As one of the world’s financial centers, Singapore is home to the Asian headquarters of many multinational corporations. Consequently, many Malaysians work, live, settle, and retire in Singapore, and many parents send their children to study here or immigrate with their entire families.
Whether you are working, living, or studying in Singapore, after a while, 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 a home here is a sound investment. Besides owner-occupancy, it can also be rented out or sold after a period, serving as a dual-purpose long-term investment.
Essentially, most Malaysians who come to Singapore and can afford to buy a property choose to do so as early as possible. So, can Malaysians buy property in Singapore? What conditions must be met? How much does it cost? 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 Malaysians Buy Property in Singapore?
The most direct answer is: yes.
Singapore is a highly 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 China where the ethnic Chinese population is the majority.
The Singapore government encourages people from all over the world to work, study, and settle here, and thus allows Malaysians to purchase property in Singapore. However, compared to Singapore Citizens and Permanent Residents (PRs), there are some restrictions for Malaysians buying property in Singapore.
What Are the Restrictions for Malaysians Buying Property in Singapore?
There are only two types of properties that Malaysians can choose to buy in Singapore:
- Private condominiums
- Landed properties in Sentosa Cove
Singapore has limited land and a large population. To stabilize housing prices and ensure that its citizens can afford to buy homes and start families, the government provides significant policy support to Singaporeans, such as building affordable HDB flats. It also restricts the types of properties that Malaysians can purchase. Apart from landed properties in Sentosa Cove, Malaysians can only buy private condominiums.
How Much Does It Cost for Malaysians to Buy Property in Singapore?
If you are planning to buy a private condominium in Singapore, how much 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 a condominium within your budget from various price ranges.
Generally, condominiums in Districts 1-7, 9, 10, 11, and 15 are more expensive, as most multinational corporations, universities, and traditional affluent neighborhoods are concentrated in these areas. The table below shows the average prices for condominiums in these districts:
| District | Average Price (SGD) | Average Price (RMB) |
| District 1 | 2,531 SGD/sqft | 146,571 RMB/sqm |
| District 2 | 2,646 SGD/sqft | 153,231 RMB/sqm |
| District 3 | 2,835 SGD/sqft | 164,176 RMB/sqm |
| District 4 | 2,593 SGD/sqft | 150,161 RMB/sqm |
| District 5 | 2,220 SGD/sqft | 128,561 RMB/sqm |
| District 6 | 2,974 SGD/sqft | 172,225 RMB/sqm |
| District 7 | 3,095 SGD/sqft | 179,232 RMB/sqm |
| District 9 | 3,049 SGD/sqft | 176,569 RMB/sqm |
| District 10 | 2,999 SGD/sqft | 173,673 RMB/sqm |
| District 11 | 2,964 SGD/sqft | 171,646 RMB/sqm |
| District 15 | 2,460 SGD/sqft | 142,459 RMB/sqm |
1 SGD 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 sending your child to school here, choosing a condominium near an international school would be the most convenient option.
Of course, these are just average prices; prices will vary depending on the location, amenities, and developer. You can choose a trustworthy local real estate agent to provide you with more detailed information about different districts and properties. They can usually help you find the most suitable property.
Can Malaysians Get a Loan to Buy Property in Singapore?
Malaysians 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 Malaysians Buying Property in Singapore?
If your purchase price is below S$1 million, the tax payable is 63% of the property price (3% Buyer’s Stamp Duty + 60% Additional Buyer’s Stamp Duty).
If your purchase price is between S$1 million and S$1.5 million, the tax payable is 64% of the property price (4% Buyer’s Stamp Duty + 60% Additional Buyer’s Stamp Duty).
If your purchase price is between S$1.5 million and S$3 million, the tax payable is 65% of the property price (5% Buyer’s Stamp Duty + 60% Additional Buyer’s Stamp Duty).
If your purchase price is above S$3 million, the tax payable is 66% of the property price (6% Buyer’s Stamp Duty + 60% Additional Buyer’s Stamp Duty).
What is the Down Payment for Malaysians Buying Property in Singapore?
In most cases, if you opt for a loan and can secure 70% 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 Malaysians Buying Property in Singapore?
If you are buying a new launch property in Singapore, you need to follow these steps:
- On the booking day: Pay 5% of the purchase price (as a deposit).
- Within 1-2 weeks: The developer will send the Sale and Purchase Agreement (S&P) to your 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 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 need to follow these steps:
- Select a property you are satisfied with (through a real estate agent or property portal).
- Contact the seller to negotiate and agree on a price acceptable to both parties.
- Pay a 1% deposit.
- Apply for a bank loan.
- Pay the remaining 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 you.
Can I Buy a Property in Singapore Without Being Physically Present?
Yes. Malaysian buyers can sign documents at a certified law firm (Notary Public) or the Singapore Embassy in Malaysia. Malaysian buyers can also arrange for a Power of Attorney (POA) through a lawyer, authorizing a relative or friend in Singapore to execute the property transaction on their behalf.
Can Buying Property in Singapore Lead to Immigration?
Buying property in Singapore does not equate to immigration. Property transactions are typically between a developer or a private seller, whereas permanent residency is a matter for the Singapore government. Therefore, buying a property is not a direct path to immigration. However, owning property in Singapore can be a plus factor in a Permanent Resident (PR) application, serving as a stepping stone towards immigration.
Conclusion
It is very common for Malaysians to buy property in Singapore. Many who work or study in Singapore choose to purchase their own homes. On one hand, it can be used for self-occupancy during their time here. On the other hand, if not owner-occupied, it can be rented out or sold, making it an excellent investment.
- All Your Questions Answered Before Buying a Home in Singapore
- Should You Invest in a Freehold or 99-Year Leasehold Property in Singapore?
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