As one of the world’s financial centers, Singapore is home to the Asian headquarters of many multinational corporations. Consequently, many Indonesians 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 the world’s lowest loan interest rates—buying is a gain. Besides personal residence, it can be rented out or held for a period and then sold as a long-term investment, serving two purposes at once.
Basically, Indonesians who come to Singapore and can afford to buy property will choose to do so as early as possible. So, can Indonesians buy property in Singapore? What conditions must be met? How much does it approximately cost to buy a property? Can they 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 Indonesians 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 nearly three out of every four Singaporeans are Chinese, making it the only country besides mainland China where the ethnic Chinese population is in the majority.
The Singapore government encourages people from all over the world to work, study, and settle here, and thus allows Indonesians to purchase property locally. However, compared to Singapore citizens and Permanent Residents (PRs), there are some restrictions for Indonesians buying property in Singapore.
What Are the Restrictions for Indonesians Buying Property in Singapore?
There are only two types of property that Indonesians can buy in Singapore:
- Private condominiums
- Landed properties in Sentosa Cove
Singapore has limited land and a dense population. To stabilize housing prices and enable its citizens to buy homes for marriage and family at reasonable prices, the government provides significant policy support for Singaporeans, such as building affordable HDB flats. It also restricts the types of property that Indonesians can purchase. Apart from landed properties in Sentosa Cove, Indonesians can only buy private condominiums.
How Much Does It Cost for Indonesians to Buy Property in Singapore?
If you plan to buy a private condominium in Singapore, how much money should you prepare?
Although Singapore is small in area, it is divided into 28 districts. Property prices can vary significantly between different districts. When selecting a property, you can choose 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 regions. The table below shows the average price of condominiums in these districts:
| 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 also choose adjacent neighborhoods or more distant communities with convenient transportation. If you are studying in Singapore or sending your child to school here, 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 about different areas and properties; they can usually help you find the most suitable property.
Can Indonesians Get a Loan to Buy Property in Singapore?
Indonesians can also get a loan to buy property in Singapore, with a maximum loan of up to 75% of the property value.
How Are Taxes Calculated for Indonesians Buying Property in Singapore?
If your purchase price is below SGD 1 million, the taxes you need to pay will be 63% of the property price (3% Buyer’s Stamp Duty + 60% Additional Buyer’s Stamp Duty).
If your purchase price is between SGD 1 million and SGD 1.5 million, the taxes you need to pay will be 64% of the property price (4% Buyer’s Stamp Duty + 60% Additional Buyer’s Stamp Duty).
If your purchase price is between SGD 1.5 million and SGD 3 million, the taxes you need to pay will be 65% of the property price (5% Buyer’s Stamp Duty + 60% Additional Buyer’s Stamp Duty).
If your purchase price is above SGD 3 million, the taxes you need to pay will be 66% of the property price (6% Buyer’s Stamp Duty + 60% Additional Buyer’s Stamp Duty).
What Is the Down Payment for Indonesians Buying Property in Singapore?
In most cases, if you choose to take a loan and can secure 70% financing from the bank, the down payment for a condominium is 30%, calculated based on the Loan-to-Value (LTV) ratio.
What Is the General Process for Indonesians Buying Property in Singapore?
If you are buying a new property in Singapore, you need to follow these steps:
- On the day of booking: 5% of the purchase price (as a deposit)
- Within 1-2 weeks: The developer will send the Sale and Purchase Agreement to the law firm
- Within 3 weeks of receiving the purchase agreement: Arrange for the loan and go to the law firm to sign
- Within 2 weeks of signing the Sale and Purchase Agreement: The buyer needs to pay the property stamp duty
- Within 8 weeks of booking: Pay 15% of the purchase price
- Make payments according to the construction progress
If you are buying a resale property in Singapore, you need to follow these steps:
- Choose a property you are satisfied with (through a real estate agent or property website);
- Contact the seller to negotiate and agree on a mutually acceptable price;
- Pay a 1% deposit;
- Apply for a loan from the bank;
- Pay a 4% down payment within the next 14 days;
- Sign the purchase agreement;
- On the completion date, pay the remaining purchase price minus the home loan amount;
- The property is transferred.
Can I Complete a Property Transaction If I Am Not in Singapore?
Yes. Indonesian buyers can sign documents at a local law firm that provides notarization/authentication services (Notary Public) or at the Singapore Embassy. Indonesian buyers can also appoint 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, while permanent residency is a matter handled by the Singapore government. Therefore, buying property is not a direct path to immigration. However, owning property in Singapore can help in a Permanent Resident (PR) application by adding points, serving as a stepping stone for immigration to Singapore.
Conclusion
It is common for Indonesians to buy property in Singapore. Many who work or study in Singapore choose to purchase their own property. On one hand, it can be used for personal residence during their time in Singapore. On the other hand, if they are not living in it, it can be rented out or sold, making it a very good investment.
- All Questions Answered Before Buying a Home in Singapore
- Should You Choose Freehold or 99-Year Leasehold for Property Investment in Singapore?
Official Sources & References
- IRAS — Additional Buyer’s Stamp Duty (ABSD) rates: ABSD official page
- IRAS — Buyer’s Stamp Duty (BSD): BSD official page
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