Understanding these property-related jargons can be invaluable when navigating Singapore’s real estate market, whether you’re buying, selling, or renting property.
Listing these terms and jargons from A to Z for your ease of reading:
A
- ABSD (Additional Buyer’s Stamp Duty): A tax on property purchases in addition to the standard Buyer’s Stamp Duty, applicable to certain buyers, such as foreigners and entities.
AGM (Annual General Meeting): A meeting held by a management corporation (MCST) for condo or apartment owners to discuss property management matters.
AV (Annual Value): The estimated yearly rental income of a property, used for property tax assessment.
B
- BSD (Buyer’s Stamp Duty): Tax levied on property buyers when they purchase residential properties, regardless of how many properties owned.
BUC (Building Under Construction): A property that is still being built or developed.
BTO (Built-to-Order): New HDB flats that are offered for sale directly by HDB.
C
- CCR (Core Central Region): A geographical area in Singapore encompassing prime districts like 9, 10, 11, and parts of the Downtown Core and Sentosa.
CMA (Comparative Market Analysis): An evaluation of a property’s value based on recent sales of similar properties in the same geographic area.
COV (Cash-Over-Valuation): The additional amount paid by the buyer on top of the property’s valuation.
CPF (Central Provident Fund): A mandatory savings scheme in Singapore that can be used for property purchases.
CSC (Certificate of Statutory Completion): Issued when all construction works have been completed and approved.
Common Areas: Areas within a property development that are for shared use among residents.
Caveat: A legal notice placed on a property title to indicate a claim or interest in the property.
D
Diplomatic Clause: A clause in the tenancy agreement allowing early termination if the tenant is posted overseas.
DPS (Deferred Payment Scheme): Refers to a payment arrangement offered by developers to property buyers. Under this scheme, buyers can secure a property with a down payment (usually a percentage of the property’s purchase price) and then defer making the full payment until a later date.
E
EC (Executive Condominium): A type of hybrid housing in Singapore, which starts under the HDB’s rules and regulations when it is first built but becomes fully private after 10 of years.
EIP (Ethnic Integration Policy): A policy ensuring a balanced mix of ethnic groups within HDB neighborhoods.
F
Freehold: Ownership of the property and/or land with no lease restrictions
G
GFA (Gross Floor Area): The total floor area of a building, including all floors and spaces.
GCB (Good Class Bungalow): A classification of high-end landed properties, with limited supply in Singapore.
Good Faith Deposit: This deposit is typically a requirement accompanying the LOI (Letter of Intent) for rental transactions. Typically equal to one month’s rent, it is considered a component of the security deposit paid by the tenant to the landlord, preventing the landlord from renting the property to another individual during this period.
H
HDB (Housing and Development Board): Singapore’s public housing authority, responsible for public housing development.
HIP (Home Improvement Programme): A government program for upgrading older HDB flats.
HFE (HDB Flat Eligibility): Starting from 9th May 2023, HDB has introduced an updated document called the HDB Flat Eligibility (HFE) letter, replacing the old HLE letter. This new letter is designed to offer prospective flat buyers a comprehensive evaluation of their housing and financial possibilities prior to embarking on their home purchasing endeavour.
J
- JTC (Jurong Town Corporation): A government agency responsible for industrial development in Singapore.
Joint Tenancy: A widely adopted form of co-ownership in Singapore. Its standout feature is the right of survivorship, which means that when one co-owner passes away, their share automatically transfers to the surviving co-owners. This setup is common among spouses and family members.
L
Leasehold: Ownership of the property for a specific lease period, usually 99 years for HDB flats and 999 years for some private properties.
Landed Property: Refers to houses with their own land, including bungalows, semi-detached, and terraced houses.
LTA (Land Transport Authority): Government body that primarily deals with transportation and land-related matters rather than directly overseeing or managing real estate. Its core responsibilities are centred around the planning, development, and maintenance of transportation infrastructure and systems in the country.
LTV (Loan-to-Value): Loan-to-Value ratio is the percentage of the property price that can be financed through a loan.
LOI (Letter of Intent): Formal written proposal submitted by a tenant to a landlord. It outlines the terms of the proposed tenancy, including details like rent amount, lease duration, commencement date, and other relevant factors.
