Buying a Home in Singapore? Here's Your Ultimate Housing Guide
When it comes to residential housing, Singapore truly stands apart. As a densely populated island, Singapore has ingeniously maximized its space, resulting in a vibrant housing landscape. The diversity is truly impressive, from high-rise public housing developments, known locally as HDB flats, to exclusive landed properties, modern condominiums, and unique cluster houses.
Each housing type comes with its own set of unique features, investment potentials, eligibility criteria and considerations, making it imperative for prospective home buyers and renters to understand what each entails. That’s why we’ve put together this comprehensive guide, giving you an in-depth view of Singapore’s residential housing scene.
Whether you’re a first-time home buyer, a seasoned investor seeking opportunities, or an expat exploring housing options, this deep dive into the different types of residential housing in Singapore will illuminate your path and guide your decisions.
Types of Residential Property In Singapore
1. Public Housing (HDB Flats)
Welcome to the cornerstone of Singapore’s residential landscape, public housing, also known as HDB flats. This is where a significant portion of Singapore’s resident population resides. Before we delve into the different types of HDB flats and their unique features, let’s first turn back the pages of history to better understand the role and significance of the Housing & Development Board (HDB).
In the aftermath of World War II, Singapore faced an acute housing crisis. The situation prompted the establishment of HDB in 1960, a public housing authority tasked with addressing the housing shortage and improving living conditions. Fast forward to the present, and HDB has provided homes to more than 80% of Singapore’s resident population – a testament to the success of Singapore’s public housing program.
Now, let’s move on to the various types of HDB flats available, each designed to cater to different household sizes and budget constraints:
1. 2-room Flexi Flats: These are the smallest of the HDB flat types, typically 36 to 45 square meters in size. They are designed to be compact and efficient, providing just the right amount of space for singles, couples, or retirees. The flats usually consist of one bedroom, a bathroom, a kitchen, and a living/dining area. One unique aspect of 2-room Flexi flats is that buyers can choose the length of lease according to their needs and life stages, provided they meet eligibility criteria.
2. 3-room Flats: Slightly larger than 2-room flats, 3-room flats measure between 60 to 65 square meters. These flats usually consist of two bedrooms, a kitchen, a bathroom, and a more spacious living/dining area. They offer the perfect balance between space and affordability, making them an ideal choice for small families or couples planning to start a family.
3. 4-room Flats: The most common flat type in Singapore, 4-room flats measure between 90 to 100 square meters. These flats typically have three bedrooms, two bathrooms, a kitchen, and an expansive living and dining area. They cater perfectly to growing families, offering enough space for everyone while still being reasonably priced.
4. 5-room Flats: These are larger HDB flats, measuring between 110 to 120 square meters. They usually feature four bedrooms, two bathrooms, a kitchen, a service yard, and a spacious living and dining area. They are designed for larger families who need more living space and are an excellent choice for families who enjoy hosting guests.
5. Executive Flats: These are the largest HDB flats, with a floor area exceeding 130 square meters. In addition to the living/dining area, kitchen, and multiple bedrooms, they also feature extra spaces such as a study room or a utility room. Some executive flats may even come with a balcony. They cater to multi-generational families or families who prefer having a lot of living space.
Each of these flat types is thoughtfully designed to cater to different household sizes, lifestyle needs, and budget considerations. They all reflect HDB’s commitment to providing quality and affordable housing for everyone.
Eligibility Criteria
Buying an HDB flat isn’t as straightforward as purchasing private property. Eligibility criteria encompass citizenship, family nucleus type, income ceiling, and property ownership history. Buyers must either be Singapore citizens or have at least one Singapore citizen in the family nucleus. Also, the total household income must not exceed the prescribed income ceiling.
Buying Process
The purchase process involves applying for an HDB flat, either a Build-to-Order (BTO) or a resale flat. BTO flats are new units released by HDB at subsidized prices, while resale flats are existing HDB flats sold by current owners. The application process for both types includes submitting an application, obtaining a housing loan, and finally, the sales completion process.
