The Complete Step-by-Step Property Buying Process for Foreigners in Singapore
Buying property as a foreigner in Singapore is absolutely achievable, but it requires navigating a distinct regulatory framework, understanding substantial tax obligations, and following a precise sequence of steps that typically spans 8–14 weeks from offer to key collection.[1][2] Unlike Singapore citizens and permanent residents, foreign buyers face the 60% Additional Buyer's Stamp Duty (ABSD) on all residential purchases, stricter financing conditions, and eligibility limitations that exclude HDB flats and most landed properties.[1][2] This guide walks you through each critical phase with actionable advice, real cost breakdowns, and insider tips so you can move confidently from property shortlist to ownership.
At Homejourney, we prioritize your safety throughout this journey. Our verified property data, transparent tools, and step-by-step resources ensure you understand every rule, every cost, and every deadline before you commit your capital. This is not just a transaction—it's a major financial decision, and you deserve clarity and trust at every stage.
Step 1: Confirm Your Eligibility and Understand What You Can Buy
Before viewing a single property, confirm exactly what types of properties you are legally permitted to purchase under Singapore's Residential Property Act and Singapore Land Authority (SLA) rules.[1][2] This foundational step prevents disappointment and wasted time pursuing ineligible properties.
What foreigners can buy freely without approval:[1][2]
- Private condominiums and apartments in buildings with more than 6 storeys
- Strata-titled units in residential developments
- Fully-privatised Executive Condominiums (ECs) that are at least 10 years old
- Commercial and industrial properties
What foreigners cannot buy:[1][2][4]
- HDB flats (public housing) under any circumstances
- Executive Condominiums less than 10 years old
- Landed properties on mainland Singapore (with rare exceptions)
- Vacant land
- Apartments in buildings with fewer than 6 storeys
Limited options requiring SLA approval:[1][2] Landed properties in Sentosa Cove are generally accessible to foreigners, but mainland landed homes require formal approval from the SLA's Land Dealings (Approval) Unit—a process that is rarely granted. You can submit an in-principle approval application at the SLA's GoBusiness portal even before identifying a specific property.[6]
Homejourney insider tip: Use Property Search to filter verified condominiums in foreigner-friendly districts such as Holland Village, Novena, East Coast, and Orchard, where strong rental yields and established expatriate communities make these areas popular choices. This ensures every listing you view genuinely matches your eligibility.
Step 2: Calculate Your Total Costs, Including the 60% ABSD
Foreign buyers must account for substantially higher costs than Singapore citizens. The 60% ABSD, introduced in April 2023 and unchanged through 2026, is the single largest cost component and must be paid within 14 days of exercising your Option to Purchase.[1][3]
Cost breakdown for a S$2 million private condominium:[3]
- Purchase price: S$2,000,000
- Buyer's Stamp Duty (BSD): approximately S$60,000
- Additional Buyer's Stamp Duty (ABSD) at 60%: S$1,200,000
- Legal and conveyancing fees: S$3,000–S$5,000
- Property valuation fee: S$500–S$1,500
- Mortgage insurance (if applicable): 0.3–0.5% of loan amount
- Total stamp duties and fees: approximately S$1,263,500–S$1,266,500
On a S$2 million purchase, you will remit S$1.2 million in ABSD alone—a punitive rate designed to prioritize housing for citizens and permanent residents while cooling speculative foreign demand.[3] This means your true all-in cost is not S$2 million but approximately S$3.26 million when stamp duties and professional fees are included.
Critical action: Use ABSD Stamp Duty Calculator & Guide 2026 | Homejourney to calculate your exact ABSD liability based on the property's purchase price or valuation, whichever is higher. Many foreign buyers underestimate this cost and face a shortfall when funds are due.
Step 3: Secure In-Principle Approval (IPA) from a Bank
Before making any offer, apply for In-Principle Approval with one or two banks. This preliminary credit assessment confirms the bank's willingness to lend and is valid for 30 days, giving you confidence to negotiate and make an offer.[3] Sellers and agents expect proof of financing before granting an Option to Purchase; an IPA demonstrates serious intent.
Documentation package required for mortgage approval:[3]
- Valid passport and current visa or work pass
- Latest employment contract or letter of appointment
- Last three to six months' payslips or bank statements showing salary credits
- Latest Notice of Assessment (NOA) from IRAS or home-country tax authority for the past two years
- Overseas credit report if you have borrowings or credit history outside Singapore
- Bank statements from your home country evidencing savings and deposit source
For salaried expatriates with straightforward income, IPAs typically arrive within three to five business days.[3] Submit your complete document pack to accelerate the process. Homejourney recommends consulting Financing Options for Foreign Buyers in Singapore 2026 to understand current loan-to-value limits, interest rates, and which banks actively lend to foreign buyers.
Step 4: Find Your Property and Negotiate Terms
Once you have IPA in hand, begin your property search in earnest. Use Homejourney's Property Search to filter condominiums by district, price range, and amenities. When you identify a property you wish to purchase, negotiate price and terms directly with the seller's agent.
Key negotiation points:
- Purchase price (the base figure against which ABSD is calculated)
- Option fee (typically 1% of purchase price, non-refundable if you walk away but credited if you proceed)
- Option period (usually 14 or 21 days to decide whether to exercise the OTP)
- Completion timeline (typically 8–12 weeks from OTP exercise)
- Chattels and fixtures included in the sale
The option fee is due the day you receive the signed Option to Purchase, typically via cashier's order or bank transfer.[3] This is a non-refundable commitment, so ensure your legal advisor has cleared the property before you pay.
