Purchasing property in Singapore, especially in the Core Central Region (CCR), can be a smart investment. The core central region, which is a part of the ‘‘central area of Singapore’ is considered prime real estate in the country and is highly favored by high-net-worth individuals, including locals and expats. 

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Properties in this part of Singapore are predominantly owned by investors and corporations due to financial security and potential high returns. Properties here are typically rented to expats or used for housing expat employees. Affluent locals are also moving into this area as it features luxury shopping, dining, and entertainment facilities. 

Buying Luxury Condos In Singapore’s Core Central Region

Singapore’s real estate market is divided into three key regions: the Core Central Region (CCR), the Rest of Central Region (RCR), and the Outside Central Region (OCR). These regions are essential for understanding property classifications and market trends, with each comprising specific districts that define their unique characteristics and appeal.

Let’s focus on the core central region (CCR) for now. 

The Core Central Region (CCR) of Singapore encompasses prime and central areas, including Districts 9, 10, and 11, which cover Orchard, Cairnhill, River Valley, Bukit Timah, Holland Road, Tanglin, Newton, and Novena. It also includes parts of Districts 1, 2, 6, and 7, featuring key business and city areas like Raffles Place, Marina, Tanjong Pagar, City Hall, Bugis, and Rochor. Additionally, Sentosa and Harbourfront in District 4 are part of the CCR.

Mortgages For Non-Residents For Property Purchases In Singapore

Singapore allows non-residents or “foreigners’ to purchase properties, including landed property or luxury condos, with certain conditions. The process is complex, but foreigners can invest in the property market.

However, when it comes to financing, non-residents in Singapore face limited mortgage options compared to citizens or permanent residents. Banks often enforce stricter lending criteria and require higher down payments, reducing financing flexibility and available choices. 

That said, non-residents can still get mortgages if they abide by the local regulations. However, it’s essential to compare condo bank loan options carefully to find the most suitable terms and rates.

Private Banking Mortgages

Singapore hosts various private banks from Asia and Europe, offering tailored mortgage solutions to clients who maintain wealth management relationships. To access these exclusive mortgages, buyers are required to transfer a minimum of SGD 2,000,000 in liquid assets as Assets Under Management (AUM). These private banks then align mortgage lending with the client’s broader wealth strategy, providing benefits that go beyond what traditional retail banks offer.

Private banking mortgages also offer flexible loan-to-value (LTV) ratios, potentially up to 100% through cross-collateralisation with financial assets. They feature interest-only payment options for better cash flow, competitive rates tied to Singapore Overnight Rate Average (SORA) and a bank margin, and tailored loan terms ranging from 5 to 20 years.  

For instance, a client purchasing a luxury property worth SGD 6,000,000 might secure the mortgage by leveraging a portfolio of SGD 3,000,000 in AUM. 

Bridging Loans 

Bridging loans are another practical mortgage solution for property buyers in Singapore who need quick access to funds. This is especially suitable for clients waiting for the sale of another asset or a major liquidity event like an IPO. These loans are designed to help buyers secure luxury properties without delays, ensuring they don’t miss out on prime opportunities.

In Singapore, bridging loans typically start at SGD 1,000,000 and are available to accredited investors—those with over SGD 2,000,000 in net assets or properties held through corporate entities. 

Singapore bridging loans offer up to 70% loan-to-value, competitive interest rates starting at 0.6% per month, and flexible terms of up to 5 years. This type of short-term financing offers a seamless way for buyers to act quickly in a competitive market.

Non-residents investing in Singapore’s luxury property market can explore exciting opportunities, from city-view condominiums to serene Sentosa Cove bungalows. However, they may face unique financing challenges in the process.