When it comes to purchasing private property on the island, foreigners and permanent residents are restricted to buying apartments (1) in buildings that are at least six stories high, or (2) any flat in a development approved as a condominium development, or (3) any non-residential, commercial or industrial property. For all other types of property, such as a landed residential property (e.g. detached or semi-detached house), or any vacant land zoned for residential use, foreigners and permanent residents must seek prior approval from the Controller of Residential Property Land Dealings (Approval Unit) office is at Shenton Way #27-02, Temasek Tower Singapore 068811. Tel: (+65) 6323 9853. The entire approval process takes about 3 months. For more information, you may wish to contact REDAS (Real Estate Developers' Association of Singapore) at (+64) 6336 6655.

Just as with real estate in most markets, pricing is dependent upon many variables, such as location, proximity to the MRT station, amenities, size and condition of the estate, the facilities provided, prevailing market conditions and whether it is a leasehold or freehold property.

Due to the current global credit crunch, property prices in Singapore have dipped slightly (average 2.9 percent to 5.6 percent for year 2008), and prices are expected to fall further. The Urban Redevelopment Authority, the government agency responsible for all developmental projects in Singapore, provides useful property market information that is updated every quarter, such as sale prices and rental rates of private properties. The website also provides information about the latest private residential property developments in the pipelines, for interested investors or home owners. For the latest figures and information, click here.

The minimum downpayment for a purchase of a residential property is 10 percent, of which 5 percent must be paid in cash, while the other 5 percent can be drawn from CPF savings (if there are CPF savings). With the easing of the housing loans restrictions, both foreigners and permanent residents can now take up a housing loan in Singapore for the purchase of property in Singapore. As of 2005, the maximum housing loan for private properties should not exceed 90 percent of the purchase price or value of the property, whichever is lower. In general, the exact amount of the loan is evaluated on a case-by-case basis by the bank. Certain conditions apply, such as minimum salary requirements and age (should be above 21 and below 65 years of age). For permanent residents with sufficient monies in their CPF accounts, the CPF Ordinary Account savings can be used to offset downpayments and monthly property repayments.

Third party fees include legal fees - due to the complexities involved, it is necessary to engage the services of a solicitor to complete purchase transactions. Other third-party fees would be stamp duty. Stamp duties start at 1 percent for the first SGD$180,000 of the purchase price, and go up to 3 percent for properties above SGD$360,000. Insurance, as such fire insurance, and a home protection scheme insurance (HPS) is required, if you use your CPF monies to pay for the monthly instalments. HPS are offered by many insurance companies.

One last consideration is property tax. The property tax payable per year is computed based on a percentage of the annual value of the property (which is the annual rent the property can fetch on the market). The property tax rate is 4 percent for owner-occupied residential properties and 12 percent for others. Refer to the section on Taxation in this country guide for more information about property taxes.