Singapore, a highly international city-state, has always been a focal point for global property buyers. This is not only due to its excellent living environment, convenient transportation, and stable security, but also because real estate has long been considered an asset that preserves and even increases value. Many expatriates, including investors, immigration applicants, or those planning long-term residency, aspire to own a home here. However, to protect housing opportunities for local residents and prevent an overheated real estate market, the Singaporean government has consistently imposed clear restrictions and tax requirements on foreign buyers. With rising property prices and increased international capital flows in recent years, Singapore’s policies have been continuously adjusted, particularly regarding taxes, property types, and approval procedures, becoming more stringent and transparent.
Types of Property Foreigners Can Purchase
In Singapore, foreigners are not completely prohibited from buying property; there are certain categories of properties that are explicitly permitted. The most important is private residential units, commonly known as apartments or private housing projects. Foreigners can generally purchase these units directly from the private market without special approval. This is currently the most common property type that foreign buyers encounter. Additionally, there is a type of property called “Executive Condominium,” which, while initially only open to local residents for the first few years, will “transition to private residence” after a certain period, at which point foreigners can also purchase it. Foreigners purchasing commercial properties (such as offices, shops, or industrial plants) are generally not subject to residential restrictions, but these are not considered residential properties and therefore do not fall under the category of “buying a house to live in,” but are simply an investment option.
Restricted or Prohibited Property Types
Compared to properties that can be purchased directly, many residential types are restricted or even prohibited for foreigners. Firstly, government-built flats are a typical public housing system, primarily designed to guarantee the housing needs of Singapore citizens and permanent residents, so foreigners cannot purchase either new or resale properties. Secondly, so-called “landed housing,” including detached houses, townhouses, and terraced houses—residences with their own land—are extremely scarce resources on Singapore Island. Singapore law stipulates that foreigners wishing to purchase this type of housing must meet certain requirements. Approval must first be obtained from the Singapore Land Authority. Approval is not automatic; it is determined based on government assessment criteria (such as the potential economic contribution to Singapore). It’s worth noting that certain landed properties on Sentosa Island are an exception: foreigners can apply to purchase them, but approval is still required; however, the policy is more lenient in this area.
Additional Buyer’s Stamp Duty and Other Costs
Even if foreigners can buy certain residential properties, the costs are not the same. There is a fee called “Additional Buyer’s Stamp Duty” (ABSD) in Singapore, a tax specifically levied on foreign buyers to control property prices and curb excessive speculation. Unlike the Basic Stamp Duty (BSD), which is payable by all buyers, ABSD is a separate charge. Current policy stipulates that foreign individuals buying any residential property must pay a very high ABSD rate. This fee often reaches around 60% of the property price. This means that if a property is priced at S$1 million, the foreign buyer will have to pay approximately S$60% in additional ABSD on top of the S$1 million purchase price. The 60% tax rate significantly increases the total cost of property ownership. Of course, this high rate is not “absolutely unchangeable.” Over the past few years, the government has gradually increased the tax rate from lower levels, so future adjustments based on market conditions are possible. However, as of now, this remains the mainstream and officially implemented tax rate. It’s also worth noting that nationals of countries with Free Trade Agreements (FTAs) (such as the US, Norway, and some other countries) may receive partial ABSD (Asset-Backed Debt) relief under certain conditions, but specific agreement stipulations are required for eligibility.
Singapore adopts an “open but tiered” approach to foreign property purchases. You are not completely prohibited from buying, but the type of property, approval requirements, and total cost are far more complex and expensive than for locals. Foreigners can directly purchase private apartments or private residential projects, and some executive condominiums are also available under certain conditions; however, public housing (HDB) and most landed properties are restricted or even prohibited for foreign buyers and require approval procedures. Simultaneously, the government levies taxes on foreign buyers. The hefty Additional Buyer’s Stamp Duty (ABSD) is often the heaviest component of the total cost of buying a home, significantly raising the barrier to entry and effectively curbing short-term investment. While future policies may be adjusted according to market and social conditions, these restrictions remain the prevailing rules for now.
