Singapore is known for a lot of things: a strong economy, great opportunities for professionals, a fast-paced business environment, and a high cost of living. Yes, this includes prices for commercial and residential real estate properties. Because of this reason, a lot of investors see the city-state as a high-potential investment area. There are a lot of new projects that are ongoing in the city-state right now. This is especially true for luxury residential properties such as condominium units.
The Government of Singapore is known for its excellent support in the housing industry. Even during 2008, when all other countries are trying to keep their real estate prices from going down, Singapore was able to recover within a year. Singapore is also one of the most popular ex-pat options, too. Here are the other things you should know when you’re planning to invest in Singapore real estate.
1. Luxury Items Are In Demand
The demand for luxury items has been rising due to the intervention from the government. With this effect, other housing options are also getting price hikes, which is good news for investors who already invested in the city-state. Successful sales of big-ticket luxury properties such as penthouses are setting the bar for the property price index higher. It is still not too late to ride this trend.
2. Sentosa Is Now Cheaper Than Before
If you’re not trying to find a property for investment but residence instead, consider getting a unit in Sentosa instead. Sentosa is where the foreigners can buy landed properties without any restrictions, unlike on Core Central Region and other parts. According to the New York Times, the reduction of prices is due to people’s preference for the Core Central Region over Sentosa. For a cheaper option, you can still get your property from the outside central region, but with restrictions.
3. Residents from the US and Some Parts of Europe Are Exempt for Stamp Duty
If you’re from the US, Iceland, Liechtenstein, Norway, or Switzerland, then rejoice! Since 2020, all the property buyers from these countries are exempted from paying an additional 20% of the stamp duty. Stamp duty is needed for foreigners to be able to purchase properties or get a leasing contract. That’s a lot of savings for a lot of people from the exempted areas. You got to spend hundreds of thousands of Singaporean dollars on this one.
4. Sellers Are the Ones Who Pay For Commissions
And last but not least, the seller is the one who will pay for the commission fee of an agent for landed and non-landed private properties. This applies to luxury condo units. The buyer pays nothing and is not obliged to pay a cent to the real estate agent who helped in finding the property. Sellers should pay a 2% commission to the agent. Take note that the 2% will be split to the seller’s agent and buyer’s agent.