Government Schemes for First-Time HDB Buyers
The Singapore government provides several grants and schemes for first-time homebuyers to make homeownership more accessible. These initiatives range from financial grants to special housing schemes, all designed to help first-timers on their homeownership journey.
There are several grants available for first-time buyers, including the Enhanced CPF Housing Grant (EHG), the Family Grant, and the Proximity Housing Grant (PHG). These grants can be used to offset the purchase price of a new or resale flat, substantially reducing the financial burden on first-time homebuyers.
These government schemes are a testament to Singapore’s commitment to making homeownership achievable for as many citizens as possible. The most important thing is to assess your eligibility, understand the application process, and consider which scheme would be most beneficial to your specific situation. It’s highly recommended to consult with a real estate professional or HDB officer to fully grasp what these schemes can offer.
Understanding HDB flats is crucial, whether you’re a first-time buyer navigating the home-buying journey or an investor looking at the Singapore real estate landscape. Remember, buying a home is more than just a financial investment; it’s about securing a space that meets your needs and resonates with your lifestyle.
2. Condominiums and Private Apartments
Stepping into the realm of private housing in Singapore, we find a vibrant spectrum of options. A particularly enticing segment of this market includes condominiums and private apartments, each offering a distinctive lifestyle, rich amenities, and an element of exclusivity. Let’s unravel the differences, delve into the unique features, and understand the nuances of purchasing these property types.
Firstly, let’s clarify what sets condominiums and private apartments apart. While they may seem similar, the primary distinction lies in the size of the development and the array of facilities offered.
Condominiums are typically larger developments and come equipped with a wealth of facilities such as swimming pools, gyms, BBQ pits, and tennis courts, to name a few. On the other hand, private apartments are often smaller developments and may not offer the same range of amenities.
Here’s a closer look at the facilities and amenities commonly found in these residences. Condominiums often feel like self-contained communities, with conveniences ranging from swimming pools, gyms, and playgrounds, to function rooms, BBQ areas, and sometimes even mini-marts. Most condos provide around-the-clock security services, providing residents with a sense of safety and peace of mind.
Private apartments, while offering a more modest range of amenities, still often feature essentials like car parking. Both housing types have units of various sizes, from studio apartments to penthouses, catering to different needs and preferences.
When it comes to pricing and cost factors, several variables come into play. The location of the property, its proximity to amenities like schools, shopping centers, and MRT stations, the age of the building, the quality of the fittings, and the range of facilities all have a significant impact on the price.
Condominiums, with their extensive facilities and larger land areas, usually come with a higher purchase price and monthly maintenance fees, which could be a financial stretch for some. Private apartments are generally more affordable in terms of both purchase price and maintenance fees.
Now, let’s touch on the eligibility criteria for these two housing types. As private properties, both condos and private apartments have less stringent eligibility criteria compared to HDB flats.
Regardless of citizenship or family nucleus, anyone can purchase these properties, provided they can afford them. However, do note that Additional Buyer’s Stamp Duty (ABSD) applies to certain profiles of buyers, such as foreigners, companies, or Singaporeans owning more than one property.
Whether you’re drawn towards the allure of condo living or the simplicity of a private apartment, the choice ultimately hinges on your personal needs, lifestyle preferences, and financial capacity. In the world of property investment, one size doesn’t fit all, and the best choice is always the one that aligns most closely with your unique circumstances and aspirations
3. Executive Condominiums (ECs)
Navigating the spectrum of Singapore’s residential landscape, we arrive at a unique housing type that beautifully straddles the public and private housing spheres: the Executive Condominiums (ECs).
Designed to cater to the ‘sandwich’ class – those who exceed the income ceiling for public housing but find private housing beyond their reach – ECs present an enticing blend of affordability and luxury.
Overview and Uniqueness of ECs
ECs are a class of their own. They are public housing developments launched by private developers, thus offering the best of both worlds. The allure of ECs stems from their hybrid nature; they are subject to HDB regulations and restrictions at launch but transition into fully privatised properties after 10 years. This unique feature offers the potential for significant capital appreciation and the opportunity to live in a condo-like environment at a lower price point.
