BUY AND SELL A SINGAPORE PROPERTY FROM THE COMFORT OF YOUR HOUSE

Singapore is a financial and wealth management hub. It attracts wealthy individuals from all over the world to invest in Singapore property. These property investors come from Asian, Europe and America. Singapore offers a range of family office services. These services include budgeting, insurance, charitable giving, wealth transfer, and tax services. They cater to the diverse needs of these entities. The Economic Development Board (EDB) reported in 2021 that 700 family offices were established. This showcases Singapore's growing appeal as a hub for wealth management.   Thriving Startup Ecosystem: Excellent Investment Opportunities Singapore's startup ecosystem is thriving, offering excellent investment opportunities in emerging industries such as Fintech, agritech, and cleantech. Additionally, there are over 300 private equity and venture capital managers available, along with more than 190 incubators and accelerators. These resources provide extensive support to businesses, mentoring and propelling them towards success. Consequently, tech companies seeking to expand into the Southeast Asian market view Singapore as the go-to destination. Furthermore, the government's Open Innovation Network and the Global Innovation Alliance are boosting the local startup community, helping these businesses expand into the global market. As a result, 15 companies, including Nium, Grab, Carro, and Ninja Van, have already achieved unicorn status.   Rising Singapore Property Prices  When considering to invest in Singapore properties, it is essential to look at the current market trends. According to the Urban Redevelopment Authority (URA), property prices in Singapore have proven to be resilient and goes higher in the long term. In 2022, prices of landed properties rose by 9.6%, and non-landed properties rose by 8.1%. The non-landed properties in CCR, RCR, and OCR increased by 4.8%, 9.7%, and 9.3%, respectively.  Source: URA's website However, the 4th Quarter of 2022 saw a modest 0.7% rise in non-landed property prices in the Core Central Region (CCR). This region is worth considering since the price increase was lower compared to the Outside Central Region (OCR) and the Rest of Central Region (RCR). By keeping up with market trends, investors can make informed decisions on where to invest in Singapore properties.   Growing Rental Market: Stable Rental Income for Investors and Landlords Singapore real estate market has seen significant growth in the rental transactions of landed and non-landed residential properties. In 2022, there was an increase of 28.1% and 29.8%, respectively. This trend indicates a growing demand for rental properties, creating potential opportunities for investors and landlords. You can rent out your property to generate rental income. This rental income can help to offset your monthly mortgage, part of which is going towards the principal repayment. During good times when the rental yield is attractive, some landlords achieve positive cash flow after paying off their mortgage and the condominium maintenance fee.   Property Supply Pipeline: Wider Selection and Better Deals for Buyers Around 32,100 units are expected to be completed in 2023 and 2024, which is twice the amount completed in 2021 and 2022. This meets the housing needs of the population and creates more competition among sellers. Increased competition could lead to lower prices and better deals for buyers. As a result, buyers will have a wider selection of properties to choose from, making it an ideal time to invest in the Singaporean real estate market.   No Capital Gains Tax The Inland Revenue Authority of Singapore (IRAS) is a statutory board under the Ministry of Finance of the Government of Singapore in charge of tax collection. IRAS do not impose capital gain tax when your residential property appreciates in value and you sell it for a profit, even if it is a million dollar gain.   Foreigners Eligible for ABSD Remission under Free Trade Agreements (FTAs) Under the respective Free Trade Agreements, Nationals or Permanent Residents of Iceland, Liechtenstein, Norway or Switzerland and United States will be accorded the same Stamp Duty treatment as Singapore Citizens.  Therefore, they do not need to pay a hefty 30 per cent Additional Buyer Stamp Duty (ABSD) when buying their first residential property in Singapore.    Strong Economy: Promising Outlook for Investors Singapore's political stability, low corruption rates, and transparent public institutions have anchored its position as one of the world's strongest economies. Singapore remains a popular choice due to its ease of doing business, modernised infrastructure, and strategic location in Southeast Asia.   Singapore's Monetary Policy and the Strength of the SGD Currency The monetary policy of Singapore focuses on the exchange rate, rather than the money supply or interest rate, and is managed by the Monetary Authority of Singapore (MAS). This approach allows the exchange rate to fluctuate within a specific band, with the MAS adjusting the supply of Singapore dollars to maintain the rate within that band. This differs from many other central banks, which prioritise interest rates. Recent news highlights the strength of the Singapore dollar (SGD). According to an article in the Straits Times on February 2, 2023, the SGD has been gaining strength steadily. It appreciated by 0.2% to 1.3038 per U.S. dollar (USD), reaching its highest value since January 2018. This increase is due to expectations of easing inflation and a less aggressive monetary tightening policy. The strong SGD currency is a reflection of Singapore's impressive economic performance. Singapore boasts a AAA sovereign credit rating, positive foreign currency reserves, and a strong current account surplus. In fact, its foreign exchange reserves stood at SGD 383.4 billion in January 2023, contributing to its reputation as a safe haven for investors. Overall, Singapore's thriving economy, wealth management services, vibrant startup ecosystem, increasing property prices at a steady pace, growing rental market, and property supply pipeline make it an attractive real estate investment destination. Its strong political and economic stability, coupled with its strategic location, offers a promising outlook for investors looking to diversify their portfolios. As Singapore continues to expand and develop, the opportunities for growth and investment are only expected to increase, making it a smart choice for long-term investment. 

