from when it first goes live to when an Option to...

Defects liability period

The defects liability period is the window after a new property is handed over during which the developer is contractually obliged to fix defects at no...

Deferred Payment Scheme

The Deferred Payment Scheme, DPS, lets a new launch buyer defer most of the price until TOP. MND removed it for EC land tendered from 8 May 2026 onward; every EC on the market today can still be offered on DPS.

Developer Project Account

A project account is a dedicated bank account that Singapore law requires every licensed housing developer to open for each development, so buyer payments...

Development charge

A development charge is a levy payable to the state when a landowner intensifies a site's use, for example by increasing the permitted gross floor area...

Diplomatic clause

A diplomatic clause is a tenancy agreement clause that lets a tenant end the lease early, without the usual penalty, if their posting to Singapore ends or...

Down Payment

The down payment is the portion of a property price you pay upfront before a bank loan covers the rest, sized by the LTV limit. For a first bank loan, LTV...

Dual Key Unit

A dual key unit is a single condo unit built with two separate, self contained living spaces, each with its own entrance, bathroom and kitchenette,...

E

EC

An Executive Condominium, EC, is a Singapore hybrid public private housing type with eligibility rules and pricing similar to HDB at first, that fully...

EIP

The Ethnic Integration Policy, EIP, sets ethnic quotas for Chinese, Malay, Indian and Other groups in each HDB block and neighbourhood, introduced in 1989...

En bloc

En bloc, or collective sale, is when the owners of an entire condominium development sell the whole property together to a developer for redevelopment. It...

Encumbrance

An encumbrance is any claim, charge, or restriction registered against a property's title that limits the owner's ability to freely sell or transfer it,...

Entry price

Entry price is what a property actually costs to acquire once every upfront cost is included, not just the headline price on the Option to Purchase. It is...

Essential occupier

An essential occupier is someone HDB requires you to list on a flat application to meet the citizenship or family nucleus conditions of a scheme, even...

Executive apartment (HDB)

An executive apartment is a single storey HDB flat type larger than a standard 5 room flat, built mainly in the late 1980s and 1990s. Remaining lease on...

Executive maisonette

An executive maisonette is a two storey HDB flat type, generally larger than a standard flat, built mostly from the 1980s to the mid 1990s. Financing and...

Exercise fee

The exercise fee is the payment a buyer makes to exercise an Option to Purchase and convert it into a binding contract. For private resale property it is...

Exit strategy

An exit strategy is the plan for how and when you eventually sell, refinance, or otherwise leave a property, worked out before you buy rather than...

F

Family nucleus

A family nucleus is the specific group of people, defined by their relationship to you, that HDB recognizes as eligible to apply for a flat together....

Fiance and Fiancee Scheme

The Fiance and Fiancee Scheme lets an engaged couple apply for an HDB flat together before marriage, on the understanding that they register their...

Fire Insurance

Fire insurance is a policy HDB requires when a flat is bought with an HDB concessionary loan, covering the cost of reinstating the flat's basic structure...

First timer status

First timer status means no one in your household, owners or listed occupiers, has previously received a CPF housing grant or owned a subsidized HDB flat,...

Fixed Rate Home Loan Package

A fixed rate home loan package locks your mortgage interest rate for a set period, commonly two to five years, so the monthly instalment stays predictable...

Floating Rate Home Loan Package

A floating rate home loan package charges an interest rate that moves up or down over time, typically tracking the SORA benchmark plus a bank spread, so...

Freehold versus a 999 year lease

Freehold and a 999 year lease are both effectively perpetual in practical terms, since 999 years is far beyond any realistic holding period or lending...

FRS

The Full Retirement Sum, FRS, is the CPF savings benchmark a member turning 55 needs set aside for a standard CPF LIFE monthly payout. For 2026 it is...

G

GLS

Government Land Sales, GLS, is how the state releases residential sites to developers, on a Confirmed List, released regardless of developer interest, and...

Good Class Bungalow (GCB)

A Good Class Bungalow is the most restrictive category of landed housing in Singapore, located within gazetted GCB Areas under URA planning guidelines....

Gross Floor Area

Gross floor area, GFA, is the total covered floor area a development is allowed to build under its plot ratio, while the strata area quoted for your...

H

Handover condition and fair wear and tear

Handover condition is the state a rental unit must be returned in at the end of a tenancy, usually described as the condition at the start allowing for...

HDB flat classification

HDB's flat classification framework sorts new BTO flats into three tiers, Standard, Plus and Prime, based on location attractiveness, with each tier...

