The Sail at Marina Bay

Singapore Luxury Waterfront City Living

FAQs & Buying Procedures

 

Is a foreigner eligible to buy residential property in Singapore?

 

A foreign person cannot acquire or purchase restricted residential property unless he obtains the prior approval of the Minister for Law. Such property includes:

 

  1. vacant residential land
  2. landed property [i.e detached house, semi-detached house, terrace house (including linked house or townhouse)]
  3. landed property in strata developments which are not approved condominium developments under the Planning Act

A foreign person is not restricted from acquiring:

 

  1. any apartment within a building
  2. any unit in an approved condominium development under the Planning Act (incl. The Sail)
  3. a leasehold estate in restricted residential property for a term not exceeding 7 years, including any further term which may be granted by way of an option for renewal.

Note: A foreign person is not allowed to acquire all the apartments within a building or all the units in an approved condominium development without the prior approval of the Minister for Law. 

What is the buying / payment procedure?

 

  1. Project under construction

The general procedure is as follow:


1. The Option (in respect of the property) is given by the developer to the purchaser in exchange for a booking fee (i.e. Option fee). The general practice of developers is to ask for 5% of the purchase price as booking fee.

2. Within 2 weeks of the date of the Option, the developer will send to the purchaser or his solicitors the Sale and Purchase Agreement in duplicate for the purchaser’s signature, and photocopies of the title deeds of the property for inspection and perusal.


3. In order to exercise the Option, the purchaser has to sign the Sale and Purchase Agreement in duplicate and return it with 20% of the purchase price (less the booking fee which has been paid by the purchaser) before the Option expires (i.e. within 3 weeks of the delivery of the Sale and Purchase Agreement and photocopies of the title deeds of the property.

 

4. The Option is not assignable or transferable by the purchaser.

 

In the event that the purchaser does not exercise the Option, 25% of the booking fee will be forfeited to the developer. The remaining 75% of the booking fee will be refunded to the purchaser.

  1. Completed project (e.g. The Sail)

In the sale of a completed project, however, the payment scheme of the property’s purchase price is generally as such:

 

i) Option fee upon booking of unit

1% of purchase price

ii) Deposit within 2 weeks of issuance of Option

5% or 10% of purchase price (inclusive of 1% Option fee)

iii) Within 6 – 8 weeks from the date of Option

Balance 90% of purchase price

 

Stamp duty

 

Stamp Duty is a tax levied on documents which record transactions, such as disposition or transfer of interest from one party to another. Therefore, stamp duty is payable by the person who purchases both residential and non-residential properties in Singapore.

 

How much Stamp Duty do I have to pay?

 

Based on purchase price, the first $180,000 (1%), next $180,000 (2%), thereafter (3%).

 

Example, property purchase price is S$2,000,000:

1% on the first S$180,000                      S$1,800       

2% on the next S$180,000                     S$3,600 

3% on the remaining S$1,640,000         S$49,200

Total stamp duty payable                       S$54,600

 

A document can be presented for stamping at any time before executing (signing). However, once a document is executed (signed), stamp duty must be paid within:

 

  • 14 days from the date of execution if the document is signed in Singapore;
  • 30 days of its receipt in Singapore if the document is signed overseas. 

Additional Buyer Stamp Duty (ABSD) may apply.

Capital gain tax

 

There is currently no capital gains tax in Singapore.

 

Property tax

 

The prevailing property tax rate for industrial, commercial and let-out residential properties is 10%. Owner-occupied residential properties are taxed at a concessionary rate of 4% of the annual value. Annual value is the estimated annual rent a property can fetch if it were rented out.

 

Professional Fee / Commission

 

Sale by Private Treaty, Auction or Tender

 

Party

Professional Fee / Commission Payable to Agency

Vendor

Minimum two percent (2%) of contracted price as sales commission.

Purchaser

One percent (1%) of contracted price as finder's fee may be payable. 

(e.g. if the agency is the appointed representative).

 

An Agency shall not accept any commission from both the Vendor and Purchaser in the same transaction without the prior knowledge or written consent of the Vendor and Purchaser of the transaction.

 

For project marketing (sale or purchase of more than 4 units), commission shall be negotiable.

 

Commission shall become due immediately upon completion of sale and purchase or as otherwise agreed between the parties.

 

Rental

 

Party

Professional Fee / Commission Payable to Agency

Landlord

 

One (1) month's gross rental for lease of first 12 months or up to 24 months, and an additional one half of a month's gross rental for every subsequent 12 months' lease or less.

One half of a month's gross rental for less than 12 months’ lease.

Tenant

 

For cases where the gross monthly rental is $2,500 or less,

One half (1/2) of a month's gross rental for less than 12 months’ lease.

One (1) month’s gross rental for lease of first 12 months or up to 24 months.

 

An Agency shall not accept any commission from both the Landlord and Tenant in the same transaction without the prior knowledge or consent of the Landlord and Tenant of the transaction.

 

Commission shall become due immediately upon execution of the tenancy agreement by Landlord and Tenant.

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