Buying a property in Singapore – A step by step guide to owning a property in Singapore
Living in Singapore
Land is a scarce commodity in Singapore. Due to this, residential properties are mainly in the form of highrise apartments or condominiums. Landed properties are a luxury as they are very expensive. On average, 80% of Singaporeans live in flats which are built and managed by the Housing and Development Board (HDB) while the rest live in private apartments, condominiums and landed properties.
The population continues to grow as the influx of foreigners increases with the opportunities in Singapore’s bustling economy. The three main property types here are HDB flats, private apartments and landed properties. Foreigners must clearly understand the differences among these properties, especially because of the ownership restrictions for HDB flats and landed properties. It is absolutely important to know about the property you intend to buy. Before deciding on which property type of property you are purchasing, you need to know the general classification of properties as set by the government.
Private apartments
Private apartments fall under the classification of apartments or condominiums, with the distinction between the two being the development size and also built up sizes. Condominiums are usually packaged with more facilities such as swimming pool, tennis court, gymnasium, squash courts, children’s playground, BBQ areas, enclosed car park and security services. These developments are commonly freehold but there are instances where they are 99-year leasehold or 999-year leasehold.
Landed properties
As for landed properties, they are classified as terraced houses, semi-detached houses, detached houses, exclusive bungalows and shop houses. These properties can be very expensive depending on the plot size as well as location and are usually tied to the land title. Most are freehold yet some are 99-year leasehold and 999-year leasehold.
HDB flats
HDB flats are the most sought after properties in Singapore as it is comparatively the most affordable. These properties are built and maintained by the Housing and Development Board which is government financed and subsidised and are 99-year leasehold. One of the advantages of HDB estates is that these developments are designed to be self-sufficient communities with basic amenities such as coffee shops, supermarkets, food centres, schools, clinics, shopping malls, playground and parks. Getting around is also convenient as these developments are well served by a host of public transportation systems like the MRT, buses and taxis.
Executive condominiums
These are slightly bigger than HDB flats but smaller than private condominiums and were created to fulfill the needs of young professionals wanting something better than a HDB flat but cannot afford the costly private condos. For the first 5 years these condominiums cannot be sold at all but is automatically converted into ‘no restrictions’ after 10 years. Between 5 to 10 years they cannot be sold to foreigners.
There are certain restrictions on foreign ownership of properties in Singapore so it would be wise to do some research and consult a solicitor before buying. As a foreigner, you may rent a private apartment and landed property by producing documents such as a valid work permit or student pass. Recently, the government had relaxed the foreign ownership restrictions to attract foreign investment and talent in a bid to increase the population and strengthen the economy. Those with Permanent Resident status or Citizenship are allowed to purchase HDB flats either through re-sale or directly from the government.
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