Singapore Property Buyer Guide

Singapore Property Buyer Guide


The process for buying property in Singapore for expatriates, foreign residents living in Singapore and overseas investors is slightly convoluted and confusing as many exceptions, exemptions and requirements exist.

This is a general guide about how to buy property in Singapore and details the main specifics of the process. However a potential purchaser should seek personalized legal advice before entering the market to ensure that they are aware of any restrictions or permission requirements that they will have to be aware of or fulfil in order to buy property in Singapore.


Overseas buyers are generally freely permitted to purchase an apartment in a building which has at least six stories, a housing unit in an ‘approved condominium development’ or alternatively a leasehold property a building which has at least six stories. All other properties may be available for sale to an investor but they have to seek the permission of the Singapore Land Authority before proceeding to purchase.

In many emerging property markets investors have to seek legal permission to purchase from the local government and this process is simply par for the course and never a real hindrance to the buyer; in Singapore the situation is very different. Many properties are deemed ‘restricted’ and are unavailable for sale to a foreign buyer, therefore anyone looking at properties for sale in Singapore needs to be aware of this fact and have a good property specialist lawyer on board from the start to quickly assess whether any real estate an investor sets their sights on is legally for sale to them.

Interest rates in Singapore are currently relatively low which is helping to attract more buyers to the property market. Home financing can be quite affordable and if an investor decides they want a mortgage to buy their investment property in Singapore they should have this agreed in principal before making any offer to buy otherwise the sale could fall through and the potential buyer could lose up to a 10% deposit. Restrictions exist especially where an investor is hoping to buy an investment property with a limited lease – generally the shorter the lease period the higher the interest rate applied to any loan and the more difficult it will be to obtain financing. Anyone who requires a mortgage to purchase must keep this in mind.

With any mortgage required having been pre-approved and with a real estate lawyer standing by, an investor should begin their search for suitable properties in Singapore to match their investment objectives. Local estate agents are used to dealing with foreign buyers and are generally very well versed in the complexities of the property buying process in Singapore so should be well able to assist an investor locate suitable properties for sale.

As soon real estate has been located that an investor believes will meet his requirements he can secure an ‘Option to Purchase’ the property by paying a non-refundable 1% of the purchase price to effectively take the property off the market and allow the investor’s solicitor to have time to check out whether all is in order with the property and whether the investor will require permission to buy it.

The ‘Option to Purchase’ is valid for a 14 day period after which time a buyer either forfeits his 1% and the property goes back on the market or the buyer pays a further 9% of the purchase price to make up a 10% deposit. At this stage the property buying process moves forward and a preliminary contract is signed by the vendor and buyer.

Any further surveys, searches and permission seeking will take place before the final contract is signed and the property is exchanged. There is usually a 1% fee payable by the buyer to the estate agent in Singapore and the property investor also has to pay stamp duty which amounts to a further 3%. Lawyer’s fees and any charges attributed to acquiring permission to buy property in Singapore or securing a mortgage are extra.

It’s worth pointing out that short term property speculation is not really an option for a property investor in Singapore because if they resell their real estate within one year of purchase they will become liable for 100% capital gains tax. This drops by 33% a year for the next two years therefore anyone who wishes to profit from equity accrual needs to wait at least three years before reselling their property assets.