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Everything you need to know before buying real estate is included in our Singapore Property Pack
Singapore's property market offers lucrative opportunities for foreign investors, but navigating the strict regulations and high taxes requires careful planning. As of June 2025, foreigners face a 60% Additional Buyer's Stamp Duty (ABSD) on property purchases, making it essential to understand exactly what you can buy and how to maximize your investment.
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.
Foreigners can purchase private condominiums and apartments in Singapore without restrictions, but face a 60% ABSD tax and cannot buy HDB flats or most landed properties.
The entire purchase process can be completed remotely through a Power of Attorney, with typical mortgage rates around 2.5-2.75% as of June 2025.
| Aspect | Details | Key Consideration |
|---|---|---|
| Property Types Allowed | Private condos, apartments, Sentosa Cove landed | No HDB flats or mainland landed property |
| ABSD Tax | 60% of purchase price | US citizens exempt from ABSD |
| Mortgage Access | Up to 75% LTV ratio | Stricter criteria than locals |
| Average Condo Price | S$1.99 million | Core Central Region: S$2.95M |
| Rental Yields | 3.7% - 4.8% | City fringe offers best balance |
| Legal Requirements | No visa/PR needed | Lawyer highly recommended |
| Exit Costs | SSD if sold within 3 years | 12% if sold within first year |
What property types can I buy in Singapore as a foreigner, and how is it different from locals?
As a foreigner, you can freely purchase private condominiums and apartments anywhere in Singapore without needing prior approval.
You're also allowed to buy strata-landed homes within approved condominium developments and Executive Condominiums (ECs) that have been fully privatized after 10 years. Additionally, you can purchase landed properties in Sentosa Cove with Singapore Land Authority (SLA) approval.
However, you absolutely cannot buy HDB flats (public housing) whether new or resale, and you cannot purchase landed properties like bungalows, semi-detached, or terrace houses outside of Sentosa Cove unless you obtain special SLA permission, which is rarely granted to foreigners.
In contrast, Singapore citizens have no restrictions and can buy any property type. Permanent Residents (PRs) enjoy more options than foreigners, including resale HDB flats after three years as a PR, resale ECs after five years, and all types of private property without restrictions.
The main difference is that foreigners pay a 60% Additional Buyer's Stamp Duty (ABSD) on all purchases, while citizens pay 0-30% and PRs pay 5-35% depending on the number of properties owned.
Do I need permanent residency or a special visa to buy property in Singapore?
No, you don't need permanent residency or any specific visa to purchase private property in Singapore as a foreigner.
Singapore's property market is remarkably open to foreign investment when it comes to private residential properties. Whether you're on a tourist visa, employment pass, or even residing outside Singapore, you can legally buy private condominiums and approved properties.
However, having PR status significantly expands your options, particularly for public housing and Executive Condominiums. PRs can access the resale HDB market after meeting certain criteria and can purchase ECs after five years from their completion date.
The key requirement for foreigners isn't residency status but rather having sufficient funds to cover the purchase price, the 60% ABSD, and meeting bank lending criteria if you need a mortgage.
Can I complete the entire purchase remotely, or must I be physically in Singapore?
You can complete the entire property purchase remotely without being physically present in Singapore.
The Singapore property market accommodates international buyers through a Power of Attorney (POA) system. You'll need to appoint a trusted representative, typically your property lawyer, who can sign documents and complete transactions on your behalf.
Your appointed lawyer can handle all aspects including signing the Option to Purchase, exercising the option, completing stamp duty payments, and finalizing the sale and purchase agreement. All legal documents can be signed electronically or through your POA.
Some banks may initially prefer in-person verification for mortgage applications, but many have adapted to remote processes, especially for established international clients. You might need to provide certified documents and complete video verification calls.
The only time physical presence might be advantageous is during initial property viewings, though even these can be conducted virtually through video tours arranged by your property agent.
What's the complete step-by-step process for foreigners buying Singapore property?
The property purchase process in Singapore follows a structured sequence that typically takes 8-12 weeks from start to completion.
