Rules for Singaporeans and PRs buying overseas property

By EdgeProp Singapore / EdgeProp | September 4, 2018 12:08 PM SGT
With the recent property cooling measures, more Singaporeans may be setting their sights abroad. However, unlike buying a property in Singapore, buying overseas properties may not be as straightforward.
Amongst the key concerns for these investors are the existing rules and regulations for Singaporeans planning to buy foreign properties. Below are some general rules and regulations for Singaporeans and Singapore Permanent Residents (PRs) planning to buy overseas property.
With the recent property cooling measures, more Singaporeans may be setting their sights abroad.
1) HDB owners who wish to invest in overseas residential properties can only do so after fulfilling the Minimum Occupation Period (MOP)
In general, HDB flat owners must occupy the flat for a minimum period of five years before they can sell the flat in the open market, rent out the whole flat, and invest in private property – both local and overseas. The MOP is applicable for both new and resale flats, and starts from the date you take possession of your flat.
There is no limit on the number of private properties you can acquire once you fulfill your flat’s MOP, and the private residential property acquired can be still under construction or ready for possession.
2) HDB owners who wish to invest in overseas non-residential properties can do so even before fulfilling the MOP
Non-residential properties are typically lumped under commercial real estate, which comprises the following property types: industrial, retail, offices, shophouses and mixed-developments.
Commercial properties can generally achieve higher rental yields. However, they also tend to be more volatile as the performance of a commercial property is closely tied to the growth of its sector. For example, if an industrial property is occupied by semiconductor manufacturers, then it will be closely tied to the performance of industry exports.
3) For HDB owners who are Singapore PRs, you will be required to sell your flat within 6 months of acquiring a residential property – both locally and overseas
As a HDB flat owner, you can choose to buy private residential properties locally or overseas if you fulfil the eligibility conditions that apply to your flat. This includes the five-year MOP.
However, if all owners of the flat...