First-Time Purchase Guide: Eligibility requirements to buy a house and Property Types in Singapore

What eligibility criteria are required to purchase properties in Singapore? What are the options available? This article provides a quick overview of the basic policies for buying a property in Singapore.

Different identities, Different choices

To buy a property in Singapore, you need to first confirm your eligibility based on your residency status. Different statuses can purchase different types of property.

Eligibility categories:
1. Singaporean citizen
2. Singapore Permanent Resident (PR)
3. Foreigner (non-Singapore Citizen or PR)

The differences are shown in the table below

Simply put, for HDB flat, at least one of the buyers must be a Singaporean citizen to purchase Built-to-order (BTO) flat; or Resale HDB flats are also available to couples who have become PR for at least three years.

For Condominiums & apartments, everyone can purchase them.
For landed house, In general, only Singapore citizen can buy it, and a few PRs can apply for approval from the government in special circumstances.

There are a series of strict provisions for purchasing HDB flats (BTO or RESALE), including income caps, age restrictions, marital status, and ownership of other properties, in addition to nationality. Depending on your profile, you may have different options for HDB types including sizes, locations, standards, etc. Also, allowances, taxes, rental/sale provision, etc. are not the same. Specific policies can be viewed in relevant articles on the HouseBell website/app.

Singapore citizen vs. PR

So, what’s the difference between Singaporean citizen and permanent resident?

Singapore Citizens enjoy full rights, including political privileges and social benefits. PR is a kind of long-term residence permit. A PR is essentially a foreigner, whom allowed to live and work in Singapore for a long time. For example, a Chinese citizen who obtains a Singapore PR still holds Chinese nationality.

Foreigners who apply for Singaporean PR or nationality need to meet some requirements, such as age, educational background, occupation, income, etc. You can get more information in related articles on housebell website/app.

4 Categories of Property in Singapore

Public property: HDB

HDB flats are public housing developed and managed by the Housing and Development Board of Singapore. The property rights belongs to the government, and the buyers only have long-term lease rights. More than 80% of Singaporeans live in HDB flats. Due to its welfare nature and more affordable price compared to other properties due to governement subsidies, they are subject to specific restrictions on purchasing, reselling, and renting.

HDB flats are mainly divided into two types - BTO Flat (pre-sale /first-hand) and Resale Flat (second-hand). BTO Flats are only available for Singaporean citizens to apply for, and after meeting the minimum occupancy requirements, these houses can be sold as Resale Flats in the market.

The government has launched a variety of HDB flats of different sizes and designs to meet different living needs.

Public-Private Mix property : Executive Condominiums，EC

EC is a fusion of private and public housing, built and sold by private developers, but more affordable because its land cost is partly subsidized by the government. The policy aims to help Singaporeans whose household income exceeds the BTO ceiling but is lower than the EC ceiling to own a housing at a lower price. EC can be sold to Singapore citizens or PRs after 5 years of owner-occupancy period, and after 10 years, they become fully privatized and can be sold on the open market, including to foreigners, effectively making them comparable to private condominiums.

Non-landed property : Condominiums, Apartments

This type of housing is similar to commercial housing in China, with property rights of either freehold, 999-year or 99-year. The community is usually equipped with public facilities such as gym, swimming pool, tennis court, etc. The main difference between condominiums and apartments is the size of the land area. According to the Singapore's Urban Redevelopment Authority (URA), only estates with a minimum area of 4,000㎡ can be classified as condominiums. Condo usually provide more public facilities due to its larger size.

Landed House

Landed houses in Singapore are properties where owners hold both the building and the land. This housing type resembles "villas" in China. In principle, only Singapore citizens are eligible to purchase it，while foreigners are not permitted to own landed houses. PR can apply to the Singapore Land Authority (SLA) for approval based on the situation (whether they have made significant contributions to the social economy).

For more information about property types in Singapore, please check the relevant articles on the HouseBell website/app. Wishing you success on your journey to buying a home in Singapore!