Full guide for any Singaporean buying property in Australia
If you’re a Singaporean buying property in Australia you’re not alone. It’s a popular place to invest in property, as well as a good choice for people buying a second home for vacations, or to live in when working or studying overseas. This guide covers how to buy property in Australia as a non-resident.
We’ll cover all you need to understand the purchase process, and because buying a property is always a big investment, we’ll also touch on providers like Wise and OFX as good options to make cheap, fast and safe international transfers which could cut your costs when you buy.
Can Singapore citizens buy property in Australia?
So - can foreigners buy property in Australia? The answer here is yes, but there are a few requirements and rules.
You’ll need to comply with Australian rules which ask foreigners investing in real estate to apply through the Australian Tax Office (ATO) for either an approval - if you know the property you want to buy - or an exemption, which allows you to house hunt for up to 12 months with pre-approval on certain purchase types.
Generally, foreigners can buy many types of property, but some are out of bounds for non-residents. You’ll usually be OK to buy newly built property, or land if you’re planning to develop it soon. But buying an existing home can be harder if you’re not going to use it immediately to live in.
Don’t forget also requirements which are set in Singapore - such as meeting the minimum occupation period (MOP) on your HDB. before this time is up, you can’t buy another private property at home or abroad.
What are the requirements to buy a house in Australia?
To buy a house in Australia you’ll need to make sure you comply with the ATO rules for foreign real estate investment. You’ll also need some important paperwork like your ID document, proof of address, and proof of the source of funds you’re using to buy the property. Your legal guidance in Australia - usually a lawyer or conveyancing expert - can guide you through what's needed so you can prepare in advance.
How to buy a home in Australia step by step
Buying a property overseas is daunting, but the process in Australia is relatively straightforward as long as you have appropriate local support on hand:
Start your property hunt, and engage a lawyer or conveyancing service to act on your behalf.
Start your property search online and engage a lawyer for when it’s time to negotiate and finalise the purchase. Having a good legal team on hand is essential - pick someone who works with Singaporeans often as they’ll know the sort of questions you’re likely to have.
- Make an offer and sign contracts - you’ll need to make a deposit payment.
Once your offer is accepted you may be asked to pay a deposit. In some states you need to also take out property insurance at this point - have your lawyer help with any legal duties which may now fall on your shoulders.
- Complete property inspections.
The next step is to complete a due diligence check, which your conveyancing team can manage. The required checks will include property surveys and pest checks, as well as legal requirements. A period of conveyancing follows where the sellers lawyers will talk to your team to iron out the finer points of the sale.
- Settlement day - pay your outstanding costs and the property is yours.
Once everything is checked it’s time to book in settlement day - the day your property legally becomes yours. This process requires the seller to settle any dues on the house, such as outstanding taxes, before you pay the remaining amount of the sale price and any tax of your own.
Buying a property in Australia as a Singaporean will mean paying the deposit, legal costs, final sale value and fees - usually with overseas transfers. When you’re sending money overseas from Singapore, using a specialist provider like Wise could mean you get a faster service - and a lower fee - compared to using your bank. Be sure to shop around before you make any international transfers, to keep down your costs as far as possible, and avoid unnecessary fees and delays.
How much does it cost to buy property in Australia?
The average property price in Australia is 973,300 AUD at the time of writing - that’s around 865,000 SGD. Naturally this covers a very broad range of property prices depending on where in the country you’re buying and the type of house you want. It’s helpful to note the difference in costs per square metre on average between Singapore and Australia, though. This gives a bit of a guide to what you may find once you start your property hunt:
| Cost per square metre in city centre | Cost per square metre outside city centre | |
|---|---|---|
| Australia | 9,514.66 SGD | 6,958.75 SGD |
| Singapore | 28,064.06 SGD | 18,340.85 SGD |
*Date from Numbeo.com; 3rd October 2024
As you can see - while the averages mask a range, the costs of buying property in Australia are pretty competitive when you compare them to the market in Singapore.
Of course, it’s not just about the cost of the property itself. In addition to property costs, international transfer fees and marked up exchange rates can also push up the costs when you’re making an overseas property purchase. Non bank providers like Wise and OFX offer cheap, fast and secure international transfers and can even give discounted rates for higher value payments:
Wise: Send money online or in app with the mid-market rate and low fees - discounts available for higher value transfers
OFX: No transfer fee, with competitive exchange rates and a 24/7 phone option to talk through your needs with an advisor
Take a look at these providers compared to your bank - to see if you can cut out a few fees here to bring down your overall cost.
Cheapest places to buy property in Australia
Often, the very cheapest places to buy property in Australia aren’t the most practical either as a base for working, or for rental. For example, one of the cheapest places in the country, Coober Pedy, is known as the opal capital of the world. It’s certainly a striking place - but it’s not within reach of any of the major cities you’re likely to need to be in, thanks to its rural location in South Australia.
For most Singaporeans buying a property in Australia, value is pretty relative. What is likely to make more sense is to start with the general part of Australia you want to live in - the city or cities which appeal, or which you’ll be easily able to visit. Then look at some of the less well known suburbs of those cities which are likely to have lower prices compared to living in the very central areas. By looking to keep the convenience of being in the city, but gain the lower price of a suburban home, you’ll likely find a combination to suit your needs.
Factors affecting the house prices
House prices in Australia are rising, thanks to an ongoing shortage of homes. A short supply and rising demand means that the prices are pretty hot right now - although many other factors also impact the costs of any property you might be considering.
Australia is huge, and so location is a primary driver of cost, as well as a property type and size. Because you can use umbrella real estate websites for research - we’ll have some good agents to look at, a little later - you’ll be able to get a feel easily for which locations might suit your preferences and budget.