Facilities and Amenities Commonly Found
ECs often boast a suite of facilities reminiscent of condominiums. Residents can enjoy amenities such as swimming pools, fitness gyms, BBQ pits, function rooms, and 24/7 security services. The interior layout and design of ECs mirror those of private condominiums, offering a luxurious living environment without the hefty price tag.
Pricing and Cost Factors
The price of ECs is typically lower than private condominiums due to the initial subsidised land cost. However, several factors can influence the final price, including the location of the development, its proximity to amenities and transport links, the reputation of the developer, and the quality of the fittings and finishes.
Distinction between ECs and Condominiums
While ECs and condominiums may appear similar in terms of physical attributes and facilities, they differ significantly in their ownership rules and restrictions. ECs, being a form of public housing initially, come with eligibility criteria, minimum occupancy periods, and resale restrictions. However, after 10 years, they are fully privatised and can be sold freely like any private property.
Eligibility Criteria
The purchase of an EC is governed by a set of eligibility conditions. The primary applicant must be a Singapore Citizen, and the family nucleus must include at least another Singapore Citizen or Permanent Resident. There’s also an income ceiling to consider. The maximum household income should not exceed $16,000 per month.
Buying Process
The buying process starts with shortlisting EC projects and submitting an e-application. Successful applicants will receive an invitation to book a unit. Buyers will then sign the Option to Purchase, secure a loan, and finally, complete the purchase by signing the Sales and Purchase Agreement.
Pros and Cons of Buying an Executive Condominium (EC)
Pros:
1. Affordability: ECs are generally priced lower than private condominiums due to the land cost being subsidized by the government. This makes them a more affordable choice for many Singaporeans who wish to enjoy the lifestyle of private condo living.
2. Potential for Appreciation: After the Minimum Occupancy Period of 5 years, ECs can be sold to Singapore Citizens and Permanent Residents, and after 10 years, they can be sold to foreigners. As the pool of potential buyers widens over time, the value of ECs often appreciates, making them a sound investment.
3. Similar Amenities to Private Condominiums: ECs come with a similar range of facilities as private condos, such as swimming pools, gyms, function rooms, and security services. This provides residents with a comprehensive and convenient lifestyle.
4. CPF Housing Grants: Eligible first-time buyers can apply for the CPF Housing Grants for ECs, further lowering the cost of the unit.
5. Newly Built Units: ECs are usually newly built units, which means they often feature modern designs and the latest home technologies.
Cons:
1. Eligibility Restrictions: There are eligibility conditions to purchase an EC, such as a minimum occupancy period of 5 years before the unit can be sold, and restrictions on who it can be sold to. These can limit the flexibility of EC owners.
2. Potential for Lower Quality Finishes: While ECs offer similar facilities to private condominiums, the interior fittings and finishes are sometimes of a lower quality due to the more budget-friendly price point.
3. Longer Wait Time: Since ECs are typically purchased directly from a developer before they are built, there can be a considerable wait time of around 3 to 4 years before the unit is ready for occupancy.
4. Limited Customization: Compared to landed properties, there are stricter rules and regulations governing what alterations and renovations can be made to the unit.
5. Monthly Maintenance Fees: As with private condominiums, EC owners are required to pay monthly maintenance fees for the upkeep of shared facilities and common areas.
ECs provide an interesting avenue for upwardly mobile Singaporeans to access the condominium lifestyle at a more affordable price. However, they also come with their unique set of conditions and restrictions. It’s essential to weigh the benefits and drawbacks, and most importantly, consider your financial standing and long-term property goals before making a decision.
3. Landed Property
In the landscape of Singapore’s residential property market, landed properties occupy a special niche. Synonymous with prestige, privacy, and ample living space, these homes are often the choice of those seeking a distinctive lifestyle. But what does owning a piece of Singapore’s scarce land entail? Let’s delve into the specifics.
Overview of Landed Property in Singapore
Landed properties are a segment of Singapore’s housing market that offers homeowners the luxury of private land. They stand in contrast to high-rise living, offering a sense of space, exclusivity, and the freedom to architecturally personalise your dwelling. With only about 5% of Singapore’s total housing stock being landed property, owning one is a mark of achievement and status.
