Can Foreigners Buy Residential Property in Singapore?

Yes, but with restrictions.

Foreigners can purchase residential properties in Singapore, but not all property types are open to them. The Singapore government has strict laws to safeguard local housing for its citizens and permanent residents.

Types of Properties Foreigners Can Buy

Here’s a breakdown of property types and the accessibility for foreigners:

1. Private Condominiums

Foreigners are allowed to purchase private condominiums without prior approval. These are the most common choice for foreign buyers because they are well-located and come with lifestyle facilities like pools, gyms, and 24/7 security.

Key Benefits:

No need for government approval
Available across the island
Strong resale and rental value

2. Executive Condominiums (ECs)

Foreigners can buy ECs only after the Minimum Occupation Period (MOP) of 10 years. Before that, these are restricted to Singaporeans and PRs.

3. Landed Property

Foreigners cannot purchase landed property (such as bungalows, semi-detached, and terrace houses) unless they get approval from the Singapore Land Authority (SLA).

Approval is rarely granted unless the buyer has made exceptional contributions to Singapore’s economy.

4. HDB Flats

Foreigners are not eligible to buy HDB flats, except under special schemes (like Singaporean-foreigner married couples under the Non-Citizen Spouse Scheme). These flats are heavily subsidized for Singaporeans and not meant for foreign ownership.

Applying for Permission (For Restricted Property)

If you're looking to buy a landed property or a cluster home in a restricted zone, you’ll need to apply through the Land Dealings Approval Unit (LDAU).

Requirements:

Must be a permanent resident (PR) for at least 5 years
Significant economic contribution to Singapore
Valid reasons for owning the property

Approval is not guaranteed, and the process can take several months.

Additional Buyer’s Stamp Duty (ABSD)

When foreigners buy residential property in Singapore, they must pay Additional Buyer’s Stamp Duty (ABSD) in addition to the regular Buyer’s Stamp Duty (BSD).

As of 2024, ABSD Rates:

Foreigners: 60% of the property purchase price or market value (whichever is higher)

This high rate is aimed at curbing speculation and maintaining affordability for locals. It significantly increases the upfront cost of investment for foreign buyers.

Financing Your Property Purchase

Foreigners can apply for home loans in Singapore, but the Loan-to-Value (LTV) ratio might be lower than for citizens or PRs.

Common Loan Conditions:

Downpayment of at least 25%
Proof of income and employment
Subject to Total Debt Servicing Ratio (TDSR) rules

It’s advisable to get a loan approval in principle before starting your property search.

Legal Process for Foreigners Buying Property

Here’s a simplified step-by-step guide:

Step 1: Hire a Property Agent

A local property agent familiar with the rules for foreigners can help you identify suitable listings and negotiate deals.

Step 2: Get Loan Pre-Approval

Secure a mortgage offer from a local bank if needed.

Step 3: Choose a Property

Select from condominiums or ECs (older than 10 years). Ensure it's within your budget after taxes.

Step 4: Sign the Option to Purchase (OTP)

Pay a 1% option fee to the seller. You’ll typically have 14 days to exercise the OTP.

Step 5: Hire a Lawyer

A local conveyancing lawyer will handle due diligence and ensure the title is clean.

Step 6: Pay Stamp Duties

Pay both BSD and ABSD within 14 days of signing the Sales & Purchase Agreement.

Step 7: Complete the Sale

Transfer the remaining funds, register the title, and officially take possession.

Popular Areas for Foreign Property Buyers

1. Orchard Road / District 9

Luxury condos, upscale shopping, and proximity to embassies and international schools.

2. Sentosa Cove

The only area where foreigners can buy landed property (with approval). Offers waterfront villas and a resort lifestyle.

3. Holland Village / District 10

Expats love the blend of local culture and international amenities.

4. Marina Bay

Ideal for business professionals looking for a live-work-play environment in the CBD.

Tips for Foreign Buyers

Use reputable real estate agents: Singapore has many agents with experience handling foreign investments.
Understand your tax obligations: Besides ABSD, you may have tax liabilities in your home country.
Plan long-term: Consider the high entry costs and plan to hold the property for a few years.
Monitor market trends: Singapore’s property market is stable but cyclical. Buy during dips for best returns.

Final Thoughts

Singapore remains one of the safest and most desirable places in Asia to own real estate. While there are restrictions and taxes in place for foreigners, opportunities still exist—especially in the private condominium market. If you do your research, follow the legal process, and work with qualified professionals, buying residential property in Singapore as a foreigner can be a rewarding investment.