Mastering Singapore Property: 7 Must-Know Acronyms for Investors
Welcome to the land of acronyms, where abbreviations rule the conversation! In Singapore, locals have mastered the art of using abbreviations for everything from highways to government agencies. And guess what? The property industry is no exception! So, if you're ready to dive into the exciting world of Singapore real estate, here are seven must-know acronyms and abbreviations:
HDB (Housing Development Board)
Get ready to enter the realm of public housing, Singapore style! With about 80% of Singaporeans residing in HDB flats, it's no surprise that these properties play a significant role in the housing market. In fact, Singapore has already hit a number of $1 million HDB flats in recent years!
TOP (Temporary Occupation Permit)
When construction is complete and a property is ready for occupancy, we say it has reached TOP status. This is an exciting milestone accompanied by the issuance of a Certificate of Statutory Completion (CSC).
COV (Cash Over Valuation)
Prepare yourself for the realm of COV, where the sum above the property's valuation becomes the talk of the town. With HDB prices soaring, COVs have reached jaw-dropping amounts, surpassing S$80,000 in recent years.
LTV (Loan to Value)
LTV, the differentiating factor between HDB-granted housing loans and bank loans, is a key player in the property financing game. Let's break it down:
HDB Housing LTV (up to 80%)
With the HDB Concessionary Loan, you can secure a loan of up to 80% of the property's purchase price or value. The downpayment can come from cash, CPF OA savings, or a combination of both. There is no minimum cash component.
Bank LTV (up to 75%)
For bank loans, the maximum LTV ratio stands at 75% for the first loan, with 5% of that amount paid in cash. The remaining 20% can be covered by cash or CPF-OA savings. This change was introduced in 2018 during property cooling measures and remains in effect.
SSD (Standard Stamp Duty)
Prepare to meet the notorious SSD! Imposed by IRAS, this duty applies to both property buyers and sellers, with rates based on the property's purchase value. Take a look at the rates for residential properties after 15 Feb 2023 in the table below:
Seller Stamp Duty
Buyer Stamp Duty
VTO (View To Offer)
When browsing open listings, you might come across VTO, signaling that the owner is testing the waters without stating an asking price. It's a way to see what offers the property can attract, and in some cases, it means the property's valuation exercise hasn't been completed.
Co-Broke
Let's talk cooperation! In the world of real estate, a co-broke agreement means that agents on both sides agree to share exclusive listings, splitting the commission equally. However, beware of agents who abuse this system, potentially hiding higher offers or encouraging clients to purchase more expensive properties for personal gain.
