Authored by the expert who managed and guided the team behind the Singapore Property Pack
Everything you need to know before buying real estate is included in our Singapore Property Pack
Singapore's property market continues to attract international buyers in 2025, but navigating the rules can be complex.
With the Additional Buyer's Stamp Duty (ABSD) for foreigners now at 60%, understanding what you can buy and the total costs involved is crucial before making any investment decision.
If you want to go deeper, you can check our pack of documents related to the real estate market in Singapore, based on reliable facts and data, not opinions or rumors.
As a foreigner in Singapore, you can freely purchase private condominiums and commercial properties, but you cannot buy HDB flats or landed properties (except in Sentosa Cove with approval).
The biggest challenge is the 60% Additional Buyer's Stamp Duty (ABSD) that applies to all foreign buyers, which means a S$2 million property will actually cost you S$3.2 million including all taxes and fees.
| Property Type | Can Foreigners Buy? | Key Restrictions | Typical Price Range |
|---|---|---|---|
| Private Condos | ✓ Yes (freely) | None | S$1-5M+ |
| Landed Homes | ✗ No (except Sentosa Cove) | Requires LDAU approval | S$3-10M+ |
| HDB Flats | ✗ No | Only for citizens/PRs | N/A |
| Executive Condos | ✓ Yes (after 10 years) | Must be privatized | S$1.2-2M |
| Commercial Property | ✓ Yes (freely) | None | Varies |
| Total Taxes | 60% ABSD + BSD | Non-negotiable | 61-64% of price |
What types of property can foreigners actually buy in Singapore in 2025?
As a foreigner in Singapore, you can freely purchase private condominiums and apartments without any government approval.
This represents about 80% of properties available to foreign buyers. You can also buy commercial properties (offices, retail spaces) with no restrictions. These property types form the backbone of foreign investment in Singapore's real estate market, with private condos being particularly popular due to their facilities, security, and investment potential.
However, you cannot buy HDB flats (Singapore's public housing), landed properties (bungalows, terrace houses, semi-detached houses), or Executive Condominiums less than 10 years old. These restrictions are in place to ensure adequate housing for Singapore citizens and permanent residents. The government maintains these policies to balance foreign investment with local housing needs.
The only exception for landed properties is Sentosa Cove, where foreigners can purchase landed homes with approval from the Land Dealings Approval Unit (LDAU). This exclusive enclave was specifically designated to allow foreign ownership of landed properties, making it unique in Singapore.
Understanding these distinctions is crucial for foreign buyers to focus their property search on eligible options and avoid wasting time on restricted property types.
Are there different rules for different nationalities?
Singapore applies the same property ownership rules to all foreigners regardless of nationality.
Whether you're from the United States, China, India, or any other country, you face identical restrictions and the same 60% ABSD rate. This uniform approach reflects Singapore's commitment to fair and transparent policies in its real estate market. There are no special bilateral agreements or preferential treatments based on country of origin.
The only distinction Singapore makes is between Singapore Citizens (most privileges), Permanent Residents (PRs) who have some additional options like resale HDB after 3 years, and Foreigners (all non-citizens/non-PRs). This three-tier system is designed to prioritize housing for those with stronger ties to Singapore while still allowing foreign investment in the private property market.
This equal treatment means that all foreign buyers need to plan for the same costs and restrictions, regardless of their passport.
Do I need to be a resident or have a visa to buy property?
No, you don't need any visa or residency status to purchase property in Singapore.
You can buy as a tourist or non-resident, which makes Singapore relatively accessible for international property investors. This policy allows for global investment in Singapore's property market without requiring buyers to establish residency first. Many foreign buyers purchase property while visiting Singapore on business or tourism trips.
However, having local ties can help with securing better mortgage terms, building credit history with Singapore banks, and understanding the local market better. Banks may offer more favorable loan conditions to Employment Pass holders or those with established income sources in Singapore. Additionally, being present in Singapore makes the property viewing and transaction process more convenient.
It's something we develop in our Singapore property pack.
What's the complete step-by-step process to buy property as a foreigner?
The property purchase process in Singapore is well-regulated and typically takes 12-16 weeks from initial offer to completion.
First, you'll need 1-2 weeks for financial planning, including calculating your budget with the 60% ABSD, getting In-Principle Approval (IPA) from a Singapore bank, and preparing documents like your passport, income proof, bank statements, and employment letter. This preparation phase is crucial for understanding your true purchasing power.
| Phase | Timeline | Key Activities | Important Notes |
|---|---|---|---|
| Financial Planning | 1-2 weeks | Budget calculation, IPA application, document preparation | Include 60% ABSD in calculations |
| Property Search | 2-4 weeks | Agent engagement, viewings, due diligence | Use CEA-registered agents only |
| Making an Offer | 1-3 days | Submit LOI, negotiate, sign OTP | 1% booking fee required |
| Legal Process | 2-3 weeks | Lawyer appointment, title search, contract review | Exercise OTP within 14 days (4% payment) |
| Financing | 3-4 weeks | Finalize mortgage, property valuation, loan approval | 25% minimum down payment for foreigners |
| Completion | 8-12 weeks from OTP | Final payments, stamp duties, legal transfer | 60% ABSD due at completion |
The entire process requires careful coordination between your property agent, lawyer, and bank to ensure smooth completion.
