Purchasing a property overseas is an ideal way to expand one’s property portfolio as it comes with several benefits, including additional rental income. Foreigners, including Indians, can purchase properties in Singapore. The real estate market in Singapore is expensive. Besides, investing in a property in the country may require government clearance. The transactions are governed by Singapore’s Residential Property Act of 2005. In this guide, we will explain the rules and regulations and processes related to purchasing properties in Singapore.
Singapore property market
Singapore, officially known as the Republic of Singapore, is a prominent business and financial hub in Southeast Asia. The city presents ample property options for investment. Owing to a high demand, property prices in the city are on the rise. Thus, buying a property in Singapore can be an expensive deal for Indians. However, those interested in purchasing a home in Singapore must meet the eligibility criteria.
Who can purchase a property in Singapore?
Foreigners, including Indians, can purchase a property in Singapore. However, there may be some restrictions, according to the Residential Property Act of 2005.
Non-Singapore permanent residents (non-SPRs)
- Non-SPRs can buy new HDB (Housing Development Board) flats but cannot buy a resale HDB flat alone.
- They can purchase resale Executive Condominium (ECs) that have reached their five-year minimum occupation period (MOP).
Singapore permanent residents (SPRs)
- Permanent residents can buy only a privatised EC that is more than 10 years old.
- They can also purchase a resale HDB flat three years after obtaining PR.
SPRs jointly purchasing property with another Singapore permanent residents
- Permanent residents can buy a resale EC that is more than five years old.
- They can purchase a privatised EC that is more than 10 years old.
SPRs jointly purchasing property with another non-SPRs
- Permanent residents can purchase a resale EC that is more than five years old.
- They can buy a privatised EC that is more than 10 years old.
Jointly purchasing as a non-SPR couple
- A non-SPR couple can purchase a privatised EC that is more than 10 years old.
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How to buy a property in Singapore?
- Know the price of the property and negotiate the price with the seller.
- One can approach a real estate agent who can facilitate the transaction.
- Apply for an overseas loan from a financial institution.
- Get the option to purchase (OTP) and pay 1% of the purchase price as an upfront payment to secure the property for a specified period.
- Confirm the commitment to purchase the property with the remaining 9% of the down payment as per the agreed timeline.
- Legal verification must be completed to confirm property ownership and legal eligibility for sale.
- Get the documents prepared by a lawyer for signing and transferring the property title.
- Register the sale with relevant authorities. You will get the property ownership once the purchase is finalised.
Type of properties Indians can buy in Singapore
The type of property options available for expats in Singapore are limited. Foreigners can only buy apartments in buildings of less than six storeys. For buying a property higher than this level, one has to seek government approval. Similarly, to purchase vacant land in Singapore, one has to seek approval from the Singapore Land Authority. For non-residents, there are no restrictions to purchase a condominium.
Cost of properties in Singapore
| Property type | Price range (SGD per sqft) |
| Apartment | 1,300 to 25,000 |
| Condominium | 1,300 to 4,800 |
| Walk-up | 1,400 to 1,600 |
Taxes on buying properties in Singapore
| Taxes | Amount |
| Buyer Stamp duty (BSD) | 1% for properties below 1,80,000 SGD |
| 2% for properties between 1,80,000 to 3,60,000 SGD | |
| 3% for properties over 3,60,000 SGD | |
| Additional Buyer Stamp duty (ABSD) | 16% for foreigners |
| 5% for permanent residents purchasing first property | |
| 10% for permanent residents purchasing second or subsequent home | |
| Conveyancing fees (legal fees) | 0.30% (Subject to a minimum fee of 1,800 SGD) |
Property buyers in Singapore must note that additional costs, such as stamp duty and legal fees add up to the total costs of property purchase. This is similar to the stamp duty and property registration charges in India.
FAQs
At what age can one buy a property in Singapore?
One must be at least 21 years of age to purchase a property in Singapore. Parents willing to purchase a house or apartment on behalf of their children can form a trust. The child will become the official owner of the property when he/she attains the age of 21 years.
Can I buy a property in Singapore as a non-resident?
Non-residents can buy properties in Singapore, apartments in buildings of less than six storeys, without any government approval.
How much is an apartment costs in Singapore?
A one-bedroom rented apartment in Singapore costs around 2,600 to 3,600 SGD.
Is Singapore a good place to buy properties?
Singapore's property market is expensive and is witnessing price appreciation. However, one can find many options for investment.
Is 3,000 Singapore dollars a month good?
For a single person, SGD 3,000 to 4,000 is ideal to meet the cost of living in Singapore.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |