Singapore, as one of Asia’s financial hubs, has topped the global Index of Economic Freedom for three consecutive years, drawing many multinational companies to set up headquarters or regional headquarters there. As one of the world’s most competitive economies, Singapore’s property prices have also climbed steadily, attracting many foreign investors to buy property in Singapore. This article covers the basics and process foreigners need to know when buying private residential property in Singapore, including how the rules and restrictions differ from other markets.
How Singapore Defines a “Foreigner”
Under rules from the Singapore Land Authority, a buyer is considered a foreigner unless they are a Singapore citizen, a Singapore company, a Singapore limited liability partnership, or a Singapore society. This means Singapore Permanent Residents (SPRs) are also treated as foreigners when buying property.
Types of Property in Singapore
Singapore’s residential property mainly falls into four types: public housing flats (HDB), landed property, private apartments/condominiums, and Executive Condominiums (ECs). Each type carries different eligibility rules for who can buy it.
1. Public Housing Flats (HDB)
HDB flats are Singapore’s public housing, planned and built by the Housing & Development Board (HDB) for Singapore citizens under the “home ownership for all” policy. About 80% of Singapore’s population (as of 2021) lives in HDB flats.
2. Executive Condominiums (ECs)
Executive Condominiums (ECs) are also a government-introduced housing type, sitting between HDB flats and private condominiums. The land tenure is generally a 99-year lease, similar to an upgraded HDB flat, but built and sold by private developers, offering facilities almost identical to a private condominium at a lower price than the private condo market — a restricted-eligibility housing type.
As part of public housing, ECs come with certain purchase restrictions, but after 5 years of owner-occupation, they can be resold to Singapore citizens or permanent residents, and after 10 years, resold to any buyer on the open market, including foreigners and foreign companies.
3. Private Apartments/Condominiums
Private apartments/condominiums are Singapore’s fully privatized residential property. They can be freely bought and sold on the market, with no restriction on the buyer’s status. Most private apartments today are on a 99-year leasehold, with 999-year leasehold and freehold titles also existing. Because of limited land, 999-year leasehold and freehold titles have become uncommon, and 99-year leasehold now dominates the market.
4. Landed Property
Landed property refers to what are commonly called villas or houses. Due to limited land, foreigners are, in principle, not allowed to buy this type of property, with two exceptions: landed waterfront property on Sentosa/Sentosa Cove, and strata-titled townhouses. To buy other landed property, a foreigner would need to demonstrate to the Singapore Land Authority’s Land Dealings (Approval) Unit that they have made an outstanding economic contribution to Singapore, in order to apply for investment approval.
Can Foreigners Buy Property in Singapore?
What foreigners can and cannot buy is summarized below:
| Property Foreigners Can Buy | Property Foreigners Cannot Buy |
|---|---|
| Resale HDB flats (restricted to SPR households) | HDB flats |
| Private condominiums | |
| Fully privatized resale ECs, 10+ years old | Landed property (terrace houses, semi-detached houses, detached houses, good class bungalows) |
| Landed property in Sentosa Cove, strata-titled townhouses | Strata-landed housing |
The Buying Process for Overseas Buyers in Singapore
Step One: Confirm Eligibility
In Singapore, foreigners are not allowed to buy HDB flats, land or landed property; they may only buy private condominiums or designated landed property such as Sentosa Cove villas.
Step Two: Confirm Your Financial Position
Set a budget based on your personal financial capacity. Beyond the purchase price, buyers should also budget for roughly 3-6% Buyer’s Stamp Duty (BSD) on the purchase price plus 60% Additional Buyer’s Stamp Duty (ABSD) for foreign buyers — together well over 60% of the property price for most foreign buyers — plus legal fees and other costs.
Step Three: Engage an Agent and a Lawyer
Engage a property agent and lawyer based on your needs. Singapore property agent fees are typically around 1% of the transaction price. A qualified lawyer must also be appointed to handle the purchase process.
Step Four: Choose Your Property
Step Five: Pay the Deposit
Once you’ve chosen a suitable property, you sign an option to purchase and pay a deposit. New developments generally require a deposit equal to 5% of the purchase price, payable to the developer; a resale property requires a deposit equal to 1% of the purchase price, payable to the seller.
Step Six: Sign the Sale and Purchase Agreement (SPA)
Within 14 days of signing the option to purchase, the buyer receives the developer’s Sale and Purchase Agreement (S&P). Once signed, the buyer pays the remainder of the down payment.
Step Seven: Complete Payment
Buyers can pay the remaining balance in stages via mortgage financing, personal funds, or other means.
Step Eight: Complete the Transaction
On completion day, the buyer’s lawyer pays all outstanding funds to the seller’s lawyer, the seller’s lawyer transfers the property into the buyer’s name, and keys, access cards and other relevant items are handed over — payment and property change hands together.