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Is a lawyer required and what do they charge?
Yes, hiring a conveyancing lawyer is mandatory for all property transactions in Singapore.
You cannot complete a purchase without one, as the legal requirements and documentation are complex and strictly regulated. The lawyer acts as your legal representative throughout the transaction, ensuring all legal requirements are met and protecting your interests. They handle the intricate paperwork, coordinate with various parties, and ensure compliance with Singapore's property laws.
Lawyer's duties include conducting title searches to verify ownership, reviewing and explaining all contracts, calculating and paying stamp duties on your behalf, managing funds transfer between parties, registering the property transfer with authorities, and ensuring compliance with all regulations. They also advise on any legal issues that may arise during the transaction and help resolve any disputes.
Legal fees in 2025 typically range from S$1,800 to S$3,000 depending on property value, transaction complexity, whether it's subsale or new launch, and additional services required. Some lawyers offer fixed-fee packages for straightforward transactions, while others charge based on the property value.
Choosing an experienced conveyancing lawyer familiar with foreign buyer transactions can help avoid costly mistakes and ensure a smooth purchase process.
Where do foreigners typically buy and why?
Foreign buyers in Singapore tend to concentrate their purchases in specific districts that offer international amenities and lifestyle options.
Orchard Road remains the top choice for many foreign buyers due to its status as Singapore's premier shopping district, central location, and prestige address. The area offers luxury condos with price ranges from S$2,500-4,500 per square foot. Marina Bay attracts investors seeking CBD proximity and iconic views, with high-end condos priced at S$2,300-4,000 per square foot.
Sentosa Cove is unique as the only place where foreigners can own landed homes (with approval), offering resort-style living with properties ranging from S$2,500-3,500 per square foot. Bukit Timah appeals to families due to its proximity to top international schools, established expat community, and green spaces, with family condos priced at S$1,800-2,500 per square foot.
River Valley offers a vibrant lifestyle with its proximity to Orchard, numerous dining options, and boutique condos priced at S$2,000-3,000 per square foot. These areas have developed strong international communities with amenities catering to expatriate needs.
Foreigners gravitate toward these areas for international schools (especially important for families), established expat communities, proximity to business districts, and lifestyle amenities that cater to international tastes.
What are current prices per square meter in prime areas?
Singapore's prime property prices reflect its status as a global financial center and continue to show resilience in 2025.
| Location | Per Square Foot | Per Square Meter | Typical 100sqm Unit |
|---|---|---|---|
| Core Central Region (Orchard/Marina) | S$2,334-4,500 | S$25,130-48,438 | S$2.5-4.8 million |
| Sentosa Cove | S$2,500-3,500 | S$26,910-37,674 | S$2.7-3.8 million |
| Rest of Central Region | S$1,800-2,166 | S$19,375-23,312 | S$1.9-2.3 million |
| Outside Central Region | S$1,300-1,742 | S$13,993-18,752 | S$1.4-1.9 million |
Prices in Singapore's prime districts have risen 3-4% in the first half of 2025, with luxury properties showing stronger growth than mass-market segments. The Core Central Region continues to command premium prices due to limited supply and sustained demand from both local and foreign buyers.
These price levels reflect Singapore's position as one of Asia's most expensive property markets, driven by land scarcity, economic stability, and consistent foreign investment interest.
What are all the taxes and fees foreigners must pay?
Foreigners face substantial upfront costs when buying Singapore property, with taxes that can exceed 60% of the purchase price.
The Buyer's Stamp Duty (BSD) applies tiered rates: 1% on the first S$180,000, 2% on the next S$180,000, 3% on the next S$640,000, and 4% on the remainder. Additionally, foreigners must pay a flat 60% Additional Buyer's Stamp Duty (ABSD) on the full purchase price, which is non-negotiable and due upfront.
For example, on a S$2 million condo purchase, you would pay S$64,600 in BSD and S$1,200,000 in ABSD, totaling S$1,264,600 in taxes alone (63.2% on top of the purchase price). This means your S$2 million property actually costs S$3,264,600. Other costs include legal fees (S$1,800-3,000), valuation fees (S$200-500), and potentially mortgage insurance.
It's something we develop in our Singapore property pack.
Understanding these costs upfront is crucial for proper financial planning and avoiding surprises during the transaction.
Can foreigners get mortgages and what are the terms?
Yes, foreigners can obtain mortgages from Singapore banks, but terms are stricter than for locals.
