8 days ago

Singapore is a vibrant, safe, and cosmopolitan city-state that attracts expats from all around the world. With its strong economy, excellent infrastructure, and high quality of life, many foreigners consider settling down or investing in real estate here.

Why Buy Property in Singapore?

Stable Economy & Legal Framework Singapore is known for its political stability and robust legal system, making it a secure place for real estate investments.

High Rental Yields Due to strong demand for housing, especially in prime areas and near international schools, rental yields can be attractive for investment properties.

Excellent Infrastructure From world-class public transport to healthcare and education, Singapore offers top-tier facilities for residents.

Can Expats Buy Property in Singapore?

Yes, but with some restrictions. Foreigners are generally allowed to purchase condominiums, executive condominiums (ECs) (after a 10-year period), and commercial properties. However, landed properties such as bungalows or terrace houses are restricted and typically require special approval from the Singapore Land Authority (SLA).

Property Types Available to Expats

1. Private Condominiums Most popular among expats. They come with facilities like pools, gyms, and security. Available for purchase without government approval.

2. Executive Condominiums (ECs) A hybrid between public and private housing. Foreigners can buy ECs only after 10 years from their TOP (Temporary Occupation Permit) date.

3. Landed Property Only allowed with special permission from the government. Very difficult for expats to acquire unless they hold permanent residency and meet certain criteria.

4. Commercial Properties Offices, retail shops, and industrial spaces are generally open to foreign ownership with no restrictions.

Financing Your Property

1. Home Loans Foreigners can apply for a home loan from banks in Singapore. However, the Loan-to-Value (LTV) ratio is typically lower than for citizens or PRs (Permanent Residents), often capped at 60–75% depending on the individual's financial profile.

2. Down Payment You'll need to pay at least 25–40% of the purchase price in cash or CPF (if you’re a PR). Foreigners usually don’t have access to CPF funds.

3. Interest Rates Singapore offers both fixed and floating rate mortgages. Compare rates across banks and consider engaging a mortgage broker for the best deal.

Taxes and Fees

1. Buyer’s Stamp Duty (BSD) Applies to all buyers. Rates are tiered:

1% for the first $180,000
2% for the next $180,000
3% for the next $640,000
4-5% for amounts exceeding $1 million

2. Additional Buyer’s Stamp Duty (ABSD) Foreigners must pay an ABSD of 60% (as of 2023). This is significant and should be factored into your budget.

3. Legal Fees Hiring a local conveyancing lawyer is necessary. Expect to pay around S$2,500–S$5,000.

4. Property Tax Annual tax based on the Annual Value (AV) of the property, ranging from 4–16% for owner-occupied homes and 12–36% for investment properties.

Steps to Buying a Property in Singapore

Step 1: Set Your Budget Include all taxes, legal fees, and down payment. Use online calculators to estimate monthly mortgage repayments.

Step 2: Get Loan Approval-in-Principle (AIP) Approach banks or financial institutions to determine your loan eligibility. This helps you set a realistic price range.

Step 3: Engage an Agent Work with a licensed property agent who is familiar with the local market and foreigner-friendly properties.

Step 4: Start Viewing Visit properties in different districts. Popular areas among expats include Orchard, River Valley, Holland Village, and East Coast.

Step 5: Make an Offer Once you find a suitable property, make an offer through your agent. Negotiation is common.

Step 6: Option to Purchase (OTP) Upon agreement, you'll pay 1% of the price to secure the OTP. You have 14 days to exercise it by paying an additional 4% (making it 5% total).

Step 7: Finalise the Deal Your lawyer will complete due diligence and legal paperwork. Pay the remaining down payment and stamp duties.

Step 8: Collect Keys Once full payment is done and the legal process is complete, you’ll receive the keys and officially become a property owner.

Things to Consider

Long-Term Plans If you're planning to stay long-term, buying may make more sense than renting. However, if you're unsure, consider renting first.

Rental Potential If you’re buying as an investment, study the rental yields in different neighborhoods. Properties near MRT stations, international schools, and business hubs tend to have higher demand.

Exit Strategy Selling a property in Singapore also incurs Seller’s Stamp Duty (SSD) if sold within 3 years:

12% if sold within 1st year
8% within 2nd year
4% within 3rd year

Popular Areas Among Expats

Orchard / River Valley Upscale area close to shopping, dining, and nightlife. High-end condos dominate this district.

Holland Village Charming and trendy with a mix of expats and locals. Good for families.

East Coast Laid-back, seaside vibe with spacious condos and easy access to Changi Airport.

Bukit Timah Home to many international schools and green spaces. Very popular among expat families.

Final Thoughts

Buying property in Singapore as an expat is certainly possible, but it requires careful planning due to restrictions and taxes. Work with professionals—lawyers, agents, and mortgage consultants—to ensure a smooth process. Whether you’re looking for a family home or an investment, Singapore’s real estate market can be rewarding with the right strategy.