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 financing, paying stamp duties like 60% ABSD, exercising an Option to Purchase, and completing legal transfer—all while navigating restrictions under the Residential Property Act. Foreigners can primarily buy condominiums, privatized ECs over 10 years old, or landed properties in Sentosa Cove with approval, making Homejourney's verified listings and tools essential for a safe transaction.[1][2]
This cluster article details the tactical process, linking back to our pillar guide on Singapore Property Buying Essentials. Homejourney prioritizes your safety with transparent data and customer-verified insights, helping foreigners avoid pitfalls in 2025's market.[1]
Eligibility: What Foreigners Can Buy in 2025
Foreigners without Permanent Residency (PR) status cannot buy new or resale HDB flats alone; they must be married to a Singapore Citizen with the spouse as an essential occupier.[1][2] Eligible options include private condominiums, apartments, strata-landed homes in approved developments, and fully privatized Executive Condominiums (ECs) after 10 years—which are treated as private properties.[1][2]
Landed properties like bungalows, semi-detached, or terrace houses require case-by-case approval from the Singapore Land Authority (SLA), often needing proof of exceptional economic contribution. Sentosa Cove landed homes are exempt from this restriction.[1] Use Homejourney's projects directory to filter verified foreigner-eligible properties in areas like District 10 or Sentosa.
Quick Eligibility Checklist for Foreigners
- Condo/Apartment: Fully eligible, no approval needed.[1]
- Privatized EC (>10 years): Eligible as private property.[2]
- Landed (non-Sentosa): Apply via SLA online portal.[1]
- HDB: Only with SC spouse; no single foreigner purchases.[1][4]
Insider tip: Check URA's Master Plan on their site for zoning—properties near MRT like Orchard or Tanjong Pagar command premiums of SGD 2,500-$4,000 psf in 2025.[1]
Step 1: Assess Finances and Additional Stamp Duties
Start by calculating costs: Buyer’s Stamp Duty (BSD) is progressive up to 6% on all purchases, plus 60% Additional Buyer’s Stamp Duty (ABSD) for foreigners buying their first residential property—no remission in 2025 post-cooling measures.[1] For a SGD 2 million condo, expect ~SGD 200,000 ABSD + BSD.
Foreigners face Loan-to-Value (LTV) limits of 50-70% depending on tenure, under Total Debt Servicing Ratio (TDSR) at 55%.[1] Use Homejourney's ABSD calculator and mortgage rates page for precise estimates. No CPF usage for foreigners, so plan 25-50% downpayment.[2]
Step 2: Find and Shortlist Properties
Search verified listings on Homejourney's property search tool, focusing on freehold condos in core districts. Engage a lawyer early for due diligence—verify title deeds via SLA portal and check for encumbrances.[3]
Timeline: 2-4 weeks. Pro tip: Prioritize properties with >99-year lease remaining; avoid short-lease pitfalls common for older expats.[1]
Step 3: Exercise Option to Purchase (OTP)
Negotiate price, then pay 1% Option Fee (SGD 10,000 on SGD 1M property) for 14-21 days exclusivity—non-refundable if you back out.[3] Within this period, pay additional 4-9% to exercise, totaling 5-10% deposit.[3]
Your lawyer drafts the OTP, ensuring clauses for ABSD payment within 14 days of exercise. Homejourney verifies seller details for trust.[1][3]
Step 4: Secure Financing (If Needed)
Apply for bank loans post-OTP; foreigners get 50% LTV max for >30-year loans.[1] Compare rates on Homejourney's financing guide. Approval takes 2-4 weeks; local banks like DBS prefer Employment Pass holders with stable income.[2]
Overseas mortgages possible but costlier—factor 1-2% legal fees.[3]
Step 5: Pay Stamp Duties and Finalize Sale
Pay BSD/ABSD within 14 days of OTP exercise via IRAS e-stamping. Lawyer conducts searches, prepares Sale & Purchase Agreement—sign within 14 days of exercise.[3]
Balance payment (90%) due at completion, 8-12 weeks later. Total timeline: 10-14 weeks.[3]
Common Mistakes Foreigners Make and How to Avoid Them
- Ignoring ABSD: Budget 60% upfront; use Homejourney calculators.[1]
- No SLA Approval for Landed: Apply pre-OTP via SLA portal—rejection voids deals.[1]
- Underestimating TDSR: Pre-assess with banks; income proof critical.[2]
- Skipping Lawyer Review: Always hire for OTP—costs SGD 2,000-5,000 but saves fortunes.[3]
Red flag: Sellers rushing OTP without full disclosures. Homejourney's transparency ensures verified info.[1]
Costs Breakdown Table
| Item | Estimate (SGD 2M Property) |
|---|---|
| Option Fee (1%) | 20,000 |
| Exercise Deposit (9%) | 180,000 |
| ABSD (60%) | 1,200,000 |
| BSD (~4% avg) | 80,000 |
| Legal Fees | 5,000 |
Disclaimer: Figures approximate; consult professionals. Not financial advice.[1][2]
Post-Purchase: Resale and Maintenance
Plan your exit strategy foreign owner with no ownership time restrictions—sell property foreigner anytime, but factor ABSD on resale if upgrading. Link to Exit Strategy Guide and maintenance services for upkeep.
FAQ: Step-by-Step Property Buying Process for Foreigners
Q: Can foreigners buy HDB flats?
A: No, unless married to a Singapore Citizen; spouse as essential occupier only.[1][4]
Q: What's the ABSD rate for foreigners in 2025?
A: 60% on first property, payable within 14 days.[1]
Q: How long does the process take?
A: 10-14 weeks from OTP to completion.[3]
Q: Do I need a lawyer?
A: Yes, mandatory for OTP and transfer; choose Homejourney-recommended for safety.
Q: Property resale foreign restrictions?
A: None—free to sell anytime. See property types guide.[1]
Ready to start? Search safe, verified properties on Homejourney today. For full details, read our pillar on Step-by-Step Property Buying Process for Foreigners. Homejourney ensures trust through verification and feedback-driven support.