Key mortgage terms for foreigners in 2025 include a maximum Loan-to-Value (LTV) of 75% (often lower in practice), minimum down payment of 25% (must be cash, not CPF), interest rates of 2.5-2.75% (slightly higher than local rates), maximum loan tenure of 30 years or until age 65, and income requirements with typically 30-40% debt servicing ratio.
Required documents include a valid passport, employment pass or proof of income, 6 months of bank statements, income tax returns, and credit report from your home country. Banks like DBS, OCBC, and UOB actively lend to foreigners, but each has different criteria. Some require local employment, while others accept overseas income.
Banks assess foreign income differently and may apply haircuts to overseas earnings. Having local employment or business interests in Singapore significantly improves your chances of approval and better terms.
Working with a mortgage broker familiar with foreign buyer requirements can help navigate the application process and secure better terms.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Singapore versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What returns can foreigners expect from Singapore property?
Singapore property returns vary significantly by location and property type, with yields generally lower than regional markets but offering greater stability.
Rental yields by district in 2025 show prime districts (Orchard, Marina Bay) generating 2-3% gross yield, city fringe areas producing 3-3.5% gross yield, and suburban locations offering 3.5-4% gross yield. These yields are relatively modest compared to other Asian markets but reflect Singapore's status as a mature, stable market.
Singapore property has historically appreciated 3-5% annually over the long term. For 2025, analysts project 5-7% growth in the prime luxury segment, 3-5% growth for mass market condos, and 3-4% growth for the overall market. These projections reflect continued demand from both local upgraders and foreign investors despite cooling measures.
Important considerations include the fact that the 60% ABSD significantly impacts ROI calculations, Singapore property is better suited for wealth preservation than high returns, and currency appreciation (SGD strength) can boost returns for foreign investors holding other currencies.
Investors should view Singapore property as a long-term wealth preservation tool rather than a high-yield investment.
What mistakes do foreigners commonly make?
Understanding common pitfalls can help foreign buyers avoid costly mistakes in Singapore's property market.
The biggest mistake is underestimating the 60% ABSD impact. Many calculate returns without factoring this massive upfront cost. For example, a S$2M property actually costs S$3.2M with taxes, dramatically affecting investment returns. This miscalculation can turn a seemingly profitable investment into a loss-making venture.
Not engaging qualified professionals is another critical error. Using unlicensed agents or skipping legal advice can lead to missing critical contract terms or restrictions. Singapore's property market is highly regulated, and professional guidance is essential for navigating the complexities.
Many buyers ignore additional ownership costs like monthly maintenance fees (S$300-800), annual property tax (0.4-0.6% of annual value), and sinking fund contributions. These ongoing costs can significantly impact net rental yields. Poor financing structure, such as not shopping around for best mortgage rates or overleveraging without considering forex risks, can also create financial strain.
Having no exit strategy is particularly problematic as Singapore property can be illiquid during downturns, and many buyers don't understand resale restrictions or market cycles.
It's something we develop in our Singapore property pack.
How does Singapore compare to other global property markets?
Singapore stands out globally for having the highest foreign buyer taxes while offering exceptional stability and transparency.
| Metric | Singapore | Hong Kong | London | New York |
|---|---|---|---|---|
| Foreign Ownership | Restricted (condos only) | Mostly unrestricted | Unrestricted | Unrestricted |
| Stamp Duties | 60% ABSD + BSD | 15-30% | 2-15% | 1-4% |
| Market Transparency | Very High | High | High | High |
| Political Stability | Exceptional | Moderate | High | High |
| Rental Yields | 2-3.5% | 2-3% | 3-4% | 3-5% |
| Price/sqm (prime) | S$25-48k | S$50k+ | S$30-60k | S$35-65k |
| Mortgage Access | Available but strict | Available | Easy | Easy |
While Singapore property is expensive for foreigners due to the 60% ABSD, it offers unmatched stability, transparency, and long-term value preservation. The Singapore property market is less volatile than Hong Kong, more regulated than London or New York, but also more restrictive and expensive for foreign entry. This combination makes it attractive for wealth preservation rather than speculative investment.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Singapore's property market offers foreign investors a unique combination of stability and growth potential, but the 60% ABSD fundamentally changes the investment equation.
Success requires thorough planning, professional guidance, and realistic expectations about returns after factoring in all costs. While expensive to enter, Singapore property remains attractive for long-term wealth preservation in one of Asia's most stable markets.
Sources
- PropertyGuru Singapore - Guide for Foreign Property Buyers
- SingSaver - Can Foreigners Buy Property in Singapore
- HMLF - Singapore Foreign Property Laws Guide
- Instarem - Foreigners Buying Property in Singapore
- Singapore Land Authority - Foreign Ownership Regulations
- IRAS - Additional Buyer's Stamp Duty
- DollarBack Mortgage - Property Costs Guide
- Bamboo Routes - Singapore Property Price Forecasts
- PLB Insights - Singapore Property Forecast 2025
- Expatica - Singapore Mortgage Guide