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a foreigner can buy property in Singapore?

Real estate in Singapore is considered not only as an asset to local real estate buyers, but also to foreigners who consider local real estate as stable assets. This perception depends largely on our continued economy and stable politics. In addition, as a currency, the Singapore dollar is rock solid.

Another aspect that makes Singapore real estate attractive to foreign buyers is Singapore’s openness to foreign investment. Singapore is also a financial center that attracts global businesses and talents. Over time, this directly contributes to the appreciation of real estate value and provides stable rents, thereby benefiting real estate investors.

Although more and more foreigners want to invest in Singapore real estate or build a permanent home here, they have limited the types of real estate they can buy. In addition to not being able to purchase subsidized public housing (HDB), foreigners also need to bear a higher stamp duty (StampDuty) when buying real estate in Singapore.

 

What is the definition of “foreigner” in Singapore?

According to the Singapore Land Administration which is responsible for land use and property ownership, an entity is considered a foreigner if it is not a Singapore citizen, Singapore company, Singapore limited liability partnership or Singapore Association.

Therefore, Singapore Permanent Residents (SPR) are also considered foreigners.

 

Property that foreigners can and cannot buy

Property to buy:

  • Freehold / rental private apartment projects
  • HDB shops
  • Commercial real estate (including hotels)
  • Industrial real estate

 

Property to buy:

(To meet specific conditions)

  • Resale Government HDB

Only permanent residents buy on a household basis

  • Executive Condominiums (ECs)
    • Permanent Residents-From the sixth year after TOP
    • Foreigners-from the eleventh year after TOP

 

Property to buy:

(If approved by the Land Trading Permit Department)

  • Detached Landed Homes (planning approval after April 3, 2012)
  • Commercial shop house (including residential area)
  • Landed Homes
  • Vacant residential land

Property not to buy

  • New Government HDB

 

Public housing unit

The Housing and Development Board (HDB) was established in 1960 to promote home ownership in Singapore. Government HDBs build and sell new apartments directly for less than the market, and these apartments are not foreigners at all.

HDB flats are eligible for sale on the open market five years after their first use. This no-buying period is called the minimum occupation period (MOP). Since then, apartments that can be sold on the open market are called HDB resale apartments.

According to HDB regulations, foreigners who are Singapore Permanent Residents (SPR) can purchase resale apartments (ie, two or more applicants related by blood or marriage) if they form the core of the family. SPR may not be able to rent out the entire unit.

Having said that, living in a HDB apartment can be an amazing local experience.

 

Private property (non-limiting)

Since 1973, the Singapore government has imposed various restrictions on foreign ownership of all private property in Singapore under the Residential Property Act.

The law stipulates private property that foreigners are not allowed to buy. Having said that, foreigners can actually buy a lot of unrestricted real estate.

 

The following is a list of non-restricted real estate that foreigners may purchase in Singapore, applicable to freehold and leased property:

 

  • Apartment unit
  • Includes Executive Condominium after 10-year Restriction
  • Private apartment units (for example, pedestrian apartments)
  • Multi-storey home in approved apartment development
  • Strata landed in a planned approved apartment by April 3, 2012
  • All properties in Sentosa Cove
  • Commercial Shop House
  • Industrial and commercial properties (including hotels but excluding serviced apartments)
  • HDB shops and shophouses

 

Private property (restricted)

For foreign buyers, real estate classified as “restricted” under the Residential Real Estate Law is not 100% no. Government agencies must seek approval, and the possibility of approval is slim. An example of a recent successful applicant is James Dyson, who bought a luxury house worth S $ 45 million in July 2019 in Bukit Timah.

 

As stated by the SLA, applicants have a better chance if they can prove that they have made “an outstanding economic contribution to Singapore”.

 

The list of restricted attributes includes:

  • Vacant residential land
  • Landed houses with title (e.g. townhouses, landed villas)
  • Landed homes outside of approved condo development
  • Shophouses within non-commercial areas, including mixed commercial and residential shophouses
  • Association Premises
  • Place of worship
  • Worker quarters, serviced apartments and boarding houses

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