With the full reopening of Singapore, more and more people are considering moving here to live. Among them are many who wish to buy a home directly in Singapore and have consulted us about Singapore’s property buying policies. Therefore, today we will provide a comprehensive analysis of Singapore’s property buying policies, hoping to help those interested in this topic.
Types of Property in Singapore and Purchase Restrictions
In Singapore, there are three main types of properties: HDB flats, non-landed private residences, and landed private residences. Non-landed private residences are further divided into private condominiums and Executive Condominiums (ECs). At the same time, there are three main forms of property tenure in Singapore: 99-year leasehold, 999-year leasehold, and freehold. According to government regulations, only Singapore Citizens are eligible to purchase new HDB flats, Executive Condominiums, and landed private properties.
Under certain conditions, Singapore Permanent Residents (PRs) are eligible to purchase resale HDB flats and Executive Condominiums. The specific eligibility criteria for resale HDB flats are as follows: 1) Must be at least 21 years old and have been a PR for at least 3 years, 2) If you are unmarried and buying with family members, at least one of them must be a Singapore Citizen or Singapore PR, 3) If you are buying as a PR household, all occupiers (family or co-owners) must have held PR status for at least three years. In other words, a single PR cannot purchase a resale HDB flat. Additionally, PRs wishing to buy a resale HDB flat cannot own any private property overseas.
Single PRs can purchase a resale Executive Condominium that has met its 5-year Minimum Occupation Period (MOP). This is because once an EC completes its MOP, it becomes semi-privatized and can be purchased by both Singapore Citizens and PRs.
For foreigners, property purchases in Singapore are limited to private condominiums and landed residences in Sentosa Cove.
Related Articles:
- A Foreigner’s Guide to Buying Property in Singapore
- All Questions Answered Before Buying a Home in Singapore
Buyer’s Stamp Duty and Additional Buyer’s Stamp Duty
Whether you are a Singapore Citizen, Permanent Resident, or foreigner, you are required to pay various types of taxes when purchasing property in Singapore. For buyers, the key taxes to understand are the Buyer’s Stamp Duty (BSD) and the Additional Buyer’s Stamp Duty (ABSD).
Regarding Buyer’s Stamp Duty, it must be paid to the government regardless of your status when buying property in Singapore. You can refer to the table below for details:
| Purchase Price or Market Value | Buyer’s Stamp Duty (Residential) |
| First S$180,000 | 1% |
| Next S$180,000 (i.e., S$180,001 to S$360,000) | 2% |
| Next S$640,000 (i.e., S$360,001 to S$1,000,000) | 3% |
| Amount exceeding S$1,000,000 | 4% |
As for the Additional Buyer’s Stamp Duty, it varies based on the buyer’s status and the number of residential properties owned. In December 2021, the Singapore government adjusted the ABSD rates. The specific rates can be found in the table below:
| Singapore Citizens | |
| First residential property | 0% |
| Second residential property | 17% |
| Third and subsequent residential property | 25% |
| Singapore Permanent Residents (PRs) | |
| First residential property | 5% |
| Second residential property | 25% |
| Third and subsequent residential property | 30% |
| Foreigners | |
| Any residential property | 30% |
| Non-individual buyers | |
| Any residential property | 35% |
*Source: Ministry of Finance (MOF), Ministry of National Development (MND), Monetary Authority of Singapore (MAS)
If you have any questions regarding the calculation of these two taxes, feel free to consult Leo Kwek (郭耀阳), who will provide you with professional and detailed answers.
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Singapore Home Loan Interest Rates
At the end of June this year, several banks in Singapore raised their fixed rates for home loans. Local banks increased their lending rates in step with the interest rate hikes by the US Federal Reserve. The fixed interest rate data from banks can be found in the table below:
| Bank | Fixed Rate |
| DBS Bank (DBS) | Two-year fixed rate 2.75% p.a.
Three-year fixed rate 2.75% p.a. |
| OCBC Bank (OCBC) | Two-year fixed rate 2.65% p.a. |
| Citibank (CITI) | Two-year fixed rate 2.95% p.a. |
| UOB Bank (UOB) | Two-year fixed rate 2.98% p.a.
Three-year fixed rate 3.08% p.a. |
Although the fixed rates for home loans in Singapore have increased, the barrier for foreigners to purchase private condominiums is still relatively low, and they can easily obtain a home loan from a bank. If you would like to understand more about the conditions and procedures for Singapore home loans, please feel free to consult us.
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Other Considerations
Before buying a home, it is prudent to perform financial calculations to understand your financial capacity. This will help set expectations and narrow down your property search. When buying a home in Singapore, you will need to hire a lawyer to handle the legal aspects of the purchase. If you require a loan, it’s best to prepare the necessary documents in advance.
If you have questions about any of these aspects, please do not hesitate to contact us. We will provide solutions tailored to your specific situation.
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