Can Foreigners Buy Property in Singapore?
Can Foreigners Buy Property in Singapore?
The most direct answer is: Yes. Singapore is a highly inclusive country with 74.3% of its population being Chinese. Nearly 3 out of 4 Singaporeans are of Chinese descent, making it the only country outside of China with a majority Chinese population.
The Singapore government encourages people from all over the world to work, study, and settle here, and therefore allows foreigners to purchase property in Singapore. However, compared to Singapore citizens and permanent residents (PR), there are some restrictions for foreigners buying property in Singapore.
What are the Restrictions for Foreigners Buying Property in Singapore?
Foreigners in Singapore can only choose from two types of properties:
- Private Condominiums
- Landed Properties in Sentosa Cove
Singapore has a high population density and limited land. To stabilize property prices and ensure that locals can afford housing to marry and settle down, the government provides various policy supports for Singapore citizens, such as building affordable public housing (HDB flats). Foreigners are restricted in the types of properties they can purchase. Besides landed properties in Sentosa Cove, foreigners can only buy private condominiums.
How Much Does it Cost for Foreigners to Buy Property in Singapore?
If you plan to buy a private condominium in Singapore, how much should you budget for? Although Singapore is small, it is divided into 28 districts with significant price differences between them. When choosing a property, you can select different price ranges based on your budget.
Generally, condominiums in districts 1 – 7, 9, 10, 11, and 15 are more expensive as most multinational companies, universities, and traditional wealthy neighborhoods are concentrated in these areas. The table below shows the average prices of condominiums in these districts:
1 – 7，9，10，11 和 15 区新公寓均价
Average Prices by District
| District |
Average Price (SGD per sqft) |
Average Price (CNY per sqm) |
| 1 |
2,531 SGD/sqft |
128,390 CNY/sqm |
| 2 |
2,706 SGD/sqft |
137,269 CNY/sqm |
| 3 |
2,325 SGD/sqft |
117,942 CNY/sqm |
| 4 |
2,387 SGD/sqft |
121,085 CNY/sqm |
| 5 |
1,771 SGD/sqft |
89,839 CNY/sqm |
| 6 |
2,956 SGD/sqft |
149,951 CNY/sqm |
| 7 |
2,754 SGD/sqft |
139,705 CNY/sqm |
| 9 |
2,786 SGD/sqft |
141,327 CNY/sqm |
| 10 |
2,752 SGD/sqft |
139,602 CNY/sqm |
| 11 |
2,633 SGD/sqft |
133,565 CNY/sqm |
| 15 |
2,363 SGD/sqft |
119,869 CNY/sqm |
If You Are Working in Singapore
If you are working in Singapore, you can check the apartment prices near your workplace. If the average prices exceed your budget, you can consider nearby communities or further areas with convenient transportation.
If You Are Studying in Singapore
If you are studying in Singapore or sending your children here for education, choosing an apartment near international schools is undoubtedly the most convenient option.
Average Prices and Variations
The above prices are only averages. Prices can vary based on different locations, configurations, and developers. You can choose a trustworthy local real estate agent to provide more detailed information about specific areas and developments. They can usually help you find the most suitable property.
Market Trends
According to recent trends, property prices in Singapore have increased fivefold in the past two years and are expected to continue rising.
Cooling Measures Implemented by the Singapore Government
At the end of last year, the Singapore government introduced cooling measures to curb the property market, including increasing the Additional Buyer’s Stamp Duty (ABSD), tightening the Total Debt Servicing Ratio (TDSR), and raising the minimum down payment for loans.
However, with the reopening of borders, an influx of expatriates and foreigners, the recovery of industries such as tourism, construction, and hospitality, coupled with low loan interest rates (1-1.8%) and a reduction in new apartment projects, what will be the trend for private property prices in Singapore in 2022? This article will analyze the six major property price trends in Singapore for 2022.
Cooling Measures Overview
- Increased Additional Buyer’s Stamp Duty (ABSD): Raised by 5% to 15%, except for the first property purchased by Singapore citizens and Permanent Residents (PRs).
- Tightened Total Debt Servicing Ratio (TDSR): The threshold was tightened from 60% to 55%, including refinancing existing home loans.
- Increased Minimum Down Payment for HDB Loans: Raised from 10% to 15%.
Trend 1: Slower Increase in Private Property Prices Short-Term
The substantial increase in ABSD will most significantly impact foreign buyers and investors, with relatively little effect on Singapore citizens and PRs. This means the previously soaring private property market will be most affected. In the short term, the price rise of private properties will slow, and transaction volumes will decrease. However, with the launch of new projects, economic recovery, and improved employment conditions, the private property market is expected to regain vitality in the second quarter.
Trend 2: More Options for First-Time Buyers
The main goal of the government’s cooling measures is to ensure that Singapore citizens and PRs, who are the first-time buyers, can afford and access housing. Therefore, these cooling measures are more beneficial than detrimental to first-time buyers. The increased ABSD effectively reduces the enthusiasm of foreign buyers and investors. Coupled with the government’s increased supply of HDB and private housing, Singapore citizens and PRs will have more purchasing options. However, since the minimum down payment for HDB loans increased from 10% to 15%, families without substantial savings might need to wait longer.
Trend 3: Resale HDB Market Remains Strong
Although the government will increase the supply of new HDB flats, a considerable number of Singaporeans will still prefer resale HDB flats. This is due to the long waiting time, complicated process, and higher risks associated with new flats, especially for first-time buyers eager to move into a new home and those looking to upgrade their housing. Therefore, the resale HDB market will continue to remain active and vibrant.
Trend 4: Stabilization of the Private Condominium Market
In 2021, the trend in Singapore’s condominium prices was stable, with 31 private condominium projects launched, all experiencing strong demand. These buyers were partly HDB upgraders and partly investors looking to secure properties before further price increases. Due to the restrictions of the Government Land Sales (GLS) program, there will be fewer new private condominium launches in 2022, leading to a more stable private property market.
Before the government announced the new round of cooling measures, there were rumors that en bloc sales might revive. For developers, if they cannot secure new land, en bloc sales of old apartments offer an alternative way to acquire land. However, the increase in ABSD dispelled this rumor, as developers would need to pay up to 40% ABSD. Additionally, since the majority of condo buyers are foreigners and investors, who are the primary targets of the new cooling measures, it can be predicted that the Singapore condo market will be more stable in 2022.
Source: Shicheng News