As one of the world’s financial centers, Singapore is home to the Asian headquarters of many multinational corporations. Consequently, many Americans work, live, settle, and retire in Singapore. Additionally, many parents send their children to study in Singapore or immigrate with their entire families.
Whether you are working, living, or studying in Singapore, after a certain period, you will likely consider buying a property. After all, Singapore boasts a great environment, a developed economy, stable property prices, and some of the lowest mortgage rates globally. Buying here is often seen as a sound investment. Besides personal use, a property can be rented out or sold after a period, serving as a dual-purpose long-term investment.
Basically, most Americans in Singapore who are able to buy a home will choose to do so as soon as possible. So, can Americans buy property in Singapore? What conditions must be met? How much does it cost to buy a house? Can you get a loan? What are the interest rates? Today, as a senior local real estate agent in Singapore, I will answer these questions for you one by one.
Table of Contents
Can Americans Buy Property in Singapore?
The most direct answer is: yes.
Singapore is a very inclusive immigrant nation, with 74.3% of its population being of Chinese descent. This means that about 3 out of every 4 Singaporeans are Chinese, making it the only country outside of mainland China with a majority ethnic Chinese population.
The Singapore government encourages people from all over the world to work, study, and settle here, and thus allows Americans to purchase property in Singapore. However, compared to Singapore Citizens and Permanent Residents (PRs), there are some restrictions on Americans buying property in Singapore.
What are the Restrictions for Americans Buying Property in Singapore?
There are only two types of properties that Americans can choose to buy in Singapore:
- Private condominiums
- Landed properties in Sentosa Cove
Singapore is a land-scarce country. To stabilize housing prices and ensure that its own citizens can afford to buy homes, marry, and start families, the government provides a lot of policy support for Singaporeans, such as building affordable public housing (HDB flats) and restricting the types of properties that Americans can purchase. Apart from landed properties in Sentosa Cove, Americans can only buy private condominiums.
How Much Does it Cost for an American to Buy a Home in Singapore?
If you are planning to buy a private condominium in Singapore, how much money should you prepare?
Although Singapore is small, it is divided into 28 districts. Property prices can vary significantly between different districts. When choosing a property, you can select condominiums in different price ranges based on your budget.
Generally, condominiums in Districts 1-7, 9, 10, 11, and 15 are more expensive, as most multinational corporations, universities, and traditional affluent areas are concentrated in these districts. The table below shows the average prices for condominiums in these areas:
| District | Average Price (SGD) | Average Price (RMB) |
| District 1 | SGD 2,531/sqft | RMB 146,571/sqm |
| District 2 | SGD 2,646/sqft | RMB 153,231/sqm |
| District 3 | SGD 2,835/sqft | RMB 164,176/sqm |
| District 4 | SGD 2,593/sqft | RMB 150,161/sqm |
| District 5 | SGD 2,220/sqft | RMB 128,561/sqm |
| District 6 | SGD 2,974/sqft | RMB 172,225/sqm |
| District 7 | SGD 3,095/sqft | RMB 179,232/sqm |
| District 9 | SGD 3,049/sqft | RMB 176,569/sqm |
| District 10 | SGD 2,999/sqft | RMB 173,673/sqm |
| District 11 | SGD 2,964/sqft | RMB 171,646/sqm |
| District 15 | SGD 2,460/sqft | RMB 142,459/sqm |
1 SGD converts to 5.38 RMB
If you work in Singapore, you can check the condominium prices near your workplace. If the average price exceeds your budget, you can consider adjacent neighborhoods or more distant communities with good transport links. If you are studying in Singapore or have sent your child here for school, choosing a condominium near an international school would be the most convenient option.
Of course, the prices above are just averages. Prices will vary based on location, amenities, and developer. You can choose a trustworthy local real estate agent to provide you with more detailed information on districts and projects; they can usually help you find the most suitable property.
Can Americans Get a Loan to Buy Property in Singapore?
Americans can get a loan to buy property in Singapore, and they can borrow up to 75% of the property value.
How are Taxes Calculated for Americans Buying Property in Singapore?
Singapore and the United States have signed a Free Trade Agreement (FTA), which means that US citizens are taxed in the same category as Singapore citizens when buying property in Singapore.
If your property purchase price is below SGD 1 million, the tax payable is 3%* of the property price (3% Buyer’s Stamp Duty).
If your property purchase price is between SGD 1 million and SGD 1.5 million, the tax payable is 4%* of the property price (4% Buyer’s Stamp Duty).
If your property purchase price is between SGD 1.5 million and SGD 3 million, the tax payable is 5%* of the property price (5% Buyer’s Stamp Duty).
If your property purchase price is above SGD 3 million, the tax payable is 6%* of the property price (6% Buyer’s Stamp Duty).
*⚠️Note: Applies only to the purchase of the first residential property.
What is the Down Payment for Americans Buying Property in Singapore?
In most cases, if you opt for a loan and can secure 70% financing from the bank, the down payment for a condominium will be 30%, calculated based on the loan-to-value (LTV) ratio.
What are the General Steps for an American to Buy Property in Singapore?
If you are buying a new property in Singapore, you will need to follow these steps:
- On the day of booking: Pay 5% of the purchase price (as a deposit).
- Within 1-2 weeks: The developer sends the Sale and Purchase Agreement (S&P) to the law firm.
- Within 3 weeks of receiving the S&P: Apply for a loan and sign the documents at the law firm.
- Within 2 weeks of signing the S&P: The buyer must pay the Buyer’s Stamp Duty.
- Within 8 weeks of booking: Pay 15% of the purchase price.
- Make subsequent payments according to the construction progress.
If you are buying a resale property in Singapore, you will need to follow these steps:
- Choose a property you are satisfied with (through a real estate agent or property portal).
- Contact the seller to negotiate and agree on a price.
- Pay a 1% deposit.
- Apply for a loan from a bank.
- Pay a 4% down payment within the next 14 days.
- Sign the Sale and Purchase Agreement.
- On the completion date, pay the remaining purchase price minus the home loan amount.
- The property is transferred to your name.
Can I complete the property purchase if I am not in Singapore?
Yes. American buyers can sign documents at a local law firm that provides notarization/authentication services (Notary Public) or at the Singapore Embassy. American buyers can also arrange for a Power of Attorney (POA) through a lawyer, authorizing a relative or friend in Singapore to represent them in the property transaction.
Can You Immigrate to Singapore by Buying Property?
Buying property in Singapore does not equate to immigration. Property is generally purchased from developers or private sellers, whereas permanent residency is a matter for the Singapore government. Therefore, buying property is not a direct route to immigration. However, owning property in Singapore can help strengthen a Permanent Resident (PR) application, serving as a stepping stone for immigration to Singapore.
Can You Buy Property for an American-born Child via a Trust?
Yes. In Singapore, a house is often more than just a home; many people also view property acquisition as a form of long-term investment. Although children (i.e., persons under 21) do not have the legal capacity to own property in their own name, their parents can still purchase property for them through a trust. By doing so, the child can be the beneficial owner of the corresponding property.
Conclusion
It is quite common for Americans to buy property in Singapore. Many who work or study here choose to purchase their own homes. On one hand, it can be used for personal residence during their time in Singapore. On the other hand, if not owner-occupied, it can be rented out or sold, making it a very good investment.
- All Your Questions Answered Before Buying a Home in Singapore
- Should You Invest in Freehold or 99-Year Leasehold Property in Singapore?
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