HDB housing grants

HDB housing grants are CPF administered subsidies that reduce the cash and CPF needed for an HDB resale flat. The main ones are the Enhanced Housing...

HDB resale application

An HDB resale application is the formal submission made through the HDB Resale Portal after both parties have exercised the Option to Purchase, triggering...

HDB resale levy

The HDB resale levy is a charge payable when a household that already received a housing subsidy, via a BTO, DBSS flat, or subsidised EC, buys a second...

HFE letter

The HFE letter, HDB Flat Eligibility letter, is the mandatory first step before buying any HDB flat, new or resale. Introduced in 2023, it combines flat...

Holding cost

Holding cost is everything it costs to own a property month to month beyond the mortgage principal, interest, property tax, maintenance fees, insurance...

Home Improvement Programme

The Home Improvement Programme, HIP, is HDB's scheme to renew essential structural and utility elements in older flats, such as spalling concrete,...

HPS

The Home Protection Scheme, HPS, is CPF Board administered mortgage reducing insurance for HDB flats bought with an HDB concessionary loan and CPF...

I

Income ceiling

The income ceiling is the maximum average gross monthly household income a household can have to qualify for a subsidised HDB scheme, such as a BTO flat,...

Inventory list at handover

An inventory list is a written and photographed record of a rental unit's condition, furniture, and fittings taken at the start of a tenancy. It becomes...

J

Joint Singles Scheme

The Joint Singles Scheme lets a small group of unmarried, eligible Singapore Citizens buy and own an HDB flat together, without a spouse or family...

Joint tenancy

Joint tenancy is a way for two or more people to co own a Singapore property with equal, undivided shares and a right of survivorship, meaning that when...

Jumbo flat

A jumbo flat is an HDB flat formed by combining two adjacent smaller units, typically two 3 room flats, into a single larger home, a configuration HDB...

L

Land Betterment Charge

The Land Betterment Charge is a charge payable to the state for the increase in land value from developing, redeveloping, or changing the use of a site to...

Landlord obligations

Landlord obligations are the responsibilities a landlord takes on once a tenancy agreement is signed, generally covering handing over the unit in the...

Layout Efficiency Ratio

Layout efficiency ratio, sometimes called space efficiency, is the percentage of a unit's quoted strata area that is actually usable internal living...

Lease decay

Lease decay is the loss in a leasehold property's value as its remaining lease shortens, driven by shrinking CPF usage and bank financing headroom as the...

Leasehold vs Freehold

Tenure describes how long a property owner holds legal rights to the land: freehold has no expiry, while leasehold, most commonly 99 years in Singapore,...

Letter of Intent (LOI)

A Letter of Intent, LOI, is a document that sets out a buyer's proposed price and key terms for a property before either side signs a legally binding...

Leverage

Leverage means using borrowed money, a mortgage, to control a property worth far more than the cash and CPF actually put in. It magnifies gains if the...

Loan Tenure

Loan tenure is the number of years you agree to take to repay your mortgage, commonly 20 to 30 years in Singapore. A longer tenure lowers the monthly...

Lock in period

A mortgage lock in period is the window, usually 2 to 3 years, during which a Singapore bank charges a penalty, commonly around 1.5 percent of the...

LTV

LTV, Loan to Value, is the maximum percentage of a property's price or valuation that a bank will lend. For a first residential loan with no other...

M

Maintenance Fee

The maintenance fee, formally the management fund contribution, is the recurring charge every strata unit owner pays the MCST to run the development's day...

MCST

MCST, Management Corporation Strata Title, is the body that governs a condominium or strata landed development's common property once it is formed. It...

Minimum cash down payment

The minimum cash down payment is the portion of a property's down payment that must be paid in cash rather than CPF, currently at least 5 percent of the...

Monthly Instalment

The monthly instalment is the amount you pay every month to repay your mortgage, made up of interest plus a portion that reduces the principal. TDSR and...

MOP

MOP, Minimum Occupation Period, is the 5 year period an HDB flat or Executive Condominium owner must live in the unit as their home before they can sell...

Mortgage

A mortgage is a loan from a bank or from HDB that helps you pay for a property, using the property itself as security. You borrow a large sum upfront and...

Mortgage Broker

A mortgage broker compares home loan packages across several banks on your behalf and helps you apply, usually at no direct cost to you since brokers are...

Mortgage Reducing Term Assurance

Mortgage Reducing Term Assurance, MRTA, is a decreasing term life insurance policy sized to your outstanding home loan, paying out to settle the remaining...