M
MCST (Management Corporation Strata Title): The body responsible for managing condo or apartment developments.
Mixed-use Developments: Property projects that combine multiple types of land uses within a single development. Commonly, for private residential projects, it is a combination of commercial retail spaces with residential units in a single development.
MSR (Mortgage Servicing Ratio): A key financial metric used in Singapore’s real estate and mortgage market. It is a regulatory measure that assesses a borrower’s ability to service their housing loan payments. MSR is used for home loans when purchasing HDB (Housing and Development Board) flats and new executive condominiums (ECs).
MOP (Minimum Occupation Period): A period of time imposed by the Housing and Development Board (HDB) in Singapore. It determines the minimum duration that a HDB or Executive Condo (EC) property owner must reside in their newly purchased property before being allowed to sell, rent out the entire unit, or transfer ownership.
O
OTP (Option to Purchase): A document granting the buyer the exclusive right to purchase a property at an agreed-upon price.
OCR (Outside Central Region): Covers the suburban areas and outskirts of Singapore. This region offers a more spacious and family-friendly living environment. Properties in the OCR tend to be more affordable compared to the CCR and RCR
P
PES (Private Enclosed Space): Outdoor space within a private property unit. Usually used in a floor plan to indicate the ground floor patio.
PSF (Price per Square Foot): A common metric for property prices, especially for private developments.
Partially Furnished: For partially furnished houses, they come equipped with basic home appliances such as fridge, washing machine and microwave/oven, curtains and lighting fixtures.
PPS (Progressive Payment Scheme) : For a new condo or EC that is still under construction at your point of purchase, your payment to the developer will be in phases called the Progressive Payment Scheme. The PPS allows you to defer your home loan instalments as you will not servicing the full 75% of your loan amount immediately upon purchase.
R
RCR (Rest of Central Region): The area within the Central Region that is outside specific prime districts.
S
- SQFT (Square Feet): A unit of measurement for property size, most commonly used for private properties.
SQM (Square Meter): A unit of measurement for property size, most commonly used for HDB flats.
SSD (Seller’s Stamp Duty): A tax on properties sold within a certain holding period.
SLA (Singapore Land Authority): Statutory board under the Ministry of Law in Singapore. Its primary responsibility is to manage and regulate land and property-related matters in the country.
SIBOR (Singapore Interbank Offered Rate): A benchmark interest rate used in Singapore’s financial markets. It will be replaced by SORA by June 2024.
SORA (Singapore Overnight Rate Average): The volume-weighted average borrowing rate in Singapore’s unsecured overnight interbank cash market. SORA will be used for all floating mortgage loans packages by June 2024.
Strata Title: Refers to a specific form of property ownership that is commonly used for multi-unit developments like condominiums, apartments, and townhouses. When you own a property with a strata title, you have ownership rights to your individual unit within a larger building or development, as well as shared ownership of common areas and facilities.
Security Deposit: In Singapore, this deposit is mandatory and is submitted during the Tenancy Agreement (TA) signing process. The landlord refunds this amount to the tenant at the end of a specified period without accruing any interest. However, in the event of damage to the property, the landlord holds the right to deduct an appropriate amount as compensation for the damages.
T
- TDSR: Total Debt Servicing Ratio is a measure of your ability to service all your outstanding debts, including the new mortgage.
TOP (Temporary Occupation Permit): A permit issued when a new property is considered safe for occupation.
TA (Tenancy Agreement): A tenancy agreement, is a legally binding contract between a landlord and a tenant that outlines the terms and conditions governing the rental of a residential or commercial property. This agreement sets forth the rights, responsibilities, and obligations of both parties during the tenancy period.
Tenanacy in Common: In this arrangement, co-owners hold distinct and individual shares of the property. Tenancy in Common does not entail an automatic right of survivorship. Each co-owner can sell, transfer, or bequeath their share independently.
U
URA (Urban Redevelopment Authority): Singapore’s land-use planning and conservation authority.
URA Master Plan: A long-term land-use plan outlining Singapore’s development.
V
- Vacant Possession: The point in time when the buyer takes full possession of the property.