Can Foreigners Buy Commercial Property in Singapore? (2025 Guide)

Introduction

Singapore is one of Asia’s most attractive real estate markets, thanks to its political stability, transparent legal system, and strong rental demand. While residential properties come with heavy restrictions for foreign buyers, commercial property is a different story. Many international investors ask the same question:

“Can foreigners buy commercial property in Singapore?”

The short answer is yes – but there are important details you need to know before making a purchase.

Can Foreigners Buy Commercial Property in Singapore?

Yes, foreigners are generally allowed to purchase commercial property in Singapore without restrictions. This includes:

  • Office units (strata or whole floor)

  • Retail shops (in malls or standalone)

  • Shophouses with commercial zoning

  • Industrial property (subject to zoning & usage rules)

Unlike residential property, foreigners do not need approval from the Land Dealings (Approval) Unit (LDAU) for most commercial properties.

Why This Matters for Investors

  • No ABSD (Additional Buyer’s Stamp Duty): Foreigners pay only Buyer’s Stamp Duty (BSD), not the hefty ABSD imposed on residential properties.

  • Lower entry barriers: Easier to enter the market compared to residential.

Exceptions: When Foreigners Face Restrictions

While most commercial properties are open to foreign buyers, there are exceptions:

  1. Mixed-use shophouses – If the shophouse has a residential component, foreign ownership may require approval.

  2. Landed properties zoned “Residential with Commercial” – These fall under the Residential Property Act, which restricts foreign purchase.

Always check the URA zoning of the property before purchase.

Stamp Duties for Foreigners Buying Commercial Property

Foreign buyers of commercial property pay the same Buyer’s Stamp Duty (BSD) as locals.

As of 2025:

  • 1% on first S$180,000

  • 2% on next S$180,000

  • 3% on next S$640,000

  • 4% on next S$500,000

  • 5% on next S$1.5M

No ABSD applies – this is a key advantage over residential property.
GST (9%) may apply if you are buying from a GST-registered seller.

Rates are accurate at the time of publication. Contact me for the latest rates

Financing Rules for Foreign Buyers

When a foreigner buys a commercial property in their own name, the loan assessment is based on their personal financial standing. 
  • Loan-to-Value (LTV): The maximum LTV limit is typically up to 80% of the property’s purchase price or valuation, whichever is lower. For investment properties, the LTV may be lower (60–70%).
  • Total Debt Servicing Ratio (TDSR): The individual must pass a TDSR assessment, with total monthly debt repayments capped at 55% of their monthly income. This includes all personal debt obligations.
  • Credit assessment: Banks will evaluate the borrower’s income, assets, existing liabilities, and credit score. Foreigners may face stricter scrutiny.
  • Higher cash outlay: The non-residential purchase means the loan cannot be serviced by Central Provident Fund (CPF) funds. A higher cash outlay is required for the down payment and other fees.
  • Loan tenure: Loan tenures for commercial properties are generally shorter than for residential properties, often capped at 30 years. 

Is It Worth It for Foreign Investors?

For many overseas investors, Singapore commercial property offers:

  • Stable rental income (offices, retail, industrial).

  • Capital appreciation potential (especially shophouses in CBD).

  • Diversification (safer than residential due to no cooling measures like ABSD).

Example:
A foreign investor buying a CBD strata office at S$3,000 psf pays BSD only, while a residential condo buyer at the same price point pays BSD + 60% ABSD (if a foreigner).

That’s a game-changer.

Practical Steps if You’re a Foreigner Buying Commercial Property

  1. Engage a realtor (familiar with zoning & foreign ownership rules).

  2. Check URA zoning carefully to avoid mixed-use restrictions.

  3. Calculate stamp duty & GST in advance.

  4. Secure financing early – loan approvals may take longer for foreigners.

  5. Consider exit strategy – rental yields, capital gains, and potential resale.

External Resources

Conclusion

So, can foreigners buy commercial property in Singapore?
Absolutely yes – with fewer restrictions than residential property.

With no ABSD, strong rental demand, and a limited supply of strata offices and shophouses, commercial real estate in Singapore remains a prime choice for foreign investors in 2025.

If you’re exploring opportunities, whether in offices, retail, or shophouses, feel free to reach out to us at ShophouseOffice.com for tailored advice and listings.