Step 5: Engage a Conveyancing Lawyer and Conduct Due Diligence
Within 24 hours of securing the OTP, instruct a lawyer specializing in Singapore property conveyancing to conduct comprehensive title searches, verify encumbrances, check MCST records for outstanding maintenance arrears or disputes, and review the draft Sale and Purchase Agreement.[3] This step is non-negotiable and protects you from hidden liabilities.
Your lawyer will verify:
- Clear title to the property with no caveats or legal claims
- MCST financial health and any pending special levies
- Unpaid property tax or outstanding utilities
- Planning violations or building defects
- Lease terms (for leasehold properties)
- Mortgage or charge against the property
Singapore conveyancers are efficient; expect a preliminary report within a few days.[3] If red flags surface—such as caveats, unpaid property tax, or planning violations—your lawyer will advise whether to proceed or abort before you exercise the option and trigger stamp duty obligations.
Step 6: Exercise the Option to Purchase and Pay Stamp Duties
Before the option expiry date, sign the OTP acceptance and pay the balance of the deposit to bring the total to 5% of the purchase price.[3] At this moment, you are contractually bound to the purchase, and both BSD and ABSD are triggered. You have 14 days from exercising the OTP to pay stamp duties to the Inland Revenue Authority of Singapore (IRAS).[3] Late payment incurs penalties, so coordinate closely with your lawyer, who will typically handle e-stamping on your behalf.
Payment timeline:
- Day 0: Exercise OTP and pay 5% deposit
- Days 1–14: Pay BSD and ABSD to IRAS (your lawyer typically manages this)
- Weeks 2–12: Mortgage finalization, valuation, and legal completion
Do not miss the 14-day stamp duty deadline. Penalties are steep and will increase your total cost.
Step 7: Finalize Your Mortgage and Property Valuation
Notify your bank immediately after exercising the OTP and provide a copy of the signed Sale and Purchase Agreement. The bank will order an independent property valuation, typically completed within one week.[3] This valuation is critical: if it comes in below your purchase price, the bank will lend against the lower valuation amount, and you must top up the shortfall in cash from your own funds.[3]
Once valuation is complete and meets or exceeds your purchase price, the bank issues the formal Letter of Offer. Review all terms carefully, including interest rates, lock-in clauses, prepayment penalties, and fee schedules before signing and returning the Letter of Offer to the bank. The bank's solicitors will then prepare mortgage documents for execution closer to completion.
Homejourney recommendation: Compare current mortgage rates and terms across banks using Financing Options for Foreign Buyers in Singapore 2026 to ensure you secure the most competitive offer before committing.
Step 8: Complete Legal Conveyancing and Collect Your Keys
In the final weeks before completion, your lawyer and the bank's solicitors will coordinate the execution of mortgage documents, prepare the completion statement, and arrange funds transfer. On completion day, the seller's lawyer receives the purchase funds and ABSD payment, and the property is formally transferred to your name at the Singapore Land Authority.
After completion, you will receive the keys and can take possession. Your lawyer will lodge the mortgage at the SLA, and within a few weeks, your name will appear on the official land register as the registered proprietor.
Common Mistakes Foreign Buyers Make—And How to Avoid Them
Mistake 1: Underestimating total costs. Many foreign buyers calculate only the purchase price and forget the 60% ABSD. On a S$2 million purchase, ABSD alone is S$1.2 million. Budget for the full 63% of purchase price (BSD + ABSD combined) to avoid a cash shortfall at payment time.
Mistake 2: Skipping the IPA step. Proceeding to make an offer without IPA wastes time and damages your credibility with sellers. Always secure IPA before negotiating.
Mistake 3: Missing the 14-day stamp duty deadline. Late ABSD payment triggers penalties. Coordinate with your lawyer to ensure e-stamping is completed on time.
Mistake 4: Overlooking MCST records and maintenance arrears. A property with high MCST arrears or pending special levies can drain your finances post-purchase. Always review MCST records during due diligence.
Mistake 5: Accepting a property valuation below purchase price without a cash buffer. If the bank's valuation comes in low, you must top up the shortfall in cash. Ensure you have liquid funds set aside for this scenario.
Timeline and Key Milestones
The entire process from offer to key collection typically spans 8–14 weeks:[1][2]
- Week 1: Secure IPA, identify property, negotiate terms
- Week 2: Receive signed OTP, pay option fee, engage lawyer
- Week 2–3: Legal due diligence and preliminary report
- Week 3: Exercise OTP, pay 5% deposit, trigger stamp duty clock
- Week 3–4: Pay BSD and ABSD to IRAS
- Week 4–5: Bank orders valuation and issues Letter of Offer
- Week 5–10: Mortgage document execution and coordination
- Week 10–14: Legal completion and key collection
Delays can occur if the bank's valuation is lower than expected, if MCST records reveal issues, or if completion coordination takes longer. Build in buffer time and maintain close communication with your lawyer and bank.
Frequently Asked Questions
Can I buy a property in Singapore if I'm not a citizen or permanent resident?
Yes, but with restrictions. You can freely purchase private condominiums and apartments in buildings with more than 6 storeys.[1][2] Landed properties require SLA approval and are rarely granted outside Sentosa Cove. You cannot buy HDB flats or Executive Condominiums under any circumstances.[4]
