The property market in Singapore is confusing but it doesn’t mean you do not make an effort to know more about it. Here, you only have two property options: rent or buy. If you consider renting, you should look for an agent to help you secure a good deal. You also need to prepare for upfront costs like one month’s advance and two months deposit.
If you are ready to buy, you also need to look for an agent who will settle everything. For foreign buyers, the Residential Property Act (RPA) restricts properties they are allowed to own. RPA refrains foreigners to buy vacant lands, landed properties, HDB flats, and residential building less than six levels. However, if the condominium is approved under the planning act, foreigners are allowed to own one unit.
If you are a citizen, you have plenty of options. Here are the different types of properties you are allowed to buy:
The most common type of property is condominiums like Riverfront Residences Oxley-Lian Beng Venture. These places offer different facilities that promote better living like a swimming pool, tennis court, and gym. The price will depend on the location and size.
Housing Development Board (HDB)
HDB flats are government housing. Many Singaporeans consider this because of its affordability.
Walkup refers to any property that doesn’t have an elevator. This type of property is usually found in older blocks.
A landed house is very expensive. It refers to a bungalow with surrounding garden and swimming pool. Only a few consider this because it needs a lot of maintenance plus space is restricted.
Cluster house is like a mixture of landed house and a condo unit. The privacy is like that of a landed house but the amenities are like that of a condo unit featuring a gym and swimming pool. Shophouse – building with shops on the ground floor and housing above is a familiar example of a cluster house. Cluster houses are usually heritage structures that are converted to residential buildings.
The prices of properties depend on the size and location. You have to know that in Singapore, the property market is divided into three sections – Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR). CCR is the most sought after area because of its proximity to the city center. Property prices here are the highest. It includes Sentosa Island and districts 1, 2, 9, 10, and 11. RCR is a good place if you want to buy a property just close to the city center. It includes districts 3, 5, 7, 8, 12, 13, 14 and 20. OCR is the suburban area.
Now that you know the types and the location, it is time that you consider the mortgage. The good news is that there are many banks here that offer good rates, you just need to find the right one that suits your needs. Remember that the Loan to Value ratio is 80%. This means that you have to prepare the remaining 20% using your own money.