Ongoing costs of buying a home in Australia
The ongoing costs of a home in Australia may not be the same as those you experience in Singapore. Get good local legal advice to make sure you comply with all the rules and don't let your new home depreciate in value through neglect. Here are a few things to think about:
Property tax - you may pay higher taxes if you’re not a legal resident of Australia
FIRB vacancy fee - payable if you leave a property empty for over 6 months
Mortgage interest - if you finance your purchase with a loan
Maintenance and repairs - costs of upkeep and maintenance on the property, whether or not you live there
Utilities or security - any ongoing bills you’ll need to cover, when you're living in the home
Is it a good idea to buy a house as an investment in Australia?
There are risks and challenges associated with buying property for investment purposes in any country, so doing your research is essential. The value of your property might go down, or rules over foreign ownership of homes might change. Your situation might also change in future, making overseas home ownership burdensome. Before you buy, get some professional advice to make sure you’re confident in your decision.
It’s also helpful to find ways to keep down the costs of buying a property in Australia as a Singaporean - such as ways to make foreign transfers fast, convenient and cheap with a provider like Wise or OFX.
Pros and cons of buying property in Australia
Let’s look at a few benefits and drawbacks of buying property in Australia as a Singaporean:
Pros:
Property prices can be much cheaper than at home in some areas
Common destination for travel, study and work, making a home a long term investment proposition
Non-residents can buy or develop many property types
Cons:
You’ll need to get approval or exemption from the ATO as a foreign buyer, and not all properties are available to you
Singapore's HDB minimum occupancy rules apply which may prevent you from buying a private property
You may pay additional property tax as a foreign or non-resident buyer
Should you rent or buy a house in Australia?
If you’re moving to Australia for work or study, you may be in two minds about buying or renting a property there. Buying as a resident may mean you avoid some of the non-resident additional costs, but it does mean you’re substantially committed to one location - not ideal if you need to change jobs or cities. Renting can be more flexible if you’re not completely sure how long you’ll be in the country, and want time to figure out the right place to commit to a purchase.
What’s the property market like in Australia?
Singaporeans are tempted to invest in property in Australia, in many cases, because it's a stable and economically prosperous country, with a long term history of rising property prices. As it’s far larger than Singapore there are many more options for buying a property, and with housing shortages predicted to continue, prices are expected to also continue their rise.
It’s worth noting that these ongoing price rises are one of the factors which are making it more difficult to buy in Australia as an investor. To make sure that properties are available for Australian residents, the ATO may impose additional costs on foreigners buying land and not developing it, or leaving homes unoccupied in the longer term, for example. If you’re thinking of buying a property in Australia, do keep an eye on developments in law and policy which may further impact foreign investors.
Financing a property purchase in Australia
If you’re thinking of financing your purchase with a mortgage or loan sourced in Australia you may need to work with a broker to secure the best deal available. Australian banks do offer non-resident mortgage products, but they can often have far higher interest rates than those available to resident customers. A broker can help you navigate this and find the best deal for your specific needs.
If you’re paying for your new property using international transfers, bear in mind that moving money from SGD to AUD can be extremely expensive with a bank. Consider using an alternative like Wise instead for a seamless and cheap transfer to Australia.
Paying property tax in Australia
Property tax in Australia can include taxes from the government and state, and may vary depending on whether you’re a resident or non-resident home owner. Get professional advice before you start your property purchase to make sure you know what taxes you’ll need to pay - at the point of purchase and on an ongoing basis.
Tips for foreigners to buy property in Australia
Let’s get a few final tips on buying a property in Australia as a Singaporean:
Before you buy, you’ll need to get an approval or exemption from the ATO as a foreign buyer
If you’re non-resident you might find there are additional costs when you buy, or on an ongoing basis if you buy a place and leave it empty
You can’t buy another private property if you’re in your HDB’s MOP - double check to stay the right side of the law here at home
Don’t forget, owning a property does not give you the right to reside in Australia - check out all the visa options open to you before you buy
When sending money to Australia for your purchase, check out and compare a few different money transfer services to make sure you get the best available deal
How to find an Australia property
Online platforms, real estate agents, and local listings are the best sources for information about Australian properties. Umbrella websites let you filter and search so you can compare the property prices and house types available in different places in Australia. Once you’ve built an idea of where you want to look, engaging a local agent who knows your search area is a quick way to get into the available properties - you can also have local friends in Australia help with word of mouth recommendations.
Australia property websites
Some of the most popular websites to look for Australian properties to rent or buy include:
Conclusion
Buying a property in Australia is feasible as a home, second home or investment - but there are a few important rules on foreign home ownership you’ll need to know about. As with any overseas property purchase you’ll want to get good local legal advice before you proceed, and shop around to make sure you’re buying the right place for your own individual needs.
This guide should be enough to start your search for a new home in Australia. Keep down the costs of buying your property, with providers like Wise and OFX which can offer fast, cheap and secure international transfers, with good exchange rates.
FAQs on Buying Property in Australia
Yes. But as a foreigner buying property in Australia you’ll have to apply through the Australian Tax Office (ATO) for either an approval or an exemption, which allows you to house hunt for up to 12 months with pre-approval on certain purchase types. Not all properties can be bought by overseas and non-resident buyers.
10% is the normal amount for a deposit on a property in Australia, although some sellers or mortgage lenders may suggest a deposit of 20%.
Australia is a stable country, with a long term history of rising property prices. With housing shortages predicted to continue, prices are expected to also continue their rise. This can be attractive if you’re looking for an investment - but bear in mind that housing prices can change rapidly, and there are also rules to make sure foreign buyers don’t crown out local purchasers, which can mean higher costs as a Singaporean buying property in Australia.