Purchase by foreigners
According to the Residential property Act, A foreigner is:
- A person who is not a Singaporean citizen.
- Foreign company or converted foreign company.
- Society or converted society.
It is possible for foreigner to buy Singapore residential properties. According to the Residential property Act, a permanent resident is also a foreigner but he/she can apply and stay in a HDB (Housing and Development Board) apartment. Foreigners would simply need the consent of the Land Dealings Approval Unit that is regarded as the controller of residential properties under the Section 24 of the Residential Property Act.
They can only get the consent if:
- They are permanent residents.
- They have the capability to benefit Singapore by contributing sufficiently.
- Experienced and qualified people in different areas that will benefit Singapore.
Those foreigners who own properties in Singapore prior to the releasing of the Act will retain the ownership. According to the Residential property Act, only approved buyers like Singaporeans citizens will be allowed to buy the properties when these foreigners want to sell their properties in the open market.
You can purchase properties in Singapore after getting the consent of the Land Dealings Approval Unit. You simply have to hire a real estate agent included in the documents in the section ‘option to purchase’ which states:
The intended purchase of the above mentioned property by the intending Purchases, namely one ___________ is subject to explicit approval from the Land Dealings Approval Unit, Controller of Residential Property as stipulated by the governing Residential Property Act 1976. In the event the approval is not validly obtained, it is hereby understood that the owners shall refund all monies without interests accrued to the said intending Purchaser and thereafter neither party shall have any claims, demands, proceedings, costs, expenses whatsoever against each other as pertaining to the said cancellation of intending sale and purchase of the said property concerned.
It is not necessary to obtain the written consent of the Controller of Residential Property Land Dealings for foreigners to buy the properties provided that:
- Your job is to purchase property on behalf of your employer.
- The property is a condo by an approved developer.
- The property is a commercial, residential or industrial unit.
Foreigners will need the consent of the Singapore Land Authority if they want to buy semi-detached house, terrace houses, 6-level buildings and vacant lands. Check the website of Singapore Land Authority for more information.
The eligibility to buy executive condos, flats and shop houses are given by the Housing and Development Board. Singaporeans citizens can buy flats from HDB directly provided that the occupant would consist of a Singapore Permanent Resident and a Singapore Citizen. The same thing applies to the resale market where the occupants need to have one Singapore citizen and one Singapore PR.
Are there any limitations on foreigner home loans?
Foreigners can be given a loan ranging up to 70-80% of the cost of the property. They would have to meet the requirements of the banks too. It is not possible for foreign companies to get home loans in Singapore.
Are there any conditions to fulfil if I am a PR and I want to apply for a home loan?
To get a home loan, it is necessary for you to submit a written statement that you do not have unpaid home loans from other Singaporean banks or financial institutions.