First, engage a licensed property agent through platforms like PropertyGuru or CEA's public register. While optional, agents help navigate the market and ensure you're viewing legitimate properties. Next, search for suitable private condominiums or approved properties within your budget, remembering to factor in the 60% ABSD.
Once you've found a property, secure an Option to Purchase (OTP) by paying an option fee of 1% of the purchase price. This gives you exclusive rights to buy the property for 14-21 days. During this option period, arrange your financing by obtaining in-principle approval from local banks like DBS, OCBC, or UOB.
Hire a conveyancing lawyer to handle legal due diligence, review contracts, and ensure regulatory compliance. Exercise the OTP within the option period by paying the remaining 4% of the deposit. Your lawyer will then prepare the Sale & Purchase Agreement.
Within 14 days of exercising the option, pay both Buyer's Stamp Duty (BSD) and the 60% Additional Buyer's Stamp Duty (ABSD). Your lawyer will handle the stamp duty submission and payment process. Complete the sale on the agreed completion date, typically 8-12 weeks after exercising the option, when the balance purchase price is paid and ownership is transferred.
| Document Required | Purpose | When Needed |
|---|---|---|
| Passport/ID | Identity verification | Throughout process |
| Proof of income | Mortgage application | During option period |
| Bank statements (6 months) | Financial assessment | For loan approval |
| Option to Purchase | Property reservation | Initial agreement |
| Power of Attorney | Remote transaction | If buying remotely |
| Sale & Purchase Agreement | Final contract | After exercising option |
| Stamp duty receipts | Tax compliance | Within 14 days of exercise |
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Is hiring a property lawyer or agent mandatory, and how do I find trustworthy ones?
Neither property lawyers nor agents are legally mandatory for purchasing property in Singapore, but hiring both is strongly recommended for foreigners.
While you can technically complete a property transaction yourself, the complexity of Singapore's property laws, especially the Residential Property Act restrictions on foreign ownership, makes professional assistance invaluable. Lawyers ensure compliance with regulations, conduct title searches, and protect you from costly mistakes that could invalidate your purchase.
Property agents, though optional, provide crucial market knowledge, negotiate better prices, and verify property legitimacy. They're particularly valuable for understanding local pricing trends and identifying properties with strong rental potential.
To find reputable professionals, use the Council for Estate Agencies (CEA) public register for licensed agents, checking their transaction history and any disciplinary records. For lawyers, seek firms specializing in conveyancing through the Law Society of Singapore or get referrals from your bank.
It's something we develop in our Singapore property pack.
Which Singapore neighborhoods are most popular with expats and foreign investors?
Singapore's expat-friendly neighborhoods cluster primarily in the Core Central Region (CCR) and Rest of Central Region (RCR), each offering distinct advantages.
Holland Village stands out as the top choice for families, combining a village atmosphere with international schools, trendy cafes, and excellent MRT connectivity. Rental yields here average 3.5-4% with strong tenant demand from both expats and locals.
Orchard Road and River Valley attract professionals and investors seeking prestige addresses. These areas command premium prices averaging S$3,500 per square foot but offer lower yields around 3% due to high capital values. However, they provide excellent long-term appreciation potential.
Marina Bay represents modern luxury living with spectacular views and proximity to the CBD. Properties here appeal to high-net-worth individuals and corporate tenants, with new developments like Marina One Residences achieving consistent 3.5% yields.
For better yields, consider Newton, Novena, and Bukit Timah, which offer 4-4.5% returns while maintaining expat appeal through proximity to international schools and country clubs. Sentosa Cove remains the only option for foreigners seeking landed property, though prices have stabilized after years of decline.
Which areas currently offer the best investment returns and rental yields?
As of June 2025, Singapore's city fringe areas in the Rest of Central Region (RCR) consistently deliver the best balance of rental yields and capital appreciation.
Districts 14 and 15 (Eunos, Paya Lebar, Marine Parade) lead with rental yields of 4.3-4.8%, particularly developments like Euhabitat and The Interlace. These areas benefit from ongoing infrastructure improvements and proximity to business parks, attracting both local and expat tenants.