First timer BTO flat applicants who turn down the opportunity to select a BTO flat when invited to do so will lose their priority status for one year. They will be deemed second-timers for a year in the computer ballot. Second-timers who accumulate one non-selection count will have to wait one year before they can apply for a flat again. HDB has decided to tighten the BTO flat selections with effective from August 2023 sales exercise due to the long queue.  Official statistics revealed that almost 40 per cent of BTO applicants do not book a flat when they had the opportunity. They either do not turn up or decline to book a flat at their selection HDB appointments.  Propertyforsale Managing Director, Mr Chia said these figures suggest that the 10,000 odd BTO applicants were not serious in getting their new flats.They deprived genuine BTO applicants who just want a roof over their heads.  “For some BTO applicants, they do not like low floors or west-facing units that get too much sunlight in the afternoon." "Such units are often difficult to sell and do not fetch a good price in the resale market after the 5-years MOP”, he said. BTO applicants get a queue number based on balloting and if there are units left when their number comes around, they will be invited to choose a new flat.  Often, the number of applicants exceeds the number of flats available by multiple times, especially for popular locations in mature estates.  In 2018, HDB allowed young couples aged 21 years old or above to defer their income assessment and apply for BTO flats early. Unfortunately, some have withdrawn their applications when their relationship failed to take off. These group of applicants will be  reduced as a result of this tightening in BTO applicantions from August 2023 exercises. What if my queue number is way behind and more than total number of flats available to choose? MND and HDB understand there may be cases whereby the applicants are left with very limited choices when they are invited to book their flats. In this regard, HDB will waive the non-selection count for applicants when there are 10 or fewer BTO flats to choose from; or five or fewer SBF flats to choose from. Family enjoys special benefits at HDB BTO balloting First-time family applicants have a better chance at balloting as they get two ballot chances while second-time family applicants are given only one. Moreover, up to 95 per cent of HDB’s BTO or Sales of Balance Flat (SBF) supply is set aside for first-timer families.  First-timer families also get an additional ballot chance for every subsequent BTO application in the non-mature estates if they had been unsuccessful two or more times.  A new First-Timer (Parents & Married Couples) or FT(PMC) priority category has been created to encourage Singaporeans to start a family. To be eligible, the married couple must be first time applicants, aged 40 and below and have a child. They will be entitled to three ballot chances instead of two. BTO Launches in February and May 2023 unaffected "Driven by fear of missing out (FOMO), overwhelming response is expected at the February and May 2023 BTO launches before the new HDB rule kicks in. It will be the first timer BTO applicants' final attempt without being penalized for not choosing a flat when told to do so," said Mr Chia. However, the non-mature estates located at Jurong West and Tengah may not appeal to the majority.

CapitaLand Development (CLD), the development arm of CapitaLand Group, has acquired JCube from CapitaLand Integrated Commercial Trust at a price of S$340 million on 24 January 2022. The Urban Redevelopment Authority (URA) has granted preliminary permission to redevelop JCube into a 40-storey residential apartments with commercial spaces on the first and second floors. This mixed development is part of the Singapore government's initiative to develop the Jurong Lake District (JLD) that revolves around four key themes: a hub for the future economy, a new paradigm of mobility, a smart and sustainable district, and a district of gardens and water. Once completed, Jurong Lake District will be one of the largest business districts outside the city centre, approximately 2.5 times the size of the Tampines Regional Centre. The project is expected to generate 100,000 new job opportunities and add 20,000 new homes to the region, making it a prime location for residents and businesses alike. JCube's Closure and Impact on the Skating Community The news on the impending closure of JCube on 6 August 2023 has upset ice-skating athletes who train at The Rink, Singapore's only Olympic-size ice skating rink which is located on level 3 of JCube. The Rink has been a hub for public performances and has collaborated with esteemed organisations like Island Ice Figure Skating Club and Singapore Ice Skating Association. The facility has also played host to several competitive skating events, including the first SEA Open Figure Skating Trophy held in September 2022. JCube shopping mall will be officially closed on 6 August 2023 at 10pm. Jurong Innovation District (JID) and Connectivity The addition of the Jurong Innovation District (JID) will establish Singapore as a leader in Industry 4.0, housing a manufacturing ecosystem of R&D centres, technology partners, training providers, and Factories of the Future. The new Jcube project will also have excellent connectivity, with links to the Jurong East MRT interchange on the North-South and East-West Lines, the upcoming Jurong Regional Line in 2027, and the Cross Island Line in 2030. It will also be connected to Westgate and IMM Building via J-Walk, a covered elevated pedestrian network in the Jurong Lake District. JCube will be linked to the upcoming Jurong East Integrated Transport Hub which offers an air-conditioned bus interchange, public library, community club and sports centre. The location can be accessed by Ayer Rajah Expressway (AYE) and Pan Island Expressway (PIE). Potential Long-Term Investment Opportunity This mixed residential development at JCube presents a potential long-term investment opportunity, as the area is expected to undergo significant infrastructural improvements and development, which can increase the value of the properties in the area over time. Property analysts estimated that Capitaland will be selling the new launch project at S$2,000 to S$2,100 per square foot (per sq foot) for the apartments at JCube to meet the high demand given the lack of new condominium launches at Jurong in recent years. The launch of the JCube apartments is expected in the second half of 2023, with completion expected in 2027. 

