How To Buy A House In Singapore: A Complete Guide (2023)

If the American Dream is a house with a white picket fence, 2.5 kids, and a dog, then the Singapore equivalent would be to own property.

Singapore may rank as the ninth costliest city in the world, but thanks to extensive government measures in the form of market regulation and financial grants, most Singaporeans can still afford to own a home — specifically, the 2019 home ownership rate in Singapore was 90.4%.

There are 3 main types of properties in Singapore:

• HDB flats
• Private properties
• Executive Condominiums (ECs)

To buy a HDB flat, you must be a Singapore Citizen or a Permanent Resident (PR).

Singapore Citizens and PRs are also allowed to purchase any type of private properties (including apartments and landed bungalows) and ECs, but do take note of certain restrictions regarding ownership of HDB flats.

Foreigners can purchase private properties such as private apartments and condominiums, but will need government approval to buy landed properties like bungalows.

Foreigners can only buy Executive Condominiums (ECs) that are at least 10 years old.

Foreigners cannot purchase HDB flats in Singapore.

To purchase a resale HDB flat, the minimum age is 21 years old, provided that you are purchasing as part of a family nucleus. The nucleus can include:

• Spouse and children
• Parents and siblings
• Children under your legal custody (if widowed or divorced)

If you are purchasing a resale HDB flat as a single person (unmarried or divorced), the minimum legal age is 35 years old. If you are widowed or orphaned, the minimum legal age is 21 years old.

To purchase private property, the minimum legal age is 21 years old. However, there are cases where a purchase can be made under a trust if the property owner is under 21.

Yes, singles can buy HDB flats. but there are certain criteria to be met, depending on which scheme you are applying under. In addition, you will need to be a Singaporean Citizen (single PRs are not eligible to buy HDB flats, resale or otherwise) and at least 35 years old.

According to HDB, an essential occupier is defined as 'one who forms a family nucleus with the applicant to qualify for a flat from HDB'. An essential occupier is required as part of the application process for Built-To-Order (BTO) and Sale of Balance Flats exercises.

More importantly, an essential occupier as listed in the flat application must physically and continuously occupy the flat throughout the 5-year or 10-year (for prime areas) occupation period. If this criterion is not fulfilled, HDB can cancel the application and forfeit your deposit(s).

Do note that only Singapore Citizens and PRs can be listed as essential occupiers.

The actual cost of a home in Singapore will vary based on many factors, including the maturity of the estate, proximity to amenities, type and age of the property, and condition of the unit. The average price of property in Singapore in 2018 was US$874,372 (approx. S$1,183,025).

It is important to note that in addition to the actual price of the property, there are additional expenses that go into becoming a homeowner. Examples include legal fees and stamp duties, maintenance fees (conservancy fees), home insurance, and more.

If you are buying an HDB flat, you can apply for an HDB Concessionary Loan.

The Loan-To-Value (LTV) limit for HDB housing loans is up to 80% of the property value or selling price, whichever is lower. This limit was recently cut by the Singapore Government in a bid to help home buyers borrow money prudently and avoid future difficulties in repaying home loans.

The remaining 20% downpayment can be financed with cash and/or your CPF savings.

If you are buying an HDB flat, you can also choose to take a private bank loan. The LTV limit for private bank loans is up to 75% of the property value or selling price, whichever is lower.

The remaining 25% is split into 20%, which can be paid using cash and/or your CPF savings, and a minimum of 5% compulsory cash component.

If you're thinking of applying for a home loan, remember to compare the best home loan rates on a financial comparison site like SingSaver.

HDB offers housing loans at a concessionary interest rate to flat buyers (not applicable to Executive Condominiums). Flat buyers will need to meet the eligibility conditions to take up a HDB housing loan.

The amount of HDB housing loan that one can borrow is dependent on the price and remaining lease of flat, in addition to the income, age and financial commitments of the borrower.

The amount of CPF Ordinary Account (OA) savings you can use is subject to the CPF housing limits, namely the Valuation Limit (VL) and Withdrawal Limit (WL).

The VL refers to the valuation price or purchasing price of your HDB flat, whichever is lower. You can use your OA savings to finance up to the VL of your flat. If you would like to request to withdraw more of your OA savings, you can – but you must first ensure that you fulfil the Basic Retirement Sum (this amount varies depending on which year you turn 55).

The WL is 120% of the VL. This is the absolute maximum amount of OA savings you can use to finance your flat. Anything above the WL will have to be funded by cash.

You can use this CPF Housing Withdrawal Limits Calculator to help you estimate when you will reach your CPF withdrawal limits for housing.

Currently, private property owners must sell off ('dispose of') their private properties (local or overseas) within 15 months of purchasing a resale HDB flat. However, seniors above 55 years old who are downgrading to a 4-room flat or smaller are exempted from this ruling.

Private property owners who are interested in a BTO flat must first dispose of all their private properties at least 30 months before they apply for a BTO flat.

This translates to a pretty long waiting time in-between homes, so ensure your finances and living arrangement are planned to cater for those factors.

There is no limit to the number of private properties you can own as a Singapore Citizen or PR.

HDB owners who wish to purchase private property can only do so after the minimum occupation period of five or 10 years (for prime locations). This means that if you want to own both an HDB flat and private property, you must first purchase a HDB flat and occupy it for at least 5 or 10 years before investing in a private property (local or overseas).

Do note that you cannot own more than one HDB flat. If you purchase a second HDB flat, you must dispose of the first flat within 6 months of the second purchase.

Ownership Restrictions for HDB flats

Source: Housing & Development Board