Thomson View Condo is one of Singapore’s most desirable residential developments. Located along Upper Thomson Road, this spacious, mature estate is famous for its large unit sizes, tranquil surroundings, and excellent connectivity to the city.
If you’re an overseas buyer or investor considering purchasing a Thomson View unit, it’s critical to understand Singapore’s foreign ownership rules. Singapore has a well-defined property ownership framework designed to balance foreign investment and local housing interests.
In this comprehensive guide, you’ll learn:
- What qualifies as “foreign ownership” in Singapore
- The types of property foreigners can and cannot buy
- Rules that specifically apply to Thomson View Condo
- Stamp duties, taxes, and financing considerations
- Tips for navigating the process successfully
Let’s break down everything you need to know before making a move.
What Is Considered “Foreign Ownership” in Singapore?
Before diving into specifics, let’s clarify who is legally considered a foreign person under Singapore law.
According to the Residential Property Act, a “foreign person” is:
- Any individual who is not a Singapore citizen
- A Singapore Permanent Resident (PR)
- A foreign company
- A foreign society
Even if you hold PR status, you are technically classified as a foreigner for property ownership restrictions.
This distinction is important because Singapore imposes different rules depending on your residency status and the type of property you wish to purchase.
What Types of Properties Can Foreigners Buy in Singapore?
Singapore categorizes residential properties into restricted and non-restricted categories:
Non-Restricted Properties (Foreigners Can Buy Freely)
Foreigners can freely purchase:
- Condominium units
- Apartments in buildings classified as condominiums
- Strata-titled properties in approved developments
- Commercial properties (shops, offices)
- Industrial properties
This means that if a development has been approved as a condominium under the Planning Act, foreigners can generally buy individual units without special permission.
Thomson View Condo falls under this category because it is a strata-titled condominium development.
Restricted Properties (Require Special Approval)
Foreigners cannot purchase the following without specific approval from the Land Dealings Approval Unit (LDAU):
- Landed properties (bungalows, terrace houses, semi-detached houses)
- Strata-landed housing (cluster houses not within approved condominiums)
- Vacant residential land
- HDB flats and executive condominiums (ECs) that are less than 10 years old
Since Thomson View is not a landed property but a condominium, these restrictions do not apply to foreign buyers interested in a unit.
Is Foreign Ownership Allowed at Thomson View Condo?
Yes—foreigners are permitted to purchase individual units at Thomson View Condo without requiring special approval from the authorities.
Here’s why:
- The project is classified as a private condominium under Singapore law.
- It is strata-titled, meaning buyers own the unit space and share the common property.
- It is not landed or mixed-use residential land that would trigger restrictions.
This makes Thomson View Condo an attractive option for foreigners who want generous living spaces in a well-established neighbourhood.
Additional Considerations: Collective Sale and Redevelopment
One important detail about Thomson View Condo is its history of collective sale attempts. The development has been put up for en bloc sale multiple times.
If you buy a unit as a foreigner and the development is successfully sold en bloc, your ownership interest converts to a share of the sale proceeds.
From a regulatory perspective:
- Your eligibility to buy does not change because of en bloc potential.
- If redevelopment leads to a different property classification (e.g., landed homes), new ownership restrictions could apply to future buyers.
Always engage a lawyer to review en bloc clauses before you buy.
What Taxes and Stamp Duties Do Foreign Buyers Pay?
Another crucial aspect of foreign ownership rules is taxation and stamp duties.
In Singapore, all property buyers pay Buyer’s Stamp Duty (BSD). Foreigners must also pay Additional Buyer’s Stamp Duty (ABSD).
Here’s how this works:
Buyer’s Stamp Duty (BSD)
BSD applies to all residential property purchases and is calculated on the purchase price or market value (whichever is higher):
- 1% on the first SGD 180,000
- 2% on the next SGD 180,000
- 3% on the next SGD 640,000
- 4% on the remaining amount
For example, if you buy a Thomson View unit for SGD 2 million, the BSD would be:
1% x 180,000 = SGD 1,800
2% x 180,000 = SGD 3,600
3% x 640,000 = SGD 19,200
4% x 1,000,000 = SGD 40,000
Total BSD = SGD 64,600
Additional Buyer’s Stamp Duty (ABSD)
Foreigners are subject to a flat 60% ABSD on the purchase price or market value.
