At Singapore Expat Choice, we have include some useful information to assist you if you are selling or buying a property in Singapore. Beside the buyer's and seller's guide, we also have a section that focuses on financing such as housing, bridging and renovation loan, insurance and legal matters such as conveyancing, power of attorney and etc.

The latest transaction prices for Singapore private housing and HDB flats can be also found here.

THE BUYING PROCESS

Purchasing a private home in Singapore is probably one of the largest transaction you’ll make involving a loan. Please make sure that you appoint a real estate agent that is registered with CEA. Before making a commitment on a home, your Singapore property agent will be able to recommend you some lending institutions with competitive rates. The lending institutions will be able to determine your eligibility for a home loan and also recommend a loan package that suits for your needs. A pre-approved mortgage (In-Principle approval) ensures that you have made all the right financial considerations upfront.

Finding

Once you know how much to invest, the next step is to find the property that best suits your needs. A CEA licenced real estate agent will be able to assist you with your property search in Singapore. The professional real estate agent will be able to represent and protect your interest as well as to advise you on the properties that you have shortlisted and secure the property at the best possible terms in your interest. The estate agent will be able to ensure that the documentations are in order and you are dealing with the rightful owner of the property.

Most property companies in Singapore use the same database of property listing in Singapore. It is advisable to use only one agent for your property search as most of the property agents will give priority to customers whom engage him/her as their sole estate agent. They know that by working hard for your property needs, they will be remunerated. By engaging multiple agents, the real estate agent may end up serving you only after they have attended to those whom use them exclusively. You may also end up viewing the same property with different agent thus wasting your valuable time. You should switch to another real estate agent if the real estate agent you appointed is incompetent or do not understand your property needs.

Closing the deal

Before you sign on a dotted line, please obtain an indicative valuation from the bank you intend to use. To get an accurate indicative valuation, please provide the followings:
• Address of property
• Property type (landed, condominium, cluster housing etc)
• TOP Date / Age of property
• Land area / built-up area
• Tenure - Freehold / leasehold (999 years / 99 years)
• Cost and date of the recent renovation if applicable

In the event the Bank's valuation is lower than the purchase price, you will need to pay the difference between the purchase price and the Bank's valuation in cash. It is recommended to appoint one of the Bank’s panel of lawyers, their lawyer fee’s should be cheaper than those lawyers that are not on the Bank’s panel. The costs for legal services rendered in the purchase of the property and preparation of mortgage documentation relating to the bank loan, may be paid via CPF.

Once you have finalized the sale price of your dream home with the Seller. You will need to prepare one (1%) per cent of sale price as Option Money payable to the Seller to exchange for the Option to Purchase (OTP) which is issued by the Seller. The option period will be valid for a period agreed by the Purchaser and the Seller. It is usually two (02) weeks. The Seller will not be able to sell this property to any other buyers during this option period.

If you choose not to exercise the option, your option money will be forfeited by the Seller. If you choose to exercise the option, you will need to prepare another four (4%) – nine (9%) of the sale price make payable to either (“Name of law firm-CVY”) or Singapore Academy of Law according to the Seller’s preference. It will be paid to the Seller’s name in the event that the OTP has a non stakeholder clause. The first 5% of the purchase price must always be in cheque/ cashier order / telegraph transfer (CPF savings is not allowed) and the balance of the sale price can be a combination of cash and/or Central Provident Fund (CPF) savings.

Stamp Duties

Stamp duty is imposed on documents executed for the sale and purchase of a property. Duty will be computed on the market value or purchase price of the property (whichever is higher).

Computation of Stamp Duty*

Duty payable at ad valorem of the purchase price (PP):

Stamp duty is to be paid within 14 days from the date of acceptance of the OTP or Sale and Purchase (S&P) Agreement. For more information, please visit www.iras.gov.sg.

* Stamp duty amount is subject to change.

The Buyer will need to pay stamp duties to the Commissioner of Stamp Duties within
• 14 days from the date of execution if the document is signed in Singapore;
• 30 days of its receipt in Singapore if the document is signed overseas.

Please ensure that the stamp duties are paid on time. Late stamping would be subjected to penalties for violating the Stamp Duties Act (Cap. 312)

• Penalties will be imposed on documents that are stamped late or for which stamp duty is underpaid.

• If the delay does not exceed 3 months, the penalty is $10 or equal to the amount of the deficient duty, whichever is higher.

• If the delay exceeds 3 months, the penalty is $25 or 4 times the amount of deficient duty, whichever is the higher.

Your lawyers will e-stamp the necessary documents on your behalf, and obtain a Payment Voucher. You can either:

a. Make payment directly to Commissioner of Stamp Duties with the Payment Voucher; or
b. Make payment indirectly, by depositing the money for stamp duties in either:
i. Singapore Academy of Law or Your lawyer’s Conveyancing Account (“Name of law firm-CVY”);
Your lawyer can instruct Singapore Academy of Law or the bank to prepare the necessary cashier’s orders /cheques and submit the payment on your behalf.

COMPLETION PERIOD
There is no standard completion period time frame but most of the completion period ranges from eight (08) weeks to twelve (12) weeks from the date of the expiry of the option period. On the completion day, your lawyer will need to pass the balance of sales proceeds to the Seller’s lawyer.

Please Indicate to your lawyer your preference to:
a. Place the money in your lawyer’s Conveyancing Account (“Name of law firm-CVY”);
b. Place the money with the Singapore Academy of Law; or
c. Make payment on your own directly to the seller or his nominees. For more information about the rules and regulation please visit http://www.iras.gov.sg/irasHome/page04.aspx?id=2954

FAQ

Can a foreigner or a non Singapore citizen buy a residential property in Singapore?
Under the Act, a foreign person means any person who is not any of the following: Singapore citizen;
Singapore company;
Singapore limited liability partnership;
or Singapore society.

If you are a foreign person and are interested in purchasing a restricted residential property, please download and complete the approved form from our web site. You are required to submit the form together with the relevant supporting documents to:

Land Dealings (Approval) Unit

Singapore Land Authority
55 Newton Road
#12-01 Revenue House
Singapore 307987


What is restricted residential property?
A foreign person cannot acquire or purchase restricted residential property unless he obtains the prior approval of the Minister for Law. Such property includes:

a. vacant residential land;
b. landed property [i.e detached house, semi-detached house, terrace house (including linked house or townhouse)]; and
c. landed property in strata developments (cluster housings like Teneriffe, Binjai Crest) which are not approved condominium developments under the Planning Act.
d. An HDB shophouse;
e. An HDB flat purchased directly from HDB;
f. A resale HDB flat where HDB has consented to the sale;
g. An Executive Condominium purchased under the Executive Condominium Housing Scheme Act, 1996.


What is non-restricted residential property?
A foreign person is not restricted from acquiring:

a. any apartment within a building;
b. any unit in an approved condominium development under the Planning Act; and
c. a leasehold estate in restricted residential property for a term not exceeding 7 years, including any further term which may be granted by way of an option for renewal.

Note: A foreign person is not allowed to acquire all the apartments within a building or all the units in an approved condominium development without the prior approval of the Minister for Law.

For details on application, please visit Singapore Land Authority* website.