Latest news with #Buyer'sStampDuty
Time Business News
04-05-2025
- Business
- Time Business News
Buying a Condo as a Foreigner in Singapore: What You Should Know
Singapore is a top destination for foreign investors due to its political stability, robust economy, and strong property rights. If you're a non-citizen planning to invest in real estate here, buying a condominium is one of the most straightforward ways to enter the market. However, there are important regulations, costs, and taxes to consider before you commit. In this guide, we'll cover everything you need to know about buying a condo as a foreigner in Singapore—from eligibility requirements to taxes like the Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD). In Singapore, the Residential Property Act places restrictions on the types of properties foreigners can buy. This is to ensure that landed homes are preserved primarily for Singapore citizens. However, private condominiums are exempt from these restrictions. They're classified as non-landed residential properties and are open to foreign ownership without prior approval from any government authority. Located in strategic districts with high rental demand Access to premium facilities (pools, gyms, function rooms) Gated communities offering security and privacy Potential for capital appreciation in land-scarce Singapore Yes, foreigners are legally allowed to purchase private condos in Singapore, but there are a few conditions and distinctions to keep in mind: Private condominiums (no prior approval required) Units in completed developments (no MOP restrictions) Landed residential properties (e.g., bungalows, terrace houses, cluster housing) Executive Condominiums (ECs) that are less than 10 years old Executive Condominiums (ECs) restrictions: ECs under 5 years: Only eligible to Singaporeans ECs 5–10 years: Only Singaporeans and PRs ECs after 10 years: Treated like private condos and available to foreigners Important Note: Properties under the HDB scheme (public housing) are not available to foreign buyers except under very strict exceptions, such as forming a family nucleus with a Singaporean citizen. The Buyer's Stamp Duty (BSD) is a property tax imposed on all real estate purchases in Singapore. The amount is based on the purchase price or the market value of the property, whichever is higher. Current BSD Rates (Residential): Portion of Purchase Price BSD Rate First $180,000 1% Next $180,000 2% Next $640,000 3% Amount above $1,000,000 4% Example: For a $2,000,000 condo: 1% on first $180,000 = $1,800 2% on next $180,000 = $3,600 3% on next $640,000 = $19,200 4% on remaining $1,000,000 = $40,000 Total BSD = $64,600 Use a BSD Calculator to estimate your duty accurately. The ABSD is a tax imposed on top of BSD. It applies based on the buyer's residency status and nationality. ABSD Rates (as of 2025): Buyer Profile ABSD Rate Singapore Citizen (1st home) 0% Singapore PR (1st home) 5% Foreigners (any nationality) 60% Entities (Companies/Trusts) 65% Special Exemptions: Some nationalities are exempt from the 60% ABSD under Free Trade Agreements (e.g., USA, Switzerland, Norway, Liechtenstein). These buyers enjoy the same ABSD rates as Singapore citizens. Example with ABSD: Buying a $2,000,000 condo as a foreigner: ABSD (60%) = $1,200,000 BSD = $64,600 Total Stamp Duty = $1,264,600 This tax burden is significant, and many buyers choose to explore long-term rental or corporate ownership structures to manage it. Aside from stamp duties, buyers should be aware of other fees involved in the transaction: Cost Component Estimated Range Notes Legal/Conveyancing Fees $2,500 – $5,000 Required for title transfer and contracts Property Valuation Report $500 – $1,000 Needed for mortgage processing Mortgage Arrangement Fees 0.5% – 1% of loan amount Varies by bank Home Insurance $300 – $800 annually Depends on coverage Property Agent Fees Usually paid by seller Buyer pays $0 unless agreed otherwise It's wise to keep a 10–15% buffer above the property price for taxes and associated costs. Yes, foreigners can get a mortgage in Singapore, although the terms may differ from locals. Loan-to-Value (LTV) ratio is capped at 75% for the first housing loan for the first housing loan You must pass the Total Debt Servicing Ratio (TDSR) framework—your total monthly debt obligations must not exceed 55% of your gross monthly income framework—your total monthly debt obligations must not exceed of your gross monthly income Banks may require additional documentation like: Proof of overseas income Tax returns Employment contracts Pro Tip: Always get an Approval in Principle (AIP) from your bank before making an offer. This shows sellers you're a serious buyer and gives you clarity on your borrowing limits. Here are some highly sought-after areas favored by foreign investors: Luxury shopping, top schools, and CBD access High-end condominiums with strong rental demand Expat-friendly neighborhoods with greenery and elite schools Near East Coast Park, heritage charm, and a relaxed vibe Emerging condos like Emerald of Katong and The Continuum offer good growth potential Prime CBD area; great for capital appreciation High-yield from executive tenants Foreigners can legally buy private condominiums without approval. Be prepared to pay BSD and up to 60% ABSD. Use online tools like the BSD Calculator to estimate your total tax obligations. Consider financing, legal fees, and maintenance costs in your budget. Choose condo locations wisely for long-term appreciation or rental yield. Despite the steep ABSD, many foreign buyers continue to see value in Singapore's transparent legal framework, low crime rate, and long-term capital stability. For those with a strategic investment horizon or planning to relocate, the rewards can outweigh the initial tax hurdle—especially in prime or undervalued districts. TIME BUSINESS NEWS
South China Morning Post
20-02-2025
- Business
- South China Morning Post
Hong Kong homes lost US$61.7 billion of value after removal of curbs: Centaline
The removal of property curbs a year ago has failed to support home prices, as the market value of private residential properties in Hong Kong was down by HK$480 billion (US$61.7 billion) since February 2024, Centaline Property said on Thursday. The withdrawn measures included the Buyer's Stamp Duty that targeted non-permanent residents and a New Residential Stamp Duty for second-time purchasers. Also, homeowners were no longer required to pay a Special Stamp Duty if they sold within two years. Transactions rose immediately, as first and second-hand private residential market recorded an average of 5,387 deals every month in the second quarter, nearly 90 per cent higher than the previous quarter's 2,873 transactions per month, according to Louis Chan Wing-kit, CEO of Centaline Property Agency. 01:54 Hongkongers react after 2024-25 budget scraps measures to cool property market Hongkongers react after 2024-25 budget scraps measures to cool property market But the improvement was short-lived, with transactions dropping back to an average of 3,017 per month in the third quarter. In October, the city said it would relax its mortgage policies and include property investment in the New Capital Investment Entrant Scheme (CIES). In the fourth quarter, transactions rose to an average of 4,554 per month.