Using the same example (SGD 2 million unit):
60% x 2,000,000 = SGD 1,200,000 ABSD
This is in addition to BSD.
Because of the high ABSD, foreign buyers should factor in this significant cost when budgeting.
What About Financing and Loans?
Singapore imposes Loan-to-Value (LTV) limits that affect how much you can borrow.
As a foreigner:
- You can still get a mortgage from a Singapore bank.
- LTV ratios are capped at 75% if you don’t have an existing loan.
- If you have an existing loan, the maximum LTV falls to 45% or 35%.
- You must pay a minimum cash downpayment of 5% of the purchase price.
Keep in mind that the Total Debt Servicing Ratio (TDSR) framework applies. Your total monthly debt obligations cannot exceed 55% of your gross monthly income.
Are There Restrictions on Leasing or Selling?
Foreign owners of condominium units like Thomson View have no restrictions on:
- Renting out the unit
- Reselling to Singaporeans, PRs, or other foreigners
- Transferring ownership to eligible buyers
However, if you sell within the first three years, you must pay Seller’s Stamp Duty (SSD):
- Year 1: 12% of the selling price
- Year 2: 8%
- Year 3: 4%
- Year 4+: No SSD
This policy discourages speculative flipping of property.
Why Do So Many Foreigners Choose Thomson View Condo?
Despite ABSD and loan constraints, Thomson View continues to attract overseas buyers because of:
- Large unit sizes rarely seen in newer condos (some exceeding 2,000 sqft)
- Proximity to Thomson Plaza, Marymount MRT, and Upper Thomson MRT
- Well-established neighbourhood with schools and amenities
- Potential long-term capital appreciation if redevelopment occurs
- Quiet, green surroundings that appeal to families and retirees
Steps to Buying as a Foreigner
If you’re ready to purchase a Thomson View unit, here’s a simple step-by-step roadmap:
- Engage a Property Agent
- Choose an agent familiar with foreign buyer transactions.
- Obtain In-Principle Approval (IPA) for Financing
- Approach Singapore banks for loan approval before making an offer.
- Budget for ABSD
- Confirm you can cover the 60% ABSD and BSD in cash or CPF (if eligible).
- Negotiate the Purchase Price
- Make an offer through your agent.
- Exercise the Option to Purchase
- Pay the option fee (usually 1% of purchase price).
- Exercise within 14 days by paying the exercise fee (4%).
- Sign the Sale and Purchase Agreement.
- Pay Stamp Duties
- BSD and ABSD are payable within 14 days of exercising the Option.
- Complete Legal Checks
- Your lawyer will perform due diligence and lodge caveats.
- Complete the Transaction
- Remaining balance and legal fees are settled on completion date (typically 8–12 weeks after Option).
Tips for Foreign Buyers
Here are a few practical suggestions:
- Plan Financing Early: Banks are strict with LTV limits, so have a clear plan for cash outlay.
- Review Tax Treaties: Check if your home country has agreements with Singapore to avoid double taxation.
- Understand Residency Status: Becoming a Singapore PR may reduce your ABSD in future purchases.
- Factor in Maintenance Fees: Older condos often have higher sinking fund contributions.
- Stay Updated on Policy Changes: ABSD and ownership rules can change with new government policies.
Conclusion
Thomson View Condo offers spacious living in a prime Singapore neighbourhood. As a foreigner, you are legally allowed to purchase units in this development without prior approval, provided you comply with stamp duty, loan, and regulatory requirements.
While ABSD can significantly increase acquisition costs, many overseas buyers still see Thomson View as a worthwhile investment due to its location, generous layouts, and redevelopment potential.
Before making a decision, always consult with an experienced property lawyer and financial advisor to ensure you comply with all regulations.
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