Mortgagee sale

A mortgagee sale happens when a bank forecloses on a property because the owner has defaulted on their home loan, and the bank sells the unit to recover...

MSR

MSR, Mortgage Servicing Ratio, is a tighter borrowing cap that applies only to HDB flats and Executive Condominiums, limiting the monthly housing...

N

Net sale proceeds

Net sale proceeds are what a seller actually walks away with after a property sale, calculated by taking the sale price and deducting the outstanding home...

New Launch Option to Purchase

An Option to Purchase for a new launch works differently from a resale OTP: the buyer books a unit and pays a booking fee to the developer, then exercises...

Non Citizen Spouse Scheme

The Non Citizen Spouse Scheme lets a Singapore Citizen buy an HDB resale flat together with a spouse who is neither a citizen nor a permanent resident,...

Normal Payment Scheme

The Normal Payment Scheme is the term used for the standard milestone based payment structure for new launch private property in Singapore, contrasted...

O

Occupier

An occupier is a person named on your HDB flat application who is allowed to live in the flat but does not own any share of it. An owner holds legal title...

Open booking of flats

Open booking of flats is HDB's system for selecting from unsold or unbooked flats on the HDB Flat Portal without going through a fresh ballot, generally...

Opportunity cost

Opportunity cost is the value of the next best thing given up by putting cash and CPF into a property, most often what that money could otherwise have...

Option to Purchase

The Option to Purchase, OTP, is the first binding legal document in a Singapore property transaction. The buyer pays an option fee to secure an exclusive...

Owner Occupier Tax Rate

Singapore applies two separate progressive property tax rate schedules to residential property: a lower, owner occupier schedule for the home you actually...

P

Partial Prepayment

Partial prepayment is paying down some of your outstanding mortgage principal in a lump sum on top of regular instalments, to reduce the loan balance...

Penthouse

A penthouse is the top floor unit or units of a condo development, usually the largest layout in the project and sometimes a duplex or triplex with a...

Plot ratio

Plot ratio, or Gross Plot Ratio, is the maximum buildable gross floor area allowed on a site relative to its land area, set by URA under the Master Plan....

Power of Attorney in a property transaction

A Power of Attorney is a legal document that lets one person, the donor, formally authorise another, the attorney, to sign documents and act on their...

Principal

Principal is the amount of money you actually borrowed for your mortgage, before interest. Each monthly instalment is split between interest owed and a...

Progressive Payment Scheme

The Progressive Payment Scheme, PPS, is the standard payment structure for buying a new launch condominium in Singapore, spreading payment across roughly...

Property Tax

Property tax is an annual tax IRAS charges every property owner in Singapore, calculated by applying a progressive tax rate to the property's Annual...

PSF

PSF, Per Square Foot, is the standard unit for quoting Singapore property prices, calculated as the transacted or asking price divided by the unit's floor...

R

Redemption Penalty

A redemption penalty is a fee a bank can charge if you repay your entire mortgage early, usually while you are still inside the loan's lock in period...

Refinancing

Refinancing is switching a mortgage to a new package, usually with a different bank, once the lock in period on the current package ends, while repricing...

Remaining lease

Remaining lease is the number of years left on a leasehold flat or property before it reverts to the state, and for HDB flats it shapes financing through...

Rental yield

Rental yield measures the annual rental income a property generates as a percentage of its value; gross yield divides annual rent by price or valuation...

Renting a whole unit versus a room

Renting a whole unit means one tenancy for the entire property, while renting a room means the owner or another tenant continues living there and lets out...

Restructuring (decoupling)

Restructuring, formerly known as decoupling, is when one spouse in a married couple transfers their share of a jointly owned property to the other,...

S

Sale and Purchase Agreement (S&P)

The Sale and Purchase Agreement, or S&P, is the formal contract a developer issues after a buyer exercises the Option to Purchase on a new launch unit,...

SBF

SBF, Sale of Balance Flats, is HDB's quarterly sale of unsold or returned flats from earlier BTO exercises, often well advanced in construction or already...

Second timer status

Second timer status applies when someone in your household, an owner or a listed occupier, has previously received a CPF housing grant or owned a...

Security deposit

A security deposit is a sum a tenant pays a landlord before moving in, held as protection against unpaid rent or damage beyond fair wear and tear. In...

SERS

SERS, the Selective En Bloc Redevelopment Scheme, is a government initiated programme that redevelops selected older HDB precincts, ending affected leases...

Share Value

Share value is the number assigned to each unit in a strata development under the Building Maintenance and Strata Management Act, reflecting its relative...

