Singapore’s real estate market is both open and conditional for foreign buyers—you can buy certain properties without residing or relocating, but the types of properties you can buy, the taxes you pay, the difficulty of obtaining a loan, and whether you can obtain long-term residency are all subject to strict regulations. For ordinary foreign investors, the most common scenario is directly purchasing private apartments or other private residential units. These properties usually don’t require buyers to be long-term residents; however, HDB flats or most landed properties are subject to restrictions or require special approval. In addition, the government levies a high Additional Stamp Duty (ABSD) on foreign buyers and has higher regulatory thresholds for loan amounts and repayment ability.
What can foreign buyers buy?
Relatively free purchase: Most private apartments and apartments in the private market can usually be purchased directly by foreigners without the need for long-term residency or special status.
Restricted or prohibited purchase: HDB flats are for Singapore citizens and permanent residents; foreigners generally cannot purchase them. Many Executive Condominiums (ECs) may only be open to foreign buyers after a minimum residency period is met.
Landed Residential Properties: To purchase detached houses, townhouses, or other residential properties with land in Singapore, foreign buyers need to apply for approval from the Singapore Land Authority. The approval process is rigorous and often requires applicants to have long-term residency or a significant economic contribution to Singapore. In other words, buying these types of properties usually comes with high barriers to entry.
Does Property Purchase Lead to Long-Term Residency (PR/Residency Rights)?
Purchasing a residential property does not automatically grant permanent residency or long-term residency permits. To obtain long-term residency through investment, one must go through official investment immigration programs (such as the Global Investor Programme, or other authorized pathways). These programs have clear and high thresholds for investment amounts, business operations, or economic contributions, and the procedures are separate from ordinary real estate transactions. In other words, simply buying an apartment does not guarantee or automatically grant Singapore PR or citizenship. If the goal is immigration or long-term residency, one should prioritize understanding and meeting the requirements of the relevant immigration programs, rather than relying solely on property transactions.
Taxes and Holding Costs
Additional Buyer’s Stamp Duty (ABSD): Foreign individuals purchasing residential properties typically pay high ABSD. In recent years, the ABSD rate for foreign buyers has been relatively high (significantly impacting transaction costs), significantly increasing the cost of short-term speculation. In other words, even if you don’t intend to reside there long-term, Singapore’s tax threshold for foreign buyers makes the strategy of “buying but not residing, intending to resell for profit” very costly.
Other Holding Costs: These include Basic Stamp Duty (BSD), legal fees, property management fees, land tax (if applicable), and maintenance costs. These costs accumulate over time with long-term holding. If you don’t reside locally, you may also incur management and rental agency costs.
Practical Impact on Non-Long-Term Residents
Stricter Loan Restrictions: Banks are more conservative with loan-to-value (LTV) ratios for foreign buyers or those with existing mortgages. Simultaneously, financial regulations (such as MAS macro-prudential policies) impose restrictions on mortgage ratios and debt coverage ratios, reducing high leverage. Foreign investors who don’t reside locally long-term but want to buy property with a high loan-to-value ratio need to prepare higher equity or face financing restrictions.
Points to note when not residing locally long-term:
Calculate total costs: Include the property price + ABSD + BSD + legal fees + management fees + loan interest rate spread + taxes, etc., and assess the holding period (regardless of whether you reside there long-term) to see if the net return is acceptable.
Confirm property type and approval requirements: If the target is a landed residential property or a special location (such as Sentosa), find out in advance whether SLA approval is required and the relevant conditions.
Don’t treat buying property as a fast track to immigration: If your main purpose is to obtain PR or long-term residency, researching and preparing for a qualified investment immigration program (such as GIP) is far more practical and reliable than relying on property transactions.
Consider management and rental strategies: When not residing locally, budget for agency management and short/long-term rental vacancy risks, and assess whether to entrust a local property management company.
Investing in Singapore real estate doesn’t require long-term residency, but “long-term residency” does affect the types of properties you can buy, your eligibility for lower tax rates (such as PR/citizen benefits), your access to loans, and overall costs. Foreigners can typically purchase private apartments but not HDB flats; purchasing landed properties requires special approval. Furthermore, foreign buyers face high ABSD (Asset-Backed Debt) and stricter loan restrictions, which strongly discourage short-term speculation or high-leverage operations. Most importantly, buying property ≠ obtaining residency. If your goal is immigration, you should pursue dedicated investment or employment-based immigration pathways, rather than treating real estate transactions as a shortcut. In conclusion, if you only intend to invest and not relocate, be sure to carefully calculate the taxes, approvals, and administrative costs. If you hope to achieve long-term residency or obtain PR through property ownership, you need to plan separately and meet the high threshold requirements of immigration programs.
