As we all know, nowadays people are very fond of for buying the properties. Also in Singapore, people showing their interest in buying the properties and most of them are foreigners. In 2012, foreigners were pulling back themselves from the residential property market due to the implementation of the additional buyer’s stamp duty but now some reports suggest that foreigners are making their comeback in Singapore’s residential property market.
According to some reports by the Urban Redevelopment authority, the purchases by the foreign clients increase drastically by 48% to 795 units in 2017 as compared to 538 units in 2016, while the purchases by the permanent occupants rose by 33% to 1878 units in 2017 from 1418 units in 2016. Some sources also suggest that Singaporeans purchased private property to the high extent and according to stats it rose by 69% to 8950 units in 1H2017 from 5297units in 1H2016.
Nowadays there are some many foreign nationalities who have been interested to buy the private residential properties and even commercial spaces present in Singapore. Some of the foreign nationalities are as follows: –
Foreign Buyers Singapore Property
According to some reports, Lots of buyers from China invest their money in the residential property market in Singapore and also they merge their position as the top buying group in Singapore over the past five years. There are some popular locations in Singapore among the investors and buyers. The deemed district 19 which encapsulates regions like Serangoon Garden and much more & district 23 having eye-catchy regions like Bukit Panjang, Choa Chu Kang are the most popular locations in the country as of now. Some statistics from Urban Redevelopment authority showed that the majority of the Chinese investor bought properties between $500k USD to a little over $1 million USD in the fiscal year 2017.
Malaysia is of one the closest neighbour of Singapore and also comes second amidst the foreigner buyers buying islands and properties in Singapore on a diverse scale. The country is packed with an exotic list of locations, regions like Punggol, Serangoon Garden and various others are present in the posh district 19. Talking about district 18, the district encapsulates Pasir Ris, Tampines etc. for the buyers. District 27 in the country is breaking the barriers by attracting a larger chunk of investors, with regions like Sembawang & Yishun, the investments are booming. Investments worth $500k USD to $1M USD were made in the region.
Read also: Calculating your Property TAX in Singapore
When it comes to the 3rd biggest group of investors in the country, a majority of people are hailing from Indonesia. They basically search the properties present within the core central region and these type of the properties attract them a lot. Properties falling in the array of 19th districts like Cairnhill, Orchard and more & properties in district 10 with Bukit Timah & Ardmore region tag are one of the most favourite places for the Indonesian buyers. Talking about the 19th district, with vivid locations like Punggol as well as housing, are acting as a magnet for the investors.
Indian investors hold fourth position in term of buying the properties in Singapore. Properties that fall in the array of trade-off amidst the Central Business district segment are in high demand amidst the foreigners. According to the Urban Redevelopment authority reports, the most sorted after locations for the Indian buyers are Pasir Ris present in district 18 as well as Tampines in the same region. For district 15, Indians are preferring Amber road, Katong as well as Joo Koon for their endeavours. Most of the Indian Investor invest their huge amount of money in the Singapore residential property and also Urban Redevelopment authority reports suggest that their investment lies in the price tag of $500k to $1M USD. The reason for the Indian investors to favour buying in districts like 15th & 18th is simple, there is a huge presence of the community in the region & Indians are hoping for a cultural blend.
Americans are rounding off the list of the buyers through becoming eligible for ABSD remission norms. Now they have drawn their attention to the properties in the Singapore’s heart. Reports suggest that most of the Americans investor invest their money in the market but especially at the locations in the districts of utmost importance. Reports from the URA refers that the properties like Orchard present in the 9th district with other regions like River Valley holds significant importance for the Americans. Ardmore, as well as Holland road in the lush 15th district, are also breaking the stereotypes. When it comes to district 15th, Amber road is stealing the show.
Foreigner buying property in Singapore stamp duty
The Government announced today an Additional Buyer’s Stamp Duty (ABSD) to be imposed on certain categories of residential property purchases. The ABSD will be imposed over and above the current Buyer’s Stamp Duty, and will apply to the purchase price or market value of the property (whichever is higher) for the following purchases:
Foreigners and non-individuals (corporate entities) buying any residential property will pay an ABSD of 10%;
Permanent Residents (PRs) owning one and buying the second and subsequent residential property will pay an ABSD of 3%; and
Singapore Citizens (Singaporeans) owning two and buying the third and subsequent residential property will pay an ABSD of 3%.
Rules for foreigners buying property in Singapore
For foreigners looking to buy property in Singapore, there may be certain restrictions to look out for. The Residential Property Act of 1973 regulates foreign ownership of property, land, and housing. The act applies to everyone who is not a citizen, e.g. temporary and permanent residents.
However, there are still ways/steps you can take to purchase property in Singapore.
The process typically involves the signing of the Option to Purchase (involving your payment of 1 to 5 percent cash to the Seller, which reserves the property exclusively for you as the buyer), and then exercising the option (typically within two weeks) by way of parties entering into the Sale and Purchase Agreement. This involves your payment of a deposit, and the setting in place of deadlines for payment of other fees (such as stamp duties).
From the above discussion, it is clear that most of the investors are interested in the properties located in the North-east and central region and these areas are in great demand among the foreign investors and local buyers this year. In lieu of various reports, it can be said that due to a boom in the private residential projects, the interests of the public are allured.
In the fiscal year of 2017, sales at Stars of Kovan, as well as Kingsford, mutually made over 25% of the sales amidst the future buyers in the esteemed 19 district of the region. When it comes to new areas, Gramercy Park, Sophia Hills, Twin Peaks and much more are the most ravishing areas accounting for over 30% sales.
It can be said that foreigners see investing in Singapore as an opportunity. According to them, it might be the best bang for their buck. Chinese are one of the most lucid buyers when it comes to investing in the country. One can say that the foreign presence in the Singaporean property market is on a surge. As high as million dollar properties are there out of the box picks. The country’s economy is flourishing due to the incoming investments. Buying a property in the country encapsulates a booming potential for many, hence opening the doors for a flourishing Singaporean economy.