Types of Landed Properties
Landed properties in Singapore are classified into five main types:
1. Terrace House: These are houses in a row of three or more, sharing a common boundary on both sides. They are the most common type of landed property and offer a mix of privacy and community living.
2. Corner Terrace House: Positioned at the end of a row of terrace houses, corner terraces enjoy additional garden space along the side. These houses offer more privacy and outdoor space compared to standard terrace houses.
3. Semi-Detached House: As the name suggests, these are a pair of houses joined side-by-side, sharing a common wall. Each semi-detached house typically has its garden and more space than a terrace house.
4. Detached House/Bungalow: These are standalone houses that do not share a wall with any other property, offering the highest degree of privacy. They come with their garden space and often have larger built-up areas.
5. Good Class Bungalow (GCB): These are the crème de la crème of landed properties in Singapore. To qualify as a GCB, a property must sit on a land area of at least 1,400 square meters. GCBs are located in designated GCB Areas, offering unmatched exclusivity and prestige.
Restrictions on Foreign Ownership
One significant aspect to consider when it comes to landed properties in Singapore is the restrictions on foreign ownership. Under the Residential Property Act, foreign persons are generally not allowed to purchase landed properties. However, exceptions can be made under certain circumstances, subject to the approval of the Land Dealings (Approval) Unit.
Eligibility Criteria and Buying Process
The buying process for landed properties is pretty straightforward. After identifying the property that suits your needs, an offer is made. Once accepted, the buyer will sign the Option to Purchase, secure the necessary financing, engage a law firm to handle legal matters, and finally, complete the transaction at the Singapore Land Authority.
Pros and Cons of Buying Landed Housing in Singapore
Pros of Landed Housing:
A. Exclusivity and Prestige: With only around 5% of all residential properties in Singapore being landed, the scarcity and exclusivity of these homes add a certain prestige to their ownership. As a landed property owner, you not only have a larger living space, but you also have a status symbol that speaks volumes about your success.
B. Space and Privacy: One of the most appealing aspects of landed property is the ample living space. With several stories, a private yard, and sometimes even a personal pool, landed properties provide room for large families or those who appreciate spacious living. Moreover, without shared walls (except for semi-detached and terrace houses), you enjoy more privacy and less disturbance from neighbours.
C. Freedom to Renovate: Owning landed property allows you the freedom to customize your house according to your preferences. Whether it’s the façade, interior layout, or backyard landscaping, you can make modifications that reflect your personal style and needs, subject to planning guidelines and building controls, of course.
D. Potential for Appreciation: Landed properties, particularly in land-scarce Singapore, often appreciate over time. Due to their limited supply and increasing demand, they can offer a significant return on investment in the long run.
E. Legacy and Long Term Investment: A landed property can be a legacy that you leave behind for your future generations. Given their value and desirability, these properties are often passed down through generations, providing a form of long-term security.
F. Car Parking Space: With a private driveway or garage, you will have one or more dedicated car parking spaces. This is a luxury in a city like Singapore where public parking can be challenging to find and costly.
G. Nature at Your Doorstep: Landed properties often have gardens, yards or patios, providing a green, tranquil oasis away from the hustle and bustle of city living. You’ll have space for gardening, barbecues, or simply relaxing outdoors, offering a better connection to nature.
Each of these pros contributes to a unique lifestyle that’s hard to match with other types of residential property. But, like any significant investment, it’s vital to consider these advantages in the context of your financial capacity, lifestyle preferences, and long-term property goals.
Cons of Landed Housing:
A. High Purchase and Maintenance Costs: Landed properties in Singapore are among the most expensive real estate options due to their scarcity and the prestige associated with them. Furthermore, the ongoing costs of maintaining a landed property, including landscaping, exterior upkeep, and potentially higher utility bills due to the larger area, can add up.
B. Potential for High Property Taxes: With their high value, landed properties can come with substantial annual property tax bills. These taxes, based on a percentage of the annual value of the property, can add a significant amount to the overall cost of ownership.
C. Renovation and Upkeep Responsibilities: While having the freedom to renovate is a perk, it also means you’re responsible for all maintenance, upgrades, and repairs. These responsibilities can be both costly and time-consuming.
