Can a single person purchase an HDB shop house?

Yes, singles can purchase HDB shophouses in Singapore, but there are specific requirements and considerations to understand.

Eligibility Requirements

Singles must be above 21 years of age and cannot be an undischarged bankrupt. These are the only basic requirements for purchasing HDB shophouses and commercial units. Purchases must be made by sole buyers only - joint purchases are not permitted for HDB commercial properties.

Types of HDB Shophouses

There are two main categories to consider:

HDB Shops without Living Quarters - These are purely commercial units that singles can purchase without additional restrictions.

HDB Shophouses with Living Quarters - These hybrid properties contain both commercial space and residential quarters. Singles can purchase these as they are classified as commercial properties by HDB, even though they contain residential components.

Important Considerations

Current Availability - HDB ceased selling shophouses directly to individual buyers from 1999, so singles must purchase from the resale market through existing owners.

Financing Options - Banks can provide commercial property loans for HDB shophouses. Since these are commercial properties, they won't be subject to the tighter loan-to-value ratios that apply to second residential properties.

Tax Implications - For shophouses with living quarters, the commercial and residential portions are taxed separately. The commercial section follows a flat 10% tax rate, while the residential quarters may qualify for owner-occupier rates if you live there.

GST Considerations - The commercial portion of shophouses with living quarters is subject to 7% GST when purchased from GST-registered companies, though the residential quarters are exempt.

ABSD - Additional Buyer's Stamp Duty only applies to the residential portion of shophouses with living quarters, calculated on the apportioned value of those quarters.

Singles have good opportunities to invest in HDB shophouses as these commercial properties offer flexibility that traditional HDB flats do not provide.