Top Considerations for Expats Looking to Purchase Property in Singapore

Singapore has an undeniable charm. It’s clean, efficient, and bursting with opportunities. But buying property here? That’s another story altogether. I’ve been through it myself, and trust me, it’s not as straightforward as picking a place and signing some papers. The city-state has unique rules, steep costs, and a whole lot of fine print.

So, if you’re an expat thinking about making a real estate move, let’s talk about what really matters before you take the plunge.

1. Foreigners Can’t Buy Just Anything

Let’s get the big one out of the way—Singapore doesn’t exactly roll out the red carpet for foreign property buyers. The government has strict policies to keep the market stable, and that means some properties are simply off-limits.

What can you buy?

• Condominiums – No restrictions here! If you’ve got the budget, you’re good to go.
• Landed properties – These are tricky. You’ll need special approval, and getting it isn’t easy.
• HDB flats – Forget about it. These are public housing units reserved for Singaporeans and PRs.
• Executive Condominiums (ECs) – You can buy one, but only after it turns ten years old. Before that, it’s considered public housing.

So before falling in love with a place, make sure you’re actually allowed to own it.

2. Property Prices: It’s Expensive (No Sugarcoating Here)

Singapore’s real estate market isn’t for the faint-hearted. Prices are among the highest in the world, and they rarely dip. If anything, they just keep climbing.

A standard condo in the city center? You’re looking at millions. Even outside prime areas, costs are hefty. Here’s a rough idea:

• Luxury condo (Orchard, Marina Bay, Sentosa Cove) – SGD 5M and up
• Mid-range condo (East Coast, Bukit Timah, Holland Village) – SGD 1.5M to 3M
• Mass-market condo (Punggol, Woodlands, Jurong East) – SGD 800K to 1.5M

And let’s not forget the additional taxes that expats have to pay. Which brings me to the next point.

3. Additional Buyer’s Stamp Duty (ABSD) – The Unavoidable Extra Cost

Ah, the dreaded ABSD. If you’re a foreigner, you’re automatically slapped with a 60% tax on top of your purchase price. Yes, you read that right. SIXTY.

Here’s how it looks in real numbers:

• Buying a condo for SGD 2M? You’ll pay SGD 1.2M in ABSD alone.
• Eyeing a SGD 3M unit? Get ready to fork out SGD 1.8M extra.

It’s painful. But there are ways around it:

• Become a Permanent Resident (PR) – PRs pay only 5% for their first home.
• Marry a Singaporean – A locally owned joint purchase can lower or eliminate ABSD.
• Buy through a company – A legal loophole, but it’s complex and not for everyone.

ABSD is often the dealbreaker for many expats. So crunch the numbers carefully before making a move.

4. Leasehold vs Freehold – What’s Better?

In Singapore, properties come with two types of ownership:

• Freehold – You own it indefinitely. These tend to be more expensive.
• Leasehold (99 years, sometimes 999 years) – Ownership expires after the lease runs out.

A common misconception is that freehold is always better. In reality, 99-year leaseholds can still appreciate significantly, and many buyers don’t hold onto properties long enough for the lease to become a major issue.

If you’re planning to stay long-term and want something to pass down to your kids, freehold makes sense. But if you’re looking at a shorter investment horizon, a well-located leasehold condo could be just as lucrative.

5. Where Should You Buy?

Location matters—big time. Singapore may be small, but every neighborhood offers a different vibe, lifestyle, and price range.

Prime Districts (Expensive but Prestigious)

• Orchard Road – Luxury living, top-tier malls, and five-star hotels.
• Marina Bay – High-rise condos with breathtaking views.
• Sentosa Cove – Exclusive waterfront villas (if you can get approval).

City Fringe (More Affordable but Still Central)

• Tanjong Pagar – Hipster cafes, bars, and young professionals.
• River Valley – Near Orchard, but slightly more peaceful.
• Bugis – Bustling with life, perfect for those who love energy.

Suburban Areas (Better Value, Family-Friendly)

• East Coast – Beachfront condos, great schools, and laid-back vibes.
• Bukit Timah – Green spaces, elite schools, and landed homes.
• Jurong East – Singapore’s second CBD, lots of new developments.

One place that’s been catching a lot of attention lately is Parktown Residence. It offers a solid mix of luxury, convenience, and future appreciation potential. Worth checking out if you’re house-hunting.

6. Financing as a Foreigner – Can You Get a Loan?

Short answer: Yes, but it’s not as easy as it is for locals.

Singapore banks will lend to foreigners, but the Loan-to-Value (LTV) ratio is lower. While Singaporeans can borrow up to 75%, most expats get around 50-60% of the property price. That means you’ll need a hefty down payment.

Interest rates? They fluctuate, so always compare mortgage options before committing. And if you have international banking relationships, see if you can leverage those for better rates.

7. Think About Exit Strategies

Let’s say you buy a condo today. What happens when you leave Singapore? Selling isn’t always easy, and rental yields can vary. Some things to keep in mind:

• Seller’s Stamp Duty (SSD) – If you sell within three years, you’ll pay up to 12% in tax.
• Rental Market – Some areas see high demand from expats, others don’t. Choose wisely.
• Capital Appreciation – Some locations grow in value faster than others. Look at trends before buying.

If there’s a chance you might relocate in a few years, factor in your exit plan before sealing the deal.

Final Thoughts

Buying property in Singapore as an expat isn’t impossible, but it does come with unique challenges. Between high costs, government restrictions, and taxes, it’s crucial to weigh the pros and cons carefully.

Would I do it again? Maybe. But I’d go into it with eyes wide open, knowing exactly what I’m getting into. If you’re serious about making a purchase, do your homework, explore financing options, and consider speaking to a local expert.

At the end of the day, a home here is more than just a roof over your head—it’s a long-term investment in one of the most stable markets in the world. If that fits your goals, then go for it. Just make sure your wallet is ready for the ride.