D. Lack of Shared Amenities: Unlike condominiums and ECs, landed properties don’t come with shared amenities such as swimming pools, gyms, and function rooms unless you add them yourself.
E. Less Community Feel: While the privacy of a landed property is desirable for many, it can also result in fewer opportunities to socialise with neighbours, creating a less communal atmosphere than you might find in a condo or HDB complex.
F. Potential for Underutilisation of Space: With a larger living area, there’s also a risk that you may end up with more space than you need, which can feel wasteful or underutilised.
G. Lack of Security Services: Unlike condominiums or ECs, landed properties typically do not have dedicated security services. This means homeowners must take care of their own security measures, which can be an additional cost and responsibility.
H. Stricter Financing Rules: When it comes to securing a loan for a landed property, the Loan-to-Value (LTV) limits can be stricter than for HDB flats or condos, potentially requiring a larger upfront down payment.
While the cons listed do pose certain challenges, they should be viewed as considerations rather than deterrents. Understanding the responsibilities that come with landed property ownership can help you make an informed decision. And for those who have the means and desire, the benefits can far outweigh these considerations.
4. Cluster Housing
Cluster housing, or strata landed housing as it’s also known, offers a unique blend of features from both condominiums and landed properties. These residences are a collection of landed houses, built within a gated compound and set around a shared area of facilities. Each house within the cluster usually has its own private compound, along with access to a range of communal amenities.
Facilities and Amenities
In terms of facilities, cluster housing often includes shared amenities such as swimming pools, gyms, playgrounds, security services, and function rooms. This presents a unique hybrid offering, allowing residents to enjoy the benefits of both landed and communal living.
Pricing and Cost Factors
The price of cluster houses varies considerably, depending on factors such as location, size of the unit, the range of facilities provided, and the quality of finishes. Despite being landed properties, cluster houses are generally less expensive than standalone landed houses due to their smaller land area, yet they’re typically priced higher than condominiums due to the added privacy and exclusivity they offer.
Distinction between Cluster Housing and Condominiums
Cluster housing represents an intriguing middle ground between condominiums and traditional landed properties. While they share common facilities like a condominium, each house in the cluster also has its own private landed area. This gives residents a combination of the privacy and exclusivity typically associated with landed houses, alongside the community feel and shared facilities of condominium living.
Eligibility and Buying Process
The eligibility criteria and buying process for cluster housing are similar to those of private residential properties. Anyone, including foreigners, is eligible to buy cluster housing in Singapore. The buying process usually involves securing a bank loan, hiring a solicitor to handle the legal paperwork, and finally, transferring ownership of the property.
Pros and Cons of Cluster Housing in Singapore
Pros:
1. Hybrid Living Experience: Cluster houses offer a balanced blend of private landed living and shared amenities. This can provide the best of both worlds – the prestige and privacy of landed living, with the communal atmosphere and amenities of a condominium complex.
2. Shared Facilities and Services: Cluster housing developments usually feature a variety of facilities such as swimming pools, fitness centers, playgrounds, barbecue areas, and even function rooms. These amenities are maintained by the management, providing convenience and quality living to residents.
3. Security: Like condominiums, cluster housing complexes often have gated entrances and round-the-clock security personnel, providing an extra layer of safety and peace of mind for residents.
4. Less Maintenance: Unlike traditional landed properties, homeowners in cluster housing don’t need to worry about maintaining the shared areas and facilities as these are managed and maintained by a managing corporation.
5. Community Living: Cluster housing promotes a close-knit community due to the shared spaces and facilities. This can foster social interaction and create a sense of belonging among residents.
Cons:
1. Higher Costs: Cluster houses are generally more expensive than condominiums, considering their pricing factors into both the shared amenities and the landed space. Maintenance fees also add to the ongoing costs.
2. Limited Outdoor Space: Although cluster houses offer private landed space, it is often less than what standalone landed properties offer. This could be a downside for homeowners who desire a large private garden or yard.
