There is no buying restriction for foreigners on condominium properties of at least six storeys, but they need permission from the Singapore Land Authority if they want to buy landed properties, and permission is not granted automatically.
The buying process is relatively fast. Buyers first secure an Option to Purchase by paying a non-refundable 1 per cent deposit (although the actual amount is negotiable) of the purchase price which will take the property off the market. This option is valid for 14 days, after which the buyer either forfeits the 1 per cent or pays a 10 per cent deposit to enter into a legally binding purchasing contract.
Surveys, searches and permission take place before the final contract is signed and the property is exchanged. Stamp duty amounts to 3 per cent of the property price and there is no capital gains tax if the investor resells the property after three years.
Ku Swee Yong, Savills Singapore's director of marketing and business development, advises would-be buyers to register their interest with the developer or a reliable agency. 'In most cases, given the improving economy and demand, the best time to buy is during preview or pre-launch,' he says.
If buyers cannot fly to Singapore they can contact reputable agencies in Singapore through websites or through the Hong Kong branch offices of international agencies and request that their names be registered with the developers. 'Agents can be appointed through e-mail and followed up with written correspondence. If additional security and confidence is required, they can correspond through their lawyers,' Mr Ku says.
