Although small compared to other regional countries, buying a property in this affluent city-state is considered a blue-chip investment. That’s because over the last few decades, Singapore has transformed itself from a backwater fishing village into an exciting, cosmopolitan city thanks to events like the world’s first Formula One night race and featured prominently in Hollywood movies like Crazy Rich Asians.
A country where English is widely spoken, Singapore is also known for good governance, political stability, transparency, efficiency and ease for doing business. This has helped put Singapore on the radar among foreign investors and made it an attractive property market. Another reason why foreigners like Singapore is the strength and stability of our economy and currency.
As such, several high-profile foreigners now call Singapore home, including Facebook co-founder Eduardo Saverin, renowned billionaire investor Jim Rogers and Chinese actor Jet Li.
You are considered a foreigner if you are not a Singapore citizen, a Singapore company, a Singapore limited liability partnership or a Singapore association.
What You Can And Cannot Buy
Calculate how much stamp duty you need to pay for your Singapore property
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.
Our listings provide a comprehensive selection of resale HDB flats, ECs and private condos as well as new private property launches to suit your budget and desired location.
As a general guide, you should consider proximity to nearby amenities, MRT stations, parks, economic drivers and ease of commuting to work as part of your selection criteria.
Get more insights on the right locations for your new home at AreaInsider
An agent can help you scout for the best deals, do your financial calculations, settle your paperwork and other nitty-gritty details. They will typically charge an agent fee of one percent.
Looking to buy a home in Singapore? Speak to one of PropertyGuru’s preferred property agents and get advice
Foreigners are only eligible for a bank loan in Singapore.
You can get up to 80 percent financing on the property's purchase price for the first property and 60 percent 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.
Thus, you need to set aside at least 12 months of savings, just in case.
Now that you have found your dream property in the HDB or private property market, it is time to seal the deal.
For HDB resale flats, you will need to log into the HDB Resale Portal with your SingPass.
You may refer to the resale procedure on the HDB website.
For condominiums, you will need to put down an option fee of one percent of the purchase price, secure financing and pay the remaining option fee of four percent within a month.
After this, you will need to place a downpayment of 15 percent in cash and/or CPF for SPRs.
For foreigners, you will need to pay this in cash.
Subsequently, you need to pay the remaining five percent in cash while the rest will be loaned by the bank.
Happy house hunting!
Source: Property Guru
Step-by-step guide for buying property in Singapore as a foreigner