Overview of the Properties You can buy in Singapore

The process of property purchase in Singapore is so challenging and you need to have a better idea on how it goes. Your residential status whether Singapore citizen, Singapore PR or Permanent Resident, and foreigner is the basis of what property that can be offered. So, it is important that you’ll know the process and be ready about it if you are eager to get a property in Singapore. Being a Singapore citizen could not be a problem since they are residing within the country. But for Singapore PR, there were fewer property purchases available for them

Please take a look at the following property purchase available and not for the Singapore PR:

Flats which are called Built-to-order (BTO) and Sale of Balance Flats (SBF) are directly being sold by Housing Development Board (HBD) Singapore to the public. However, these are not available to the Singapore PRs unless they are already married to a Singapore citizen or planning to get married. Then you need to be at least a PR for three years prior applying.

The HBD resale flat is available to Singapore PR couples, since they are not eligible to purchase new HBD flats. However, they are not available for single PRs and siblings that have both status of PR. The couple PR must have at least three years of PR status each. They also have to dispose their overseas properties in the next half of the year after their purchase of HBD resale flat.

Executive condominiums are not available yet to PRs on the first built. They need to wait for the five-year MOP or minimum occupation period. When that time passed, executive condominiums are available for rent or sale to the single PR and couples whether one or both of the spouses have status of PR.

Private property like The Tapestry Condo in Tampines is categorized into non-restricted and restricted private property. For the non-restricted it means that you don’t have to worry about any restrictions in purchasing a private property. But for restricted properties, there is needed approval that you need to obtain from the Ministry of Law prior purchasing the property.

These are just the overview of each of the properties that a Singapore PR can buy in the country. There are still a lot of properties that each citizen or PR can purchase. However, there could be some property that have restrictions or may not be available to PR or to foreigners. It is still better to get advice by an adviser to make sure that you are getting the right property for you. Condo rental is one of the options that you can choose just in case that you need to temporarily settle in while waiting for the approval or the completion of the purchase of the property.

This means that you need to make an extra research to ensure that you are following the right decision in buying private property, condominium, or flats based on the restrictions of the law in Singapore. This is important, so you can have a better shelter to live in within the country.

Types Of Properties You Can Buy In Singapore

Are you planning to buy a property in Singapore? Buying a property in Singapore varies according to the citizenship status of an individual. Surely, one would expect that if you are a foreigner, then the fewer properties are eligible for you to buy or apply. And yes, this is true. A permanent resident or PR in Singapore get fewer options when it comes to the property that he/she can buy compared to a Singaporean citizen, and same goes for the PR to a foreigner. But the challenge does not just end with one’s citizen status. The tedious task is when you are planning to buy property in Singapore when your knowledge about these areas are just minimal. To help you out, we have garnered here the list of properties that you can buy in Singapore depending of course, on your citizen status:

1. The SBF Flats or BTO

The House Development Board of Singapore or HDB are the ones authorized to sell the BTO or Build-To-Order flats or SBF directly also known as Sale of Balance Flats but only to Singaporean citizen. The permanent residents are not qualified to buy properties from the HDB of Singapore unless they have reached the minimum of three being a permanent resident. The foreigner too is not eligible to buy this type of property, however, if you are a foreigner that has a Singapore fiance/fiance and you’re both planning to stay in Singapore then the restriction is uplifted for you.

2. The Resale Flats

These are the flats available for permanent residents in Singapore who had reached the minimum of three years of being a permanent resident in the country. However, these types of flats aren’t the brand new flats since the brand new flats are only sold exclusively for Singaporean citizen.

If you are a permanent resident but aren’t Malaysian national, then you still need to check the EIP and SPR quota. The EIP and the SRP set 5 percent non-Malaysian and 8 percent permanent resident per block in the public housing neighborhood.