The buyer's stamp duty (BSD) rate for both residential and non-residential properties will increase with effect from 15 February 2023. For residential properties, the portion of the value in excess of S$1.5 million and up to S$3 million will be taxed at 5 per cent, up from the current rate of 4 per cent. The value of the property in excess of S$3 million will be taxed at 6 per cent. The changes will apply to all properties acquired from Wednesday, and are expected to affect 15 per cent of homes, said Mr Lawrence Wong, Singapore Finance Minister. For non-residential properties, the portion of the value in excess of S$1 million and up to S$1.5 million will be taxed at 4 per cent, while that in excess of S$1.5 million will be taxed at 5 per cent, up from the current rate of 3 per cent. These changes are expected to affect 60 per cent of non-residential properties. Transitional Provision If the Option to Purchase (OTP) was granted to buyers on or before 14 February 2023, the current stamp duty rates shall apply provided that the OTP has to be exercised on or before 7 March 2023 or within the OTP validity period, whichever is earlier. Example of New BSD Payable If the price for a 3-bedrooms condominium is S$2 million, the buyer would need to pay an additional S$5,000 of BSD to Inland Revenue Authority of Singapore (IRAS) under the new regime. However a 4-bedrooms luxurious apartment in the Core Central Region (CCR) with a selling price of S$10 million, the difference in buyer stamp duty would be S$155,000. BSD Before and After Rate Chart Rationale of Increasing the Buyer's Stamp Duty With the reopening of China economy, foreign investors are expected to fly to Singapore and buy properties.  The Government does not discourage them from buying Singapore residential or commercial properties.  The increase in buyer's stamp duty (BSD) rate is expected to generate an additional S$500 million in revenue per year for the Government according to Mr Wong who is also Deputy Prime Minister (DPM). The lower income group will stand to benefit indirectly as the more well-to-do pay more taxes as a result.

CPF housing grants for a first-timer buying a resale 4-room flat or smaller will increase by S$30,000 to as much as S$80,000 according to Finance Minister Lawrence Wong in Budger 2023. For buyers of a resale 5-room flat or larger, the housing grant will go up from S$40,000 to S$50,000.  First-timer refers to families who have not enjoy any housing subsidies in the past. To be eligible for the grant, they must not own any private property and their income should not be more than S$14,000 a month. First-timer singles buying resale flats will receive more grants too, but at half that of families. From S$25,000 to S$40,000 for singles buying a 2 to 4-room resale flat, and from S$20,000 to S$25,000 for buying a 5-room resale flat.   The income ceiling for singles buying HDB flat is S$7,000. The increased grant takes effect from 14/02/2023 for resale applications submitted from 3.30pm. The additional grant amount will be credited to the respective first-timer buyer's CPF account from April onwards. Deputy Prime Minister Lawrence Wong has committed to implement measures to help first-timer families with children, as well as young married couples aged 40 years old and below, who are buying their first home. Details to be unveil by the Ministry of National Development (MND) at Committee of Supply later this year. Eligible families can be entitled to S$190,000 in grants when buying a resale flat by combining CPF Housing Grant, Enhanced CPF Housing Grant (EHG) and the Proximity Housing Grant. The Enhanced CPF Housing Grant is for those buying from HDB or resale flats, and the grant amount depends on the applicants' household income. To qualify for EHG, the monthly household income for first-timer families should not exceed $9,000 (refer to Table 1 below). The buyer or his/her spouse must also be in continuous employment for the 12 months prior and remain working at the point of flat application. Eligible first-timer singles must be aged 35 and above, with a monthly income of up to $4,500 in order to be eligible for EHG.  The Proximity Housing Grant (PHG) is for those buying a resale flat to live with or near their parents or their child. Case Study on Housing Grants A family with a monthly household income of S$1,500 or less, and living with their parents or children, can get a Proximity Housing Grant (PHG) of S$30,000, a CPF Housing Grant of S$80,000 if buying a smaller resale flat and another S$80,000 in Enhanced CPF Housing Grants. The total housing grants is therefore S$190,000. Expert Opinions on Higher Housing Grants "HDB resale price in 4-room flats will be prop up by the beneficaries of these increased housing grants", said Mr Chia, Managing Director of Propertyforsale Pte Ltd. The cooling measure of 15-month wait out period implemented in September 2022 did not stop private homeowners aged 55 and above from downgrading to a 4-room or smaller resale HDB flat.  “The Government do not intend to bring down the resale HDB price but to make it more affordable for eligible first timers to buy it,” said Chia.