Whether you’re a local or someone looking to move over, you must understand how to purchase a home in Singapore. The steps will work largely how they work based on where you are, but with some slight differences. For example, the Housing and Development Board of Singapore plays a crucial role. To learn more, continue reading.
What Property You Can Buy
Generally speaking, there are three main types of property that a Singaporean can traditionally purchase in Singapore. The most common comes in the form of HDB flats, which are homes developed by the Housing and Development Board.
Another type of property available to purchase is private property. This is a broad term, but it essentially refers to homes owned by individuals rather than the government, banks, or even developers. It may be a different case to purchase as a foreigner, which will be explained in the next section.
Purchasing As A Foreigner
It’s more than likely that you are reading this article as someone not currently a local. If you are indeed a foreigner looking to purchase, you probably wonder how it works from your perspective. Know that foreigners can purchase private properties, such as apartments and condominiums. Although, if they want to purchase landed properties, such as traditional homes and bungalows, they will need to seek government approval.
Generally speaking, foreigners will not be able to purchase an HDB flat. They will need to be a permanent resident or considered a Singaporean citizen. Foreigners will also only be eligible for purchasing executive condominiums if they are at least ten years old. There is also a minimum age requirement of 21 to purchase too, which is worth bearing in mind if you are young and ambitious.
How To Find A Home
If you are purchasing a property as a foreigner, you may be unsure where you start in your search. The good news is that it largely works the same way that you have been used to in your own country. Mainly, you will be able to use the internet to search through different property listing sites.
With some property listing sites, you may be able to view a floorplan or even enjoy a video tour of the property. This can help you see what a property really looks like without traveling all the way down to the country. Of course, before you purchase any property, you should still go over yourself before confirmation, just in case.
As mentioned, there are different types of properties available. If you want to understand how a HDB HLE application works, then you should do your research ahead of time. Purchasing a flat in Singapore isn’t the most complicated thing in the world, but it can seem to be, especially if you know little to nothing about the process.
Average Costs On Property
It’s important to note that due to the amount of different property types available, a home’s average cost can vary. Something that can affect the price of a property includes the maturity of the estate, how close the amenities are, and the overall condition itself.
The price also varies year to year, depending on both the local and global economies. Recently, Singapore was announced as the second-most expensive city in the world to purchase private property. There is a good reason for this, mainly due to the size of the city. There are more premium properties in this small area, which makes the average seem higher than it actually may be.
It’s worth looking at various property types, even if you think you’ve got a fairly good idea of the direction you want to be going in for a property. You should never close any doors of opportunity, as there will be sure to be something that surprises you.
Potential Ownership Restrictions
You may be wondering how many properties you can own? There is no clear-cut limit to the number of private properties you can own, providing you are a permanent resident or a Singaporean citizen. If you are an HDB owner looking to purchase private property, you will have to wait five years, while occupying in order to qualify.
If you wish to own an HDB flat and a private property, you will need to first purchase the HDB flat itself. You will also need to occupy this flat for five years before you can look to invest into another private property. This is the case for both local and overseas individuals.
There is no income ceiling for purchasing an HDB resale flat. However, if you choose to go down the route of a CPF housing grant or an HDB housing loan, then there will be some income ceilings. You should also know that you won’t be eligible for a CPF housing grant or even an HDB housing loan if you already own private property. Otherwise, you should be good to go, but always ensure you are speaking to local property experts before purchasing anything, so you’re aware of all the details.