A Guide to Investing in Private Property in Singapore
Hundreds of millions have the pleasure of calling Singapore home, and it’s not a strain to see why. With its robust economy, high quality of life, pro-business environment, highly qualified workforce, and attractive investment opportunities – so much so that the percentage of ex-pats living in Singapore currently sits at around 29%, equating to about 1.64 million people.
Singapore’s property market is one of the most popular reasons ex-pats choose to relocate to the country, their hands itching with the hopes of making a quick buck or two. Providing that investors know how to play the game, property investment could yield a significant financial gain. Either by earning a passive income by renting or selling property for profit when it increases in value.
However, let’s remember that property investment can be a double-edged sword and that there is a fine line between financial gain and ruin. Therefore, if you’re interested in becoming a property investor, it’s essential that you look at your financial situation before getting involved. We’ve created a quick guide to help you get started below:
Should You Invest in Singaporean Real Estate?
When searching for investment opportunities overseas, the world is your oyster (quite literally!). But whether you decide that the United States, New Zealand, Germany, France, or Singapore will be your destination, it’s essential to understand that different countries have different investment opportunities, which may prove less or more lucrative than the other.
For various reasons, investing in the Singaporean property market is considered a safe long-term bet with some of the most popular as follows:
- Location –
One of the most critical factors in real estate is location. With developed countries like Thailand, Malaysia, and Indonesia neighboring the country, Singapore is an excellent location for investment property. Especially for frequent travelers, since the country is well-connected to others and has one of the best transport systems in the world.
- Stable, Robust Economy –
Another popular reason to invest in Singaporean property is that Singapore is one of the world’s most economically sound and robust countries. Due to this, the country is less susceptible to economic downturns, which reduces the investment risk and makes the city-state more attractive for businesses and investors.
- Varied Property Market –
Singapore’s property market is highly diverse, from luxury condominiums to HDB flats, so whether you’re looking to find a new home or an investment opportunity – you’re bound to see it in Singapore.
- Low Crime Rate –
Singapore has consistently been rated one of the safest countries in the world, which is ideal when searching for a place to live or invest. When your investment is situated in an area with low crime, you can rest assured that it’ll be safe, secure, and well-protected even when you’re not there.
What Important Factors Should You Consider Before Investing in Private Property in Singapore?
As we discussed briefly in our introduction, property investment can either lead to financial gain or ruin. Therefore, you must consider all factors, no matter how big or small, before committing to an investment.
Some of the most crucial factors to consider before investing in Singaporean real estate are geographic location, infrastructure level, property-related government policies, interest rates, and the type of home loan you could qualify for.
Regardless of the destination of choice for your investment opportunity, it is paramount that you take the factors we’ve listed above into consideration and any others that may arise during your research to ensure that you make a sound investment choice.
Navigating foreign property markets can be challenging, so if you’d like a more personalized experience, you might want to consider enlisting the services of advisors like PropertyGuru Group, who offer tailored advice to ex-pats and investors looking to purchase Singaporean property alike.
Consider visiting their website to compare home loan rates, get help finding a property, and take advantage of their valuable learning materials, which can help you make smarter decisions and answer any questions that you may have about the Singaporean property market.
Is It Possible for Foreigners to Purchase Property in Singapore?
One of the most important questions you might have upon deciding to invest in the Singaporean property market is whether foreigners can purchase property in Singapore. In short, yes, foreigners can buy property in Singapore, but they’re liable to specific restrictions by the government and the Housing & Development Board (HBD).
For instance, there are no limitations on how many private apartments or condominiums foreigners can buy. Yet, foreigners are not permitted to purchase HDB flats, and government approval is needed to own bungalows, terraced properties, or any other landed residential properties that require an application from the Singapore Land Authority.
There are also no restrictions for foreigners who wish to purchase commercial properties, like shops, offices, factories, warehouses, and shopping malls in Singapore. All in all, giving foreigners ample freedom when deciding which property to invest in yet setting some strict ground rules that can sometimes be complicated to follow.