3. The Executive Condo

For places like Singapore, the living place often tells the income of the certain household such as when your income is above average then you can buy properties in an executive condominium which are more elegant than in public housing, of course. The brand new condos are not for sale for permanent resident in Singapore. The permanent resident can buy those resale condos that had been used for five years and those condos that had been used for ten years and above are open for foreigner buyers.

4. Private Restricted Properties

You are lucky if you are a Singaporean citizen because if you have the resources, there is no restriction on the types of properties that you can buy. In permanent resident cases, it is quite different since before they can buy private properties that fall into the category of restricted, they shall need a permit from the Ministry of Law in Singapore.

Additional Information:

Buying properties in Singapore come with the obligation to pay the buyer’s stamp fee. The buyer’s stamp that the buyer and the seller shall pay will depend on the market value of the property and the type of their residency.

Case number 1: If the buyer is a Singaporean citizen, he/she will not pay for buyer’s stamp if the property is brand new. If it is second hand, he/she will pay 7percent of the market value of the buyer’s stamp or 10 percent if he/she is the third owner already.

Case number 2: For permanent resident that qualify to buy brand new property he/she will pay 5 percent of the market value for the buyer’s stamp fee, 10 percent of the market value for buyer’s stamp if otherwise. If the permanent resident already owned property but wish to buy another, the permanent resident will pay another 10 percent of the market value of the property as an additional fee apart from the buyer’s stamp fee on the transaction.

Case number 3: For foreigners who buy property in Singapore, they need to pay for buyer’s stamp much higher rate than permanent resident and Singaporean resident pay. Regardless of whether the property is brand new or secondhand, they need to pay 15 percent of the market value of it for the buyer’s stamp.

Property Types to Purchase for Permanent Residents in Singapore

Singapore is home to many citizens including foreigners and expats who have gained permanent residence. Finding and buying a home in Singapore can be at most very challenging. Singapore has a lot of laws and policies to be familiar with for those looking to buying properties in the country. Buying properties in Singapore depend on the type of residency a person has. The country is strict when it comes to buying properties, and residential status is an important factor to take note of. Only certain types of properties are allowed for purchase to foreigners, Singapore Permanent Residents (PR) and Singapore citizens. Many options are of course an available for Singapore citizens compared to foreigners and Singapore PRs. Although limited, Singapore PRs have more property options available than foreigners. Here are a few properties that can be an option for purchase in the country. Some of these properties may not be available to Singapore PRs but still is important to be aware of:

Build-to-Order (BTO) or Sale of Balance Flats (SBF)
The Housing Development Board of Singapore (HDB) sells these flats to the public as options for housing. These flats are only available for Singapore citizens, but Singapore PRs can be eligible if married to a Singapore citizen or still planning to marry. Singapore PRs can apply purchasing these flats through public or fiance/fiancee schemes. There is also an additional requirement for a Singapore PR to purchase this type of property and that is for at least three years of having the Singapore PR residential status. Before a Singapore PR can apply for this property, these requirements should be met.

HDB Resale Flats
HDB flats are available in two types, and these are brand new and resale. HDB resale flats are available in the open market for Singapore citizens and PRs however only Singapore citizens are allowed to purchase brand new HDB flats. HDB resale flats are only allowed for Singapore PR couples only, single PRs or siblings with PR status are not allowed to purchase resale flats.

Executive Condominiums (EC)
Can be classified as a hybrid housing which can be viewed as public and private. Singapore PRs are only allowed to purchase EC after a 5-year minimum occupation period. After this period EC can be available for sale or rent for Singapore PRs, singles or couples.

Private Property
This type of property is only allowed to Singapore citizen only. For Singapore PRs, this property type is restricted, and approval from the Ministry of Law needs to be obtained before purchase.

Finding a home can be very challenging. It is a big step towards personal growth, and it is especially a challenge when finding a home in unknown territories. When deciding to buy a house, one needs to be financially prepared and have the requirements needed to make the purchase. If caught unprepared and falling short in finances is not a problem as Singapore have many housing options available. If one cannot purchase one, they can always resort to renting.