Singapore Property Buying Guide: What Foreigners Can Own

Open: non-landed private residential property, such as condominiums and apartments in strata-titled buildings, and commercial or industrial property subject to separate conditions.

Restricted: landed homes (terrace, semi-detached, detached and good class bungalows) need approval from the Singapore Land Authority, which is rarely granted outside special areas such as Sentosa Cove. Sources differ on whether even Sentosa needs a formal approval step, so ask the SLA before assuming.

Closed: public housing (HDB flats) cannot be bought by foreigners.

The stock on our site covers apartments, houses and land; a foreigner can generally pursue the first, while the others raise permission questions.

1. View and negotiate. Ask the agent for recent transaction data to benchmark price.
2. Option to Purchase (OTP). The seller grants an option, typically 14 days, in exchange for an option fee of up to 1 percent of the price.
3. Exercise the option. Within the option period, you sign and pay a further deposit, bringing the total to 5 percent of the price in a standard resale.
4. Stamp duties. Buyer's Stamp Duty and ABSD are due within 14 days of the sale and purchase agreement.
5. Completion. Usually 8 to 12 weeks after exercise for resales; for new launches, payments follow construction progress.
6. Conveyancing. A lawyer handles title searches and registration with the Land Titles Registry.

A sale is binding once the option is exercised; no cooling-off period applies to resale.

The additional duty is why the price on the listing is only part of the story.

Free trade agreements give nationals of some countries, such as the United States, and nationals or permanent residents of Iceland, Liechtenstein, Norway and Switzerland, treatment closer to that of Singaporean citizens on ABSD. Singapore permanent residents pay lower rates than foreigners. Eligibility depends on exact status and the number of properties, so a lawyer should confirm your rate before you exercise the option.

Buying a home does not grant residence in Singapore. Routes include employment passes, the Global Investor Programme and family-linked passes. Each has income or investment criteria, and none is triggered by property alone. Plan the visa first. See the Singapore market page for what is available and the analytics view for price movement.

A 99-year leasehold loses value as the remaining term shortens, and banks may lend less against a short lease. Freehold and 999-year units usually cost more per square metre. Add monthly maintenance, which in a condo with pool, gym and security can be a meaningful sum, and the annual property tax on a non-owner-occupied home, which is charged at higher rates than owner-occupied property. Compare the gross rent on an identical unit with the full yearly costs before concluding that the yield is attractive.

Foreign buyers can borrow from Singapore banks, subject to total debt servicing rules. The loan-to-value ratio for a bank loan is generally capped, and banks apply a stress-test interest rate. Mortgages can be in Singapore dollars with floating rates tied to a benchmark. See the Singapore financing page and use the mortgage calculator.

• Remaining lease: freehold versus 99-year and 999-year leases
• Maintenance fees and the sinking fund
• Minimum occupation period on some new private property
• Rental rules: some condos limit rentals, and URA sets a minimum letting period for private homes (three months at the time of writing)
• Property's location relative to MRT stations and noise sources
• Developer's track record for new launches
• Currency exposure if your income is not in Singapore dollars

• Budgeting without ABSD
• Assuming a condo with a landed-style address is open
• Using the seller's agent without independent checks
• Ignoring the decline of the lease on older 99-year buildings
• Treating high rents as guaranteed
• Not planning the exit: the Seller's Stamp Duty penalises quick sales