Investment Guide to Real Estate in Singapore:
Investment Immigration Policies:
1. Global Investor Program (GIP). Entrepreneurs with an annual business turnover of SGD 10 million can choose to invest SGD 2 million, of which SGD 1 million is allocated to an investment fund approved under the GIP, and another SGD 1 million is for investing in private residential properties.
2. Financial Investor Scheme (FIS). Invest SGD 3 million in financial assets while also owning Singapore real estate valued at SGD 2 million.
Home Purchase Payment Procedures:
1. Off-plan Properties. After signing the pre-sale contract, buyers can pay the purchase price in ten installments according to the project's construction progress. According to Singapore law, all sale proceeds must be deposited into a designated project escrow account, and the funds can only be used for the corresponding project construction and cannot be diverted for other uses.
2. Completed Properties. For the purchase of completed properties, the full payment should be made within three months after signing the purchase contract.
Home Mortgage Loans:
Foreigners enjoy the same loan policies and procedures as Singaporeans, with a maximum loan application of up to 80%. Bank loan interest rates are very low, ranging between 2% and 2.5%.
New Policies on Property Transactions:
Due to the overheating of the Singapore real estate market in the first half of this year, the Singapore government has recently introduced new regulatory policies. It stipulates that owners who resell commercial properties or residential land within one year for investment purposes will be subject to seller stamp duty, with rates the same as the stamp duty that must be paid when purchasing a property, namely 1% on the first SGD 180,000, 2% on the next SGD 180,000, and 3% on the remaining amount.
Others:
The area of houses sold in Singapore is calculated based on usable area, excluding common areas, resulting in a 100% net area ratio.
Land in Singapore is divided into two types: land with a perpetual lease and land with a 99-year lease. Currently, most of the government-released development land is on a 99-year lease, while projects with perpetual leases are mostly concentrated in the old urban redevelopment projects in the city center. There is approximately a 30% price difference between perpetual lease projects and 99-year lease projects in the same area.
Foreigners are not restricted from purchasing private residential apartments in Singapore; however, purchasing landed properties such as villas and bungalows requires approval from the Singapore government authorities.