Shoebox unit

A shoebox unit is market shorthand for a very small apartment, usually a studio or one bedroom layout with a compact floor area. There is no single...

Showflat

A showflat, or show unit, is the display unit a developer fits out to represent a new launch's layout and finishes before the actual building is...

Single Singapore Citizen Scheme

The Single Singapore Citizen Scheme lets an eligible single Singapore Citizen buy an HDB flat on their own, without a family nucleus. It comes with its...

Sinking Fund

A sinking fund is the long term capital reserve every MCST collects alongside monthly maintenance fees, set aside for major repairs and replacements the...

SORA

SORA, the Singapore Overnight Rate Average, is the benchmark interest rate published by the Monetary Authority of Singapore, calculated as the volume...

Special Levy

A special levy is a one off, additional charge an MCST raises on top of regular maintenance fees and the sinking fund when the reserve is not enough to...

SSD

SSD, Seller's Stamp Duty, is a tax charged when a residential property is sold within a set holding period of purchase, designed to discourage short term...

Stack and Facing

A stack is the vertical column of units in a new launch that share the same layout position on every floor, and facing is the direction a unit's main...

Stamp duty on a tenancy agreement

Stamp duty on a lease is a tax payable to IRAS on a signed tenancy agreement, calculated based on the rent payable over the lease term. Either party can...

Strata landed housing

Strata landed housing is landed property, such as a terrace or semi detached house, held under a strata title within a gated development and managed by an...

Strata Title

Strata title is a form of property ownership where you hold exclusive title to your individual unit, together with an undivided common share in the...

Stress Test Interest Rate

The stress test interest rate is a floor rate banks must use to check mortgage affordability even if the actual quoted rate is lower. Under TDSR, banks...

Sub sale

A sub sale is the sale of a new launch condominium unit before it reaches Temporary Occupation Permit, TOP. The seller is transferring their rights under...

Subletting

Subletting is renting out a property, or part of it, to someone else while the original tenant or owner remains legally responsible under the head lease...

T

TDSR

TDSR, Total Debt Servicing Ratio, is a Monetary Authority of Singapore rule capping all monthly debt repayments, including the new mortgage, car loans and...

Temporary extension of stay

A temporary extension of stay is an arrangement where a seller who has already completed the sale of their property is allowed to remain in the unit for a...

Tenancy agreement

A tenancy agreement is the legal contract between landlord and tenant setting out the rent, the lease term, the security deposit, and each party's...

Tenancy in common

Tenancy in common is a way for two or more people to co own a Singapore property in defined shares, which can be equal or unequal, with no automatic right...

Tenancy renewal and the renewal window

Tenancy renewal is extending a lease, or agreeing a fresh one, with the same tenant before the current lease ends. The renewal window, often the two or...

Tenant pool

Tenant pool is the realistic group of people likely to want to rent a specific unit, shaped by its location, size, price point, and what demand sits...

Tenant screening

Tenant screening is the practical process a landlord uses to check a prospective tenant before signing a lease, covering identity and pass validity,...

Title search and requisitions

A title search pulls the official record for a property from the Singapore Land Authority to confirm the registered owner and reveal any mortgages,...

TOP

TOP, Temporary Occupation Permit, is issued when a new development is ready for occupation, marking the point a buyer can collect keys and move in,...

U

Unit Mix

Unit mix is the breakdown of how many units of each size and bedroom type make up a new launch development, usually published as a count or percentage...

URA Master Plan

The URA Master Plan is Singapore's statutory land use plan, setting out what can be built where over the medium term, reviewed roughly every five years....

V

Vacancy rate

Vacancy rate is the share of time, or of units in a building or area, that sits empty and earns no rent. For a single landlord it usually means how many...

Vacant possession

Vacant possession means a property is handed over empty of occupants, tenants, and most of the seller's belongings, and free of any right for someone else...

Valuation limit

The Valuation Limit, VL, is the lower of the purchase price or the market valuation of a private property at the time of purchase, and it is the first...

W

Walk up apartment

A walk up apartment is a low rise private residential block, typically up to around five or six storeys, with no lift. Many sit on older sites with plot...

Withdrawal limit

The Withdrawal Limit, WL, is the higher, second ceiling on CPF usage for a private property, typically 120 percent of the Valuation Limit. Once a buyer...

Z

Zoning

Zoning is how the URA Master Plan classifies every parcel of land in Singapore for a permitted use, such as residential, commercial, industrial, or a mix,...