3. Management Corporation Rules: Similar to condominiums, cluster housing is subject to rules and regulations set by the management corporation. These rules can restrict certain activities, such as pet ownership, and may also limit the scope for renovations.
4. Limited Availability: Cluster housing developments are not as widespread as condominiums or HDB flats in Singapore. This means there might be fewer options to choose from, particularly in preferred locations.
5. Potential for Less Privacy: Despite having individual land spaces, the close proximity to neighbors and shared facilities could mean less privacy compared to standalone landed houses.
As with any property type, potential buyers need to consider their specific needs, lifestyle preferences, and budget. Cluster housing is a unique proposition in the Singaporean property market and could be the perfect fit for those seeking a balance between landed and communal living. It’s important to do comprehensive research and possibly seek professional advice to ensure the choice aligns with one’s requirements and expectations.
FAQ
HDB flats are public housing units managed by the Housing & Development Board, available to Singapore Citizens and Permanent Residents. They are generally more affordable. Condominiums are private properties often equipped with facilities like pools and gyms, and can be owned by locals as well as foreigners, subject to certain restrictions.
ECs are a hybrid type of housing that falls between public and private housing. They are developed and sold by private developers, but are subject to certain regulations and restrictions similar to HDB flats for the first 10 years. After 10 years, they become fully privatised.
Singapore Citizens can buy any type of landed property. Permanent Residents need approval from the Land Dealings (Approval) unit if they wish to purchase landed property in non-restricted areas. Foreigners are generally not allowed to purchase landed properties, with some exceptions.
No, when it comes to purchasing private property in Singapore, there are no direct government grants or schemes available for first-time buyers. However, individuals can use their Central Provident Fund (CPF) to help finance the purchase or pay the monthly instalments for their private property under the CPF Residential Properties Scheme.
The process varies depending on the type of property. It typically involves choosing the property type, checking eligibility, finding a suitable property, securing a loan if needed, making an offer, signing the sales and purchase agreement, and finally, completing the transaction.
Yes, foreigners can buy private properties such as condominiums in Singapore without needing prior approval. However, for landed properties and certain apartments, foreigners need approval from the Singapore Land Authority. Foreigners are not eligible to buy HDB flats.
Yes, PRs can buy resale HDB flats in Singapore, but they are not eligible to buy new flats directly from HDB. PRs also need to form a family nucleus with another PR or a Singapore Citizen to purchase a resale flat.
Apart from the purchase price, other costs include the Buyer’s Stamp Duty, Additional Buyer’s Stamp Duty (if applicable), legal fees, agent’s commission (for resale properties), and home insurance.
Yes, under the Single Singapore Citizen Scheme, single individuals who are Singapore Citizens and at least 35 years old can buy a 2-room Flexi flat in a non-mature estate or a resale HDB flat.
Conclusion
In wrapping up, we’ve journeyed through the multifaceted landscape of residential housing in Singapore, navigating through the unique characteristics of each housing type, from public housing such as HDB flats to private options like condominiums, ECs, landed properties, and cluster houses.
We hope this comprehensive guide has provided you with invaluable insights, whether you’re a first-time buyer exploring your housing options, a seasoned property investor considering your next venture, or simply someone with an interest in Singapore’s dynamic real estate scene. Understanding these diverse housing types is key to making informed and effective property decisions.
Remember, while each type of housing comes with its unique pros and cons, the most suitable option ultimately depends on individual needs, lifestyle preferences, financial health, and long-term investment goals.
Always do your due diligence, consider your options carefully, and seek professional advice if needed. Our dedicated team of experienced real estate professionals in Singapore is ready to assist, offering tailored advice to suit your specific needs, budget, and lifestyle. We are just a call or click away, ready to guide you through every step of your housing journey. From discussing your specific needs and preferences, to planning and strategizing your purchase, our experts will ensure you make a well-informed and confident decision.
Whether you’re buying a landed property or a condo apartment or a HDB flat, we’re here to make your real estate experience as effortless as possible.
Buying a home is a significant decision and investment. Don’t leave your housing journey to chance. Reach out to our real estate professional today and turn your dream home into a reality. We’re committed to make your real estate experience as effortless as possible.
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