This is one of the most common Singapore property shocks: you sell “at a profit”, then your cash proceeds look tiny. In most cases, it’s not a scam — it’s CPF refund mechanics.
Fast answer: If you used CPF OA for the downpayment and monthly instalments, CPF must be refunded principal + accrued interest when you sell. That refund happens before you see any remaining cash.
Related: selling costs + net proceeds reality · mortgage interest cost · cash required
When you sell a property in Singapore, your sale proceeds are typically applied in this order:
That’s why you can “sell higher than you bought” and still receive very little cash — the bank and CPF are paid first.
CPF frames property use as an opportunity cost: if your OA money wasn’t used for the property, it would have earned OA interest inside CPF. So CPF tracks a running “what your OA would have become”.
Think of it as restoring your CPF position, not paying a random extra fee. It feels painful because it reduces cash-out, but the value is still “yours” — now back in CPF.
Many people calculate “profit” as: Sale price − purchase price. That’s incomplete.
Your real cash-out depends on: sale price minus loan redemption minus CPF refund minus selling costs.
Reality check: If you used CPF heavily (especially over many years), your CPF refund can absorb most of the sale proceeds — even if the property appreciated.
Also model: selling fees + SSD + net proceeds.
There is no universal answer. Use these rules to avoid regret:
Start from the full model: 5-year total exposure framework.
Because CPF used for the property (downpayment + instalments) must be refunded to your CPF OA with accrued interest before you receive the remaining cash proceeds.
CPF treats property use as if your OA funds had stayed in CPF earning OA interest. At sale, you refund the principal used plus the accrued interest that would have been earned.
Not necessarily. It often feels like a loss because it reduces cash-out, but it is essentially restoring your CPF balance (principal + interest) rather than paying an extra external fee.
It depends on liquidity, expected returns, and risk tolerance. Using CPF preserves cash today but can reduce future cash-out at sale; using cash can increase liquidity at sale but may reduce current buffers.