Costs Related to Buying Property in Singapore as a Foreigner
Beyond the purchase price itself, the main costs of buying property in Singapore include various taxes, legal fees, valuation fees, mortgage-related costs, agent commission and maintenance costs. As a foreigner, buying property in Singapore comes with property-type restrictions and also different fees and taxes than for a local buyer.
Tax
First, buying property in Singapore requires stamp duty: Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD).
Buyer’s Stamp Duty (BSD)
BSD is calculated progressively based on the transaction price or market value, whichever is higher. Under BSD rules, the first S$180,000 of the price is taxed at 1%, the next S$180,000 at 2%, and the next S$640,000 at 3%. Working through the math, on an S$1,000,000 property, BSD comes to about S$24,600. BSD applies to everyone buying property in Singapore, whether a citizen, permanent resident, or foreigner.
BSD rates below took effect February 15, 2023:
| Property Price | Residential Property Buyer’s Stamp Duty |
|---|---|
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Next $1,500,000 | 5% |
| Above $3,000,000 | 6% |
Additional Buyer’s Stamp Duty (ABSD)
Foreigners buying residential property in Singapore, whether or not it is their first purchase, must pay ABSD equal to 60% of the purchase price (effective from 27 April 2023; the rate was 30% before that date).
Under free trade agreement provisions, citizens or permanent residents of the United States, Switzerland, Iceland or Liechtenstein can be exempted from this additional stamp duty.
Property Tax
Singapore’s property tax is an annual tax on owners, split mainly into rates for owner-occupied and non-owner-occupied property. The rate rises with the property’s value: from 1 January 2025, owner-occupied rates run 0%-32% (progressive, based on Annual Value bands starting at $12,000), while non-owner-occupied rates run 12%-36%; renting out, leaving vacant, or lending the property to someone else all count as non-owner-occupied.
Income Tax
The sale of a property generally only draws tax for individuals deemed to be trading/speculating; ordinary property sale gains are treated as capital gains and are not taxed. Whether a sale counts as trading/speculation is assessed by Singapore’s tax authority based on factors including the frequency and reason for the transaction, financing methods used, and how long the asset was held.
Mortgage Financing
Overseas buyers can also apply for a mortgage to buy property in Singapore. It’s advisable for overseas buyers to get bank loan pre-approval before paying a deposit, to avoid the risk of the loan being rejected or the approved amount being reduced.
Bank mortgages generally come in three types:
- Pegged to a benchmark rate
- Pegged to the bank’s internal rate
- Fixed rate
The first two are floating-rate loans; the third carries the highest rate. Singapore’s lending rates tend to follow US rates, and it’s advisable to consult a mortgage advisor to choose the best plan. Banks can lend a foreign buyer up to 75% of the purchase price (loan-to-value ratio) for a first Singapore private-property loan, falling to 45% and 35% respectively if the borrower already has one or two other outstanding housing loans. Singapore’s maximum mortgage term is 35 years, or until the oldest borrower on the loan reaches age 75, whichever is shorter.
Down Payment
Foreigners need to pay a minimum cash down payment of 25%, with the exact amount depending on the loan-to-value ratio approved by the bank or financial institution; generally, a foreign buyer can get a mortgage of up to about 75% of the price for a first home loan, meaning a down payment of about 25%.
If you don’t plan to apply for a mortgage, you also don’t need to pay the full amount upfront — you can pay according to construction progress. For example, if the chosen property already has its foundation and concrete structure completed, the down payment portion would be 40%.
Legal Fees
The purchase process in Singapore must go through a lawyer. Legal fees are charged based on whether the property is off-plan or completed, and its price; generally, a law firm’s fees run about S$2,500 to S$3,000.
Points Foreign Buyers Should Note When Buying Property in Singapore
What should foreigners know before buying property in Singapore?
- Buying property in Singapore does not equal immigration — you generally buy from a developer or a private seller, while permanent residency is a separate matter decided by the Singapore government. That said, owning property in Singapore can add points in a permanent residency application, and can act as a stepping stone toward immigration.
- Overseas buyers don’t need to be physically present to buy property in Singapore. They can sign documents at a notarized/certified law firm locally or at a Singapore embassy, or use a lawyer to arrange a Power of Attorney (POA), authorizing a relative or friend in Singapore to conduct the transaction on their behalf.
- Singapore property is measured and priced by usable floor area, so what you’re quoted is what you get at handover — for example, a 100-square-meter unit is delivered as 100 square meters. This means that for the same stated size, a Singapore unit’s actual usable area tends to be larger than in Hong Kong or mainland China.
- In Singapore, developers are tightly regulated by the government — a developer must obtain a housing plan permit and a housing developer’s sales license before starting to sell a residential project.
All transaction information and prices for Singapore property can be checked on government websites, giving the process high transparency. A number of rules also protect buyers of properties still under construction.
- Common payment methods for buying property in Singapore include cheque, bank draft or bank wire transfer. Cash or credit cards are not accepted.
Have a question about this guide? Leave a comment below, or ask Zagdim directly.
Your first stop for international property and global living.
Research and insights. Know what’s changing. Understand what matters.