The Outside Central Region (OCR) offers even higher yields reaching 5% in areas like Tampines and Jurong, though capital appreciation potential is more moderate. These suburban locations appeal to families and offer larger units at lower quantum prices.
For capital appreciation, Districts 9, 10, and 11 remain strong performers despite lower yields. Properties here appreciated 15-20% over the past three years, driven by limited supply and sustained demand from ultra-high-net-worth individuals.
| Location | Avg Rental Yield | 3-Year Appreciation | Tenant Profile | Investment Outlook |
|---|---|---|---|---|
| City Fringe (RCR) | 4.0-4.8% | 12-15% | Young professionals | Best overall returns |
| Orchard/River Valley | 2.8-3.5% | 15-20% | Expat executives | Capital growth focus |
| Marina Bay | 3.0-3.5% | 10-12% | Financial professionals | Stable premium market |
| East Coast | 3.5-4.0% | 8-10% | Families | Balanced returns |
| Jurong/Clementi | 4.5-5.0% | 5-8% | Local professionals | High yield play |
What are current property prices by district, and how have they changed?
Singapore's residential property prices show significant variation across regions, with Core Central Region (CCR) properties commanding substantial premiums.
As of June 2025, the average condominium price across Singapore stands at S$1.99 million, representing a 4.4% year-on-year increase. CCR condominiums average S$2.95 million at S$2,335 per square foot, while Rest of Central Region (RCR) properties average S$2.11 million at S$2,166 psf.
Outside Central Region (OCR) offers more affordable options averaging S$1.65 million at S$1,742 psf. The price gap between CCR and OCR has widened to approximately S$600 per square foot, creating opportunities for value investors in suburban areas.
Landed properties remain exclusive, averaging S$5.34 million islandwide, with CCR landed homes reaching S$10.17 million. The landed segment experienced price softening in late 2024, declining 2.8% quarter-on-quarter, presenting potential entry opportunities for qualified buyers.
Looking at specific districts, District 10 (Tanglin/Holland) leads at S$2,800-3,200 psf, while emerging areas like District 19 (Serangoon) offer value at S$1,600-1,900 psf with strong growth potential from ongoing urban renewal.
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.
Can foreigners get mortgages in Singapore, and what are typical terms?
Yes, foreigners can secure mortgages from Singapore banks, though terms are generally more restrictive than those offered to citizens and PRs.
Major banks including DBS, OCBC, UOB, Standard Chartered, and HSBC offer foreigner mortgage packages with loan-to-value (LTV) ratios typically capped at 75%. However, many banks impose lower limits of 60-70% for foreign borrowers, especially those without local income.
As of June 2025, floating mortgage rates hover around 2.5-2.75%, down from peaks of 4.5% in 2023. Fixed rates are slightly higher at 2.8-3.2% for the initial lock-in period. Market expectations suggest further rate decreases through 2025 as global monetary conditions ease.
Banks require extensive documentation including six months of bank statements, employment contracts, tax returns, and proof of other assets. Processing typically takes 2-4 weeks, longer for offshore applicants. Income requirements are stringent, with most banks requiring minimum monthly income of S$7,500-10,000 for foreigners.
Some banks offer specialized expatriate packages with features like multi-currency mortgages and grace periods for job transitions, recognizing the unique needs of foreign buyers.
What are all the taxes, fees, and charges when buying and selling property?
Foreign property buyers in Singapore face substantial upfront costs, with the 60% Additional Buyer's Stamp Duty (ABSD) being the most significant expense.
When purchasing, you'll pay Buyer's Stamp Duty (BSD) on a progressive scale: 1% on the first S$180,000, 2% on the next S$180,000, 3% on the next S$640,000, and 4-6% on amounts exceeding S$1 million. The 60% ABSD applies to the entire purchase price for all foreigners except US citizens, who are exempt under the US-Singapore Free Trade Agreement.
