Foreign Buyer Property Due Diligence Checklist Singapore | Homejourney
The definitive guide for foreign buyers conducting thorough property due diligence in Singapore. This Homejourney pillar article provides a comprehensive checklist, current 2025 regulations, and insider tips to ensure safe, transparent transactions in a trusted environment.[1][2]
With ABSD at 60% for foreigners and strict ownership rules under the Residential Property Act (RPA), due diligence is critical to avoid costly mistakes. Homejourney prioritizes your safety by verifying data and offering tools like Property Search for secure property hunting.[1][4]
Table of Contents
- Executive Summary
- 1. Understanding Foreign Ownership Rules
- 2. ABSD and Tax Calculations
- 3. Complete Due Diligence Checklist
- 4. Property Types Foreigners Can Buy
- 5. Financing and Costs Breakdown
- 6. Common Mistakes to Avoid
- 7. Legal and Professional Support
- FAQs
- Next Steps with Homejourney
Executive Summary: Why Due Diligence Matters for Foreign Buyers
Foreign buyers face unique hurdles in Singapore's property market, including high ABSD rates of 60% and RPA restrictions on landed properties.[1][4] Proper due diligence protects against title defects, hidden liens, and regulatory pitfalls, saving millions.
Homejourney's checklist streamlines this process, drawing from official URA, SLA, and IRAS guidelines. In 2025, with cooling measures intact, expect median condo prices at S$2.2M in prime districts like D10 (Orchard/Tanglin).[1][2] Use our Projects Directory for verified project data.
Key Takeaway: Follow this checklist to verify property eligibility, financial viability, and legal compliance before signing any Option to Purchase (OTP).
1. Understanding Foreign Ownership Rules in Singapore
Residential Property Act (RPA) Overview
The RPA governs what foreigners can buy. Non-Singapore citizens and non-PRs are "foreign persons" and cannot acquire restricted properties without SLA's Land Dealings Approval Unit (LDAU) approval.[1][2]
Restricted properties include HDB flats, landed homes (bungalows, semi-Ds, terraces), shophouses (non-commercial), and service apartments.[1] Approval requires proving economic contribution, like 5+ years as PR and high taxable income in Singapore.[3]
Exception: Sentosa Cove landed properties get fast-track approval (2 days) but must be owner-occupied, no renting, with S$200K fine for breach.[1]
What Foreigners Can Buy Without Approval
Foreigners freely purchase condominiums, apartments, and non-landed private residential properties.[1][2] No limit on number, but cannot buy all units in a condo/EC building without approval.[1]
Executive Condos (ECs): Foreigners buy after 10-year Minimum Occupation Period (MOP); PRs after 5 years.[1] Use Homejourney's Projects to filter ECs by completion status.
Insider Tip: Check URA's Master Plan via EdgeProp Property News for future developments affecting your property's value.
2. ABSD and Other Taxes: 2025 Rates for Foreign Buyers
Additional Buyer's Stamp Duty (ABSD)
Foreigners pay 60% ABSD on first residential property, 65% for entities/trusts (up from 30%/35% in 2023).[4] Paid within 14 days of Sale & Purchase Agreement (SPA), on higher of price or market value.[1]
Example: S$2M condo = S$1.2M ABSD. Total stamp duties: ABSD + Buyer's Stamp Duty (BSD) up to 6% for >S$3M residential.[3]
| Buyer Type | 1st Property | 2nd+ |
|---|---|---|
| Foreigner | 60% | 60% |
| PR | 5% | 30-35% |
FTAs exempt some: US citizens (FTA) pay 0% like citizens; check IRAS for Iceland, Liechtenstein, Norway, Switzerland, India (limited).[5][6]
Link to our ABSD Calculator: ABSD Stamp Duty Calculator & Guide 2025 | Homejourney
BSD and Other Fees
Buyer's Stamp Duty: 1-6% tiered. Seller pays no ABSD. Legal fees: S$3K-S$5K; valuation: S$500-S$1K.[3]
3. Complete Due Diligence Checklist for Foreign Buyers
Use this step-by-step due diligence foreigner checklist. Homejourney verifies listings via Property Search for trusted results.
