Singapore is famous for its stable and efficient government, ease of doing business, friendly locals, lush urban greenery, heritage and great cuisine from all over the world. It is with little doubt that Singapore is a popular location for both foreign investments and talents globally. For foreigners who have been living and working in Singapore for a while, this question may pop into their heads “Can foreigners buy property in Singapore?” The answer is yes and we are here to share more.

What Kind Of Property Is A Foreigner Eligible For?

One is a foreigner if they do not hold Singapore citizenship. As such, Singapore Permanent Residents (SPRs) are also considered foreigners.

Public/Public-Private Hybrid Homes Eligibility

The public housing sector falls under the Housing and Development Board (HDB) preview and foreigners do face certain restrictions. Both Singapore PRs and non-Singapore PRs are restricted from buying new HDB flats such as Build-to-Order (BTO) and Sale of Balance Flats (SBFs). There are also several conditions to meet:

Eligibility

If you’re a non-Singapore Permanent Resident (SPR) buying the property alone, you will only be eligible for a private executive condominium (EC) that is more than 10 years old. For Singapore PR buying alone, you can’t buy a new or resale HDB flat and can only buy resale ECs that have reached their 5-year Minimum Occupation Period (MOP).

However, Singapore PR who are jointly buying with another Singapore PR can go for a resale HDB flat (3 years after obtaining your PR), a resale EC that is more than five years old or a privatised EC that is more than 10 years old. Singapore PR buying with a non-Singapore PR does not have the resale HDB flat option. Non-Singapore PR couple can only go for a privatised EC that is more than 10 years old

Private Property Homes Eligibility

Private properties are much more open for foreigners and hence they are likely to be your preferred option. They also come with better furnishing, interiors designs and are generally located in good centralised locations. Although private condominiums are more expensive, they also come with shared facilities such as swimming pools, gyms, saunas, and more.

Eligibility

Here are the property types that foreigners are eligible for:

• An apartment or condominium unit
• A strata landed house in an approved condominium development
• A leasehold estate in a landed residential property for a term not exceeding seven years, including any further term which may be granted by way of an option for renewal
• A landed property on Sentosa Cove

Restrictions

Foreigners who are looking to purchase landed properties in Singapore need to be aware of the following restrictions. You will need to write to the Land Dealings Approval Unit when looking to purchase the following:

• Vacant residential land
• Terrace house
• Semi-detached house
• Bungalow/detached house
• Strata landed house which is not within an approved condominium development under the Planning Act (e.g. townhouse or cluster house)
• Shophouse (for non-commercial use)

This approval will be granted on a case-by-case basis. You are likely to stand a better chance if you can show evidence that you have made an “exceptional economic contribution to Singapore”. To apply, you can contact SLA at 6478-3444, or apply online on SLA’s website. Alternatively, you can visit them at the following address: Land Dealings Approval Unit, Singapore Land Authority, 55 Newton Road, #12-01 Revenue House, Singapore 307987

Procedures for buying property in Singapore

Step 1: Calculate Your Available Cashflow

Now that you know which properties you are eligible for, you need to calculate your available cashflow for your maximum property affordability.

Step 2: Check if you need to pay taxes

Foreigners are required to pay Additional Buyer’s Stamp Duty (ABSD) when buying private property in Singapore. Singapore PRs buying their first residential property are subjected to an ABSD rate of 5% and 15% for their second and subsequent residential property. Foreigners will need to pay an ABSD rate of 20% regardless of the number of residential properties purchased.

However, there is no need to pay ABSD for US nationals or nationals and Permanent Residents from Switzerland, Liechtenstein, Norway and Iceland. You also need to pay a Buyer’s Stamp Duty (BSD) and Mortgage Duty whether you are buying from the public or private housing markets.

Do also note you need to factor in legal fees and other administration fees.

Step 3: Get A Reliable Agent

A reliable and quality property agent can help you look out for the best deals, assist you with financial calculations, manage property documentations and other nitty-gritty details. They will typically charge an agent fee of one per cent. You can explore jimtay.com for your property search.

Step 4: Apply for a bank loan

Unlike Singaporeans who can opt for CPF Property Loans for HDB, foreigners are only eligible for a bank loan in Singapore. You can get up to 75% financing on the property’s purchase price for the first property and 55% for the second and subsequent property. Bank loans are subjected to floating rates meaning their interest rate can go higher or lower. Banks are also very strict should you default on your repayments and will not hesitate to repossess your home.

Step 5: Close The Deal

Once you have found your dream home in either the HDB or private property market, it is time to close the deal. For HDB resale flats, you will need to log into the HDB Resale Portal with your SingPass. For condominiums, you will need to commit an option fee of 1% of the purchase price, secure financing and pay the remaining option fee of 4% within a month. Following this, you will need to place a downpayment of 15% in cash and/or CPF for SPRs. Foreigners will need to pay this in cash and the rest will be loaned by the bank.

We hope this help explain how a foreigner can own a property home in Singapore.