Step-by-Step Property Buying Process for Foreigners in Singapore
The step-by-step property buying process for foreigners in Singapore involves checking eligibility, securing approvals where needed, calculating stamp duties like 60% ABSD, engaging professionals, and completing legal transfers—all while prioritizing safety and transparency. Homejourney simplifies this for foreign buyers, including Japanese buyers in Singapore, by verifying listings and providing trusted tools to ensure confident decisions in a secure environment[1][2].
This cluster article focuses on the tactical process, linking back to our pillar guide on Japan citizen property ownership. As a platform committed to user safety, Homejourney verifies every detail so you avoid pitfalls common to Japanese investor guides entering the market.
Why Foreigners Choose Singapore Property in 2025
Singapore's political stability and economic strength attract foreigners, but strict rules under the Residential Property Act (RPA) limit options. Foreigners can freely buy condominiums, privatized Executive Condominiums (ECs after 10 years), and Sentosa Cove landed properties, but need Land Dealings Approval Unit (LDAU) permission for other landed homes[1][3].
In 2025, high ABSD rates (60% for foreigners) make cost planning essential, yet demand persists in areas like Orchard or Marina Bay. Homejourney's property search helps Japan Singapore property seekers filter verified options safely.
Eligibility Check: First Critical Step
Start by confirming what you can buy. Foreigners cannot purchase new HDB flats or resale HDB without a Singaporean spouse under the Non-Citizen Spouse Scheme[4]. Focus on private properties: condos (no approval needed), strata-landed in approved developments, or Sentosa Cove[1].
- Review RPA restrictions via URA website.
- For landed (e.g., bungalows outside Sentosa), prepare LDAU application showing economic contributions like high-income employment[3].
- Japanese citizens, see our specialized Japanese Citizens Buying Property in Singapore guide.
Insider tip: Approval takes 1 month; apply early via SLA portal. Homejourney verifies agent credentials for trusted advice.
Detailed Step-by-Step Process
Follow this step-by-step property buying process for foreigners to navigate Singapore's market securely. Expect 8-12 weeks total, longer for approvals.
Step 1: Research and Shortlist (Weeks 1-2)
Identify properties via Homejourney's projects directory and property search. Prioritize condos in foreigner-friendly areas like District 10 (Bukit Timah, ~S$2,500 psf) or Sentosa Cove (landed ~S$3,000 psf)[1].
- Check leasehold (99 years common) vs freehold.
- Use Types of Properties Foreigners Can Buy for details.
- Verify via CEA-registered agents on Homejourney.
Step 2: Calculate Costs and Duties (Week 2)
Budget for Buyer's Stamp Duty (BSD up to 6%) + 60% Additional Buyer's Stamp Duty (ABSD) on purchase price. Example: S$2M condo = ~S$1.26M ABSD + S$120K BSD. Use Homejourney's ABSD Stamp Duty Calculator[1].
Other costs: 1-2% agent fees, legal fees ~S$3,000-5,000. Foreigners face Loan-to-Value (LTV) limits of 70% max, per MAS TDSR rules—no CPF usage[2]. Check bank rates for financing.
| Cost Item | Estimate for S$2M Property |
|---|---|
| ABSD (Foreigner) | S$1,200,000 (60%) |
| BSD | S$120,000 (6% tier) |
| Legal/Agent Fees | S$50,000 |
Step 3: Engage Professionals and Option to Purchase (Weeks 3-4)
Hire a CEA lawyer for Option to Purchase (OTP, S$1,000-10,000 refundable). Sign within 14-21 days. For landed, submit LDAU first[3]. Homejourney connects you to verified lawyers prioritizing your safety.
Tip: Negotiate OTP with 4-week exercise period for due diligence.
Step 4: Financing and Due Diligence (Weeks 4-6)
Secure bank loan (see Financing Options for Foreign Buyers). Conduct title checks, defect inspections. Foreigners: Prove income via work pass[2].
Step 5: Exercise OTP and Pay Deposits (Week 7)
Pay 5% option exercise fee + 5% deposits. Lawyer prepares Sale & Purchase Agreement.
Step 6: Completion and Key Collection (Weeks 8-12)
Pay balance via lawyer's account. Transfer title at SLA. Plan maintenance via aircon services.
Common Mistakes to Avoid
Avoid underestimating ABSD—many Japanese investors overlook it, inflating costs 60%. Don't skip LDAU for non-Sentosa landed; rejections common without economic proof[1][3]. Red flag: Unverified agents—stick to Homejourney's trusted network.
Real example: A foreigner bought a condo without TDSR check, loan rejected post-OTP, losing deposit. Always pre-approve financing.
Financial Considerations for Foreigners
No CPF, so full cash or bank loans (interest ~3-4% 2025). LTV 70%, TDSR caps debt at 55% income. Post-purchase, budget S$5,000/year maintenance[2].
FAQ: Step-by-Step Property Buying Process for Foreigners
Q1: Can Japanese buyers purchase landed property in Singapore?
A: Yes, Sentosa Cove freely; others need LDAU approval showing economic contribution. See our Japanese guide[1].
Q2: What is the ABSD rate for foreigners in 2025?
A: 60% on residential properties. Use Homejourney's calculator for precision[1].
Q3: How long does LDAU approval take?
A: About 1 month; apply online via SLA with PR status (5+ years preferred) and contribution proof[3].
Q4: Can foreigners buy HDB flats?
A: Only resale if married to Singaporean under Non-Citizen Spouse Scheme[4].
Q5: What documents are needed?
A: Passport, work pass, income proof, LDAU approval if applicable. Lawyer handles rest.
Disclaimer: This is general guidance; consult professionals for personalized advice. Homejourney verifies info but is not legal/financial advice.
Ready to start? Use Homejourney's property search for safe, verified listings. Link back to our pillar on comprehensive Singapore property buying for deeper insights.
