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Your own guide to investing in property in Singapore

Property investment is a great way to make a lot of money – if you know what you’re doing. Otherwise, it can be a very risky market, one fraught with legalities and nuances. But with the right guide and a good idea of the marketplace, you can well be on your way to building a proper portfolio. So let’s get you started.

The Basics

This is important, because the tenant’s contribution constitutes a major part of your investment returns, the other being the sale of the residence at a higher value.

How Prices Change

Next, it’s important to know how value usually changes in Singapore. Current metrics place the average investment price change at -3.67 percent in a single year. That may sound bad, but looking into the mid-term future, five years from your purchase, your value typically increases by 1.72 percent. Wait another five years, and in the right conditions your home’s value could increase as much as 67.57 percent — a perfect place to consider a sale.

How Ownership Works in Singapore

Your powers as a landlord aside, ownership here is manifold in its meaning and definitions. Freehold means that you, as the owner, have permanent rights to the residence. A leasehold, on the other hand, makes you owner for the period of the lease. It’s important to know the difference before you start making money, especially if you’re thinking of buying for inheritance purposes.

On Taxes

As far as tax rates go, Singapore is an attractive country for the financial investments from foreign entities and individuals. For those making their money through the country itself – like landlords – monthly incomes between US$1500 and US$12,000 have a flat rate of 15.1 percent.

Location

The final and most important question is: where do you actually invest? Singapore isn’t a large country, but the value of property varies according to location. The primary form of housing here is the HDB apartment – a state-sponsored program for subsidized housing, utilized by most Singaporeans. The most expensive property sales are usually in Bukit Panjang.

PGSG-Best-locations-for-property-investment-in-Singapore_V5-edited

Infographic by PropertyGuru. Used with permission

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