Additional buying costs include legal fees starting from S$2,000, valuation fees of S$200-400, and mortgage-related charges varying by bank. While agent commissions are typically paid by sellers, some buyer's agents may charge fees for specialized services.
When selling, you'll face Seller's Stamp Duty (SSD) if disposing within three years: 12% for sales within the first year, 8% within two years, and 4% within three years. Agent commissions range from 2-5% for private properties, while legal fees for sellers typically start at S$1,500.
- Buyer's Stamp Duty (BSD): Progressive rates from 1-6%
- Additional Buyer's Stamp Duty (ABSD): 60% for foreigners
- Legal fees: S$2,000-5,000 depending on transaction complexity
- Valuation fees: S$200-400
- Mortgage fees: Varies by bank, typically S$500-2,000
- Property tax: Annual charge based on property value
- Maintenance fees: S$300-1,500 monthly for condominiums
- Seller's Stamp Duty: 4-12% if selling within 3 years
- Agent commission (selling): 2-5% of sale price
- Moving and renovation costs: Variable
What mistakes do foreign buyers commonly make, and how can I avoid them?
The most costly mistake foreign buyers make is underestimating the true cost of ownership, particularly the 60% ABSD that adds S$600,000 to every S$1 million of property value.
Many foreigners assume they can purchase HDB flats or landed properties outside Sentosa Cove, wasting time viewing restricted property types. Always verify property eligibility before viewing, focusing exclusively on private condominiums and approved developments.
Failing to secure financing pre-approval leads to lost deposits and opportunities. Foreign buyers often discover too late that banks impose stricter lending criteria, lower LTV ratios, or reject applications entirely. Get in-principle approval before paying any option fees.
Overlooking exit costs proves expensive when circumstances change. The Seller's Stamp Duty of up to 12% combines with agent fees to create substantial losses if you need to sell within three years. Factor in a minimum five-year holding period when calculating returns.
Choosing properties based on personal preference rather than rental demand results in poor yields. Research actual rental transactions in your target area, not just asking rents. It's something we develop in our Singapore property pack.
Are there tax implications in Singapore or my home country?
Singapore offers favorable tax treatment for property investors with no capital gains tax on property sales, making it attractive for long-term appreciation strategies.
However, rental income is subject to Singapore income tax at progressive rates from 0-24%. Non-resident landlords face a flat 24% withholding tax on gross rental income, though tax treaties may reduce this rate. You'll need to file annual tax returns reporting all rental income.
Annual property tax applies based on the property's Annual Value (estimated annual rent). Owner-occupied rates are progressive from 0-32%, while non-owner-occupied properties face higher rates from 12-36%. A S$2 million condo might incur S$20,000-40,000 in annual property tax.
Your home country likely taxes worldwide income, requiring you to declare Singapore rental income and potentially the property value itself. Many countries have tax treaties with Singapore to prevent double taxation, but you'll need professional advice to optimize your tax position.
Some countries impose wealth taxes on foreign property holdings or require annual reporting of overseas assets exceeding certain thresholds. US citizens must file FinCEN Form 114 if foreign accounts exceed $10,000, which may include property-related accounts.
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 compelling opportunities for foreign investors who understand its unique dynamics and regulations.
While the 60% ABSD represents a significant hurdle, the country's political stability, strong rental demand, and absence of capital gains tax continue to attract international buyers. Success requires careful planning, professional guidance, and a long-term investment horizon of at least five years to optimize returns and minimize exit costs.
Sources
- PropertyGuru Singapore - Foreign Buyer Guide
- InstaReM - Foreigners Buying Property in Singapore
- Singapore Land Authority - Foreign Ownership Regulations
- IRAS - Additional Buyer's Stamp Duty
- SmartWealth - Singapore Average House Prices
- Global Property Guide - Singapore Price History
- Urban Redevelopment Authority - Property Market Updates
- DollarBack Mortgage - Foreigner Property Guide
- 99.co - Common Mistakes by Foreign Buyers
- BambooRoutes - Singapore Real Estate for Foreigners