Singapore is well-known for its political stability, exceptional governance, efficiency, and transparency when it comes to starting a business. These factors make it a popular location for foreign investments, and one of the most common questions is how can foreigners purchase property in Singapore.
Purchasing property in Singapore can be daunting. Given the plethora of options and convoluted procedures, one may have countless questions when moving forward. This article serves as a comprehensive guide for any prospective property seekers out there.
Who is a Foreigner?
If you are not a Singaporean citizen, Singapore company, Singapore limited liability partnership, or Singapore association, you are considered a foreigner. Permanent residents (PR) are also considered foreigners.
Types of Singapore Residential Properties
In Singapore, residential properties can be split into two categories: public residential housing and private residential properties.
Public Residential Housing
Only Singapore citizens or permanent residents (PR) are eligible to purchase public residential housing. This is managed by the Singapore Housing Development Board (HDB) and is heavily subsidized by the local government. Hence, foreigners are prohibited from purchasing.
Private Residential Properties
There are different kinds of private residential properties, ranging from executive condominiums, private apartments or condominiums, and landed housing.
Eligibility for Foreigners Purchasing Property in Singapore
Different types of scenarios
The following is a list of the common types of property that foreigners are eligible to purchase:
Foreigner Restrictions when Purchasing Property in Singapore
Certain restrictions have been imposed for foreigners looking to buy landed property in Singapore. A person will need to write to the Singapore Land Dealings Approval Unit when looking to buy the following listed below:
Applicants tend to have a better chance of attaining the desired property if they are able to demonstrate proof of making exceptional economic contributions to Singapore.
Age Requirements when Purchasing Property in Singapore
For public housing (HDB), a person must attain the minimum age of 21 years old to purchase with a family nucleus. Single, unmarried, or divorced individuals will need to be a minimum of 35 years old, and widowed or orphaned individuals need to be a minimum of 21 years old.
CPF Usage when Purchasing Property in Singapore
The Central Provident Fund (CPF) Ordinary Account (OA) can be used when purchasing property in Singapore. The amount approved for usage is dependent on the two factors listed below:
1. Valuation Limit (VL)
This refers to the market value or the purchase price of the property at the time that an individual is making the purchase (depending on whichever is lower).
2. Withdrawal Limit (WL)
This refers to the maximum amount of CPF value a person can use for his or her property, capped at 120% of the valuation limit.