- Verify Eligibility: Confirm property type allowed (no HDB/landed without approval).[1][2]
- Title Search: Check Land Titles Registry for caveats, liens (SLA GoBusiness portal, S$20-50).[2]
- ABSD Calculation: Use IRAS tool; pay within 14 days.[1]
- Condo Inspection: Inspect facilities, leaks (hire QA specialist, S$800-S$1.5K).[3]
- URA Compliance: Ensure no plot ratio breaches via URA e-Plan.[2]
- Lease Details: Confirm 99-year/999-year/freehold tenure.[1]
- Maintenance Fees: Review MCST records for sinking funds (S$300-600/pm typical).[3]
- Neighbourhood Check: Walk MRT exits (e.g., 5-min to Orchard MRT from D10 condos).
Featured Snippet Table: Quick Checklist
| Stage | Action | Cost/Time |
|---|---|---|
| Pre-OTP | Title search, ABSD calc | S$50 / 1 day |
| Post-OTP | Condo inspection, valuation | S$2K / 1 week |
| Pre-SPA | Legal review | S$4K / 14 days |
Timeline: 4-8 Weeks Total
OTP (1-2% fee, 2-4 weeks validity), SPA (14 days ABSD), completion (8-12 weeks).[3]
4. Property Types Foreigners Can Buy: Pros & Cons
- Condos/Apartments: Most accessible; shared facilities. Avg price S$2M (D9/10).[1] Pro: Liquidity. Con: MCST fees.
- ECs (Post-10Y): Larger units, family-friendly. E.g., Parc Canberra (Yishun, post-MOP 2025).[1]
- Sentosa Cove Landed: Luxury, quick approval. Min S$5M, owner-occupy 5Y.[1]
- Commercial: No ABSD, but residential components restricted.[2]
Insider Tip: Avoid low-floor condos near MRT (noise); prefer mid-floor in D15 (Siglap) for value growth.
5. Financing and Hidden Costs for Foreigners
Loan-to-Value (LTV): 60% max for foreigners (MAS TDSR 55% debt service).[3] Check Bank Rates for latest mortgage rates (3.5-4% fixed 2025).
Hidden Costs: Agent 1-2%, renovation S$50K+, aircon servicing Aircon Services . Total add 10-15% to price.
Reference: Financing Options for Foreign Buyers in Singapore | Homejourney Guide
6. Common Mistakes Foreign Buyers Make (And How to Avoid)
- Mistake 1: Ignoring ABSD exemptions (e.g., US citizens).[5] Solution: Verify FTA status via IRAS.[6]
- Mistake 2: Skipping condo inspection – 20% find leaks/defects.[3] Solution: Hire certified inspector.
- Mistake 3: Buying restricted landed without LDAU.[1] Example: UK expat fined for terrace in Bukit Timah.
- Red Flag: Seller rushing SPA; always 14-day review.
Real Case: Foreigner bought S$1.8M condo with caveat; lost S$100K deposit. Homejourney flags such risks.[2]
7. Legal and Professional Support
Engage conveyancing lawyer (S$3-5K). Documents: Passport, proof of funds, FTA cert if applicable.[3]
Disclaimer: This guide is informational; consult professionals for advice. Homejourney connects you safely.
Related: Step-by-Step Property Buying Process for Foreigners | Homejourney
Frequently Asked Questions (FAQs)
Q: Can foreigners buy HDB flats?
A: No, strictly for citizens/PRs.[1]
Q: What's the ABSD for US citizens?
A: 0% under US-SG FTA.[5][6]
Q: How to conduct condo inspection?
A: Check structure, facilities; hire pro (S$1K).[3]
Q: Property check foreign buyer timeline?
A: 4-8 weeks pre-completion.
Q: Buying checklist foreigner for Sentosa?
A: Fast approval, but owner-occupy 5Y.[1]
Q: Due diligence foreigner costs?
A: S$5-10K total (searches, inspection, legal).
More in ABSD Stamp Duty Calculator and Guide 2025 | Homejourney Singapore
Next Steps: Start Your Safe Journey with Homejourney
1. Search verified properties: Property Search
2. Calculate costs: Bank Rates & ABSD tools
3. Book consultation for personalized due diligence.
Homejourney builds trust through transparency, feedback-driven improvements, and verified data – your safe path to Singapore property ownership.
