Real estate in Singapore

Singapore is a small but economically strong Asian country. The standard of living here is one of the highest in the world. Singapore is rightly proud of the cleanliness of its streets, its strict adherence to law and order and its low crime rate.
In addition, the country is considered one of the most comfortable places to do business - it has transparent and effective legislation and a loyal attitude towards foreign investors.
Analysts predict an active growth of the real estate market in Singapore in the next ten years. Foreigners consider this country a reliable and promising direction for capital investment.
The procedure for buying a home in Singapore is quite simple, although there are certain rules for foreign citizens that you need to know in advance. These include, in particular, restrictions on the purchase of certain types of real estate. Nevertheless, the choice of investment opportunities is quite wide.

Singaporean law has introduced a number of restrictions on the acquisition of real estate by foreign nationals. These restrictions are set out in the Residential Property Act 1973.

Under this Act, foreign nationals cannot acquire the following types of property without special permission:

• Land of any kind, including undeveloped land;
• Bungalows, cottages and houses with land;
• Terraced houses and other residential properties that stand on their own land;
• Housing Development Board apartments and Housing Development Board apartments.

To purchase such properties, a foreigner must apply for a special permit from the Land Authority of Singapore. The review process takes about 3 weeks.

Without a special permit, foreigners can buy in Singapore:

• Condominiums (apartments in residential complexes);
• Apartments and houses in private condominiums;
• Houses and bungalows on Sentosa Island;
• Commercial and office properties.

There are also restrictions on renting apartments bought by foreigners.

1. Ownership. It is necessary to check the documents on the ownership of the property and the seller's authorization to sell it.
2. No bankruptcy. If the seller is bankrupt, the approval of the bankruptcy trustee is required. In this case, the money from the transaction goes to the bankruptcy trustee.
3. Right to purchase. Make sure that this type of property can be purchased according to your status.
If you cannot be present in person, the transaction can be handled remotely via a notarized power of attorney to an agency in Singapore.
However, a personal inspection during a viewing tour is recommended prior to purchase. As a rule, the buyer bears the costs for accommodation and part of the organizational costs. In this way, an informed decision can be made based on the impressions gained during the viewing.

Secondary market

When buying a property on the secondary market, a deposit of 1% of the value must be paid. If the deal does not go through, this is non-refundable. A further 4% is paid as an expression of the buyer's intent. This 5% is the fee for reserving the property. The purchase contract is then signed. Within 2 weeks, the government fees, legal fees, etc. are paid. The balance is paid within 8-10 weeks from the date of the option. If a mortgage loan is taken out, the transaction documents are submitted to the bank to adjust the loan amount.

Primary market

When purchasing a property under construction from a developer, a 5% deposit is paid. After 3 weeks, the purchase contract is signed, taxes are paid and a further 15% is paid. The rest of the amount is transferred gradually as the construction progresses. The final payment is made after the house has been handed over and the building permit has been issued. If the contract is terminated, 75% of the price is refunded, 25% remains with the seller.

Viewing of the property

Before signing the contract, we recommend a personal inspection of the condition of the property, fixtures and fittings, etc.. It is also checked that there are no unauthorized changes.

If you are looking to buy a home in Singapore, you should contact a great real estate agency. Experienced real estate agents will help you find the right property for your needs and budget, and also provide you with professional legal assistance during the transaction.
All agencies have access to a single database of listings on the market, so there is no point in applying to several companies at once. It is better to opt for a reliable partner who can quickly understand your wishes.
Property owners in Singapore rarely negotiate the sale directly without the involvement of brokers. There are usually two brokers involved in the transaction - on the buyer's side and on the seller's side. Owners and buyers can involve themselves in the final stage if they wish.
For foreigners, it is more convenient to work with local companies that have partners in Singapore. It is possible to work directly with the seller's agent who will take care of the entire legal process of the transaction from start to finish.

Mortgage loans are a popular tool for buying property in Singapore, both for locals and foreigners who can apply for a loan on similar terms. The maximum loan amount is 80 percent of the estimated value of the house to be purchased, with a down payment of 20 percent required. The loan term varies between 5 and 35 years, depending on the age of the borrower, and interest rates are fixed for the entire period and are currently around 2% per year. To obtain a loan from the bank, documents confirming the identity, employment and income of the potential borrower are required, as well as a certificate from another bank about the availability of funds for the down payment and property insurance. With a mortgage, you can significantly reduce the amount of one-time investment for the purchase of your own property in Singapore.

It is handled by agents and independent registration of the transaction is not required. The agents not only inform the state authorities about the transfer of ownership, but also involve notary lawyers in the transaction. The latter have the task of signing the necessary documents, paying the deposit and making the payment.
Particular attention should be paid to the process of buying and selling a property. The state real estate registrar submits a reservation to protect the interests of the buyer. This reservation states that the seller may not transfer his property to third parties, thereby protecting the interests of the buyer during the transaction.