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 ABSD at 60%, and completing legal transfers—all while navigating restrictions under the Residential Property Act. Foreigners can freely buy condominiums and apartments but need Land Dealings Approval Unit (LDAU) permission for landed properties outside Sentosa Cove[1][2][3]. Homejourney prioritizes your safety by verifying listings on our property search platform, ensuring transparent transactions in a trusted environment.
This cluster article breaks down the tactical process, linking back to our pillar guide on Singapore property buying. With 2025 market stability, foreigners face high ABSD but benefit from Singapore's political stability and investment appeal[1]. Use Homejourney for verified data and personalized advice.
Step 1: Confirm Your Eligibility as a Foreign Buyer
Start by verifying what properties you can buy. Foreigners cannot purchase new HDB flats but may buy resale HDB if married to a Singapore Citizen under the Non-Citizen Spouse Scheme, requiring a valid Work Pass or Long-Term Visit Pass[4][5]. For private properties, condominiums, apartments, strata-landed in approved developments, and Sentosa Cove landed homes are unrestricted[1][2].
Landed properties like bungalows or terrace houses elsewhere require LDAU approval via the Singapore Land Authority (SLA) website, proving exceptional economic contribution—applications take about one month[1][3]. Insider tip: PRs with 5+ years status have better chances; check URA's planning portal first for zoning.
- Action: Review property types on Homejourney's projects directory or read our guide Types of Properties Foreigners Can Buy in Singapore.
- Use HDB's eligibility checker if applicable for resale flats.
Step 2: Calculate Costs Including ABSD and BSD
Budget for Buyer's Stamp Duty (BSD) on all properties and Additional Buyer's Stamp Duty (ABSD) at 60% for foreigners' first residential purchase (2025 rates post-2023 cooling measures)[1]. For a S$2 million condo, ABSD alone is S$1.2 million. No CPF usage for foreigners—full cash or loan payments required.
Breakdown table:
| Cost Type | Rate (2025) | Example (S$1.5M Property) |
|---|---|---|
| BSD | 1-6% tiered | S$71,750 |
| ABSD (Foreigners) | 60% | S$900,000 |
| Legal Fees | ~1% | S$15,000 |
| Agent Commission | 1-2% | S$15,000-S$30,000 |
Tip: Use Homejourney's ABSD Stamp Duty Calculator for precise estimates. Factor in currency conversion if from China—monitor CNY SGD exchange rates via our CNY to SGD Exchange Guide.
Step 3: Secure Financing Options
Foreigners face Loan-to-Value (LTV) limits of 70% for loans under Total Debt Servicing Ratio (TDSR) of 55%, assessed by Monetary Authority of Singapore (MAS) rules[1]. Banks verify overseas income, complicating approvals—expect higher interest rates (3-4% in 2025). Explore options in our guide Financing Options for Foreign Buyers.
- Compare rates on Homejourney's bank rates page.
- Prepare documents: passport, work pass, income proofs (last 6 months), overseas credit report.
- Timeline: 2-4 weeks for in-principle approval (IPA).
Disclaimer: This is general guidance; consult licensed financial advisors for personalized advice.
Step 4: Find and Shortlist Properties
Search verified listings on Homejourney's property search—filter by foreigner-eligible types like condos in Orchard or Sentosa. View 5-10 units; insider tip: Visit during off-peak (weekdays 2-5pm) to avoid crowds at popular sites like The Sail @ Marina Bay.
Evaluate via decision framework:
- Location: Proximity to MRT (e.g., <10min walk from exit).
- Tenure: 99-year leasehold common for value.
- Maintenance: Factor post-purchase services like aircon services.
Step 5: Make an Offer and Sign Option to Purchase
Negotiate price (5-10% below asking common in 2025). Pay option fee (S$1,000 cash or 1% cheque) for 14-21 days exclusivity. Exercise option with 25% deposit within timeframe—lawyer handles caveats via INLAND REVENUE AUTHORITY OF SINGAPORE (IRAS).
- Engage lawyer (foreigner-friendly firms experienced with SLA).
- Conduct title checks for encumbrances.
- Pay stamp duties within 14 days post-OTP.
Step 6: Complete Legal Completion and Possession
Timeline: 8-12 weeks from OTP. Final 75% payment via banker's guarantee. Receive keys post-completion—register with SLA if landed. Total process: 3-6 months.
Common pitfalls: Missing ABSD payment (penalties up to 50% extra); unverified sellers (Homejourney flags these). For exit planning, see Exit Strategy Guide.
Common Mistakes to Avoid
- Ignoring TDSR: Overborrowing leads to rejection.
- Skipping lawyer early: Delays completion.
- Overlooking lease decay: Prefer >70 years remaining.
- Currency risks: Lock CNY SGD exchange for RMB property payments.
Homejourney's verification ensures safe deals—our user feedback drives platform improvements.
FAQ: Step-by-Step Property Buying Process for Foreigners
Q: Can foreigners buy HDB flats?
A: Only resale if married to a Singapore Citizen with valid pass; no new BTO/SBF[4][5].
Q: What's the ABSD rate for foreigners in 2025?
A: 60% on first property, regardless of value[1]. Use our calculator.
Q: How long does LDAU approval take?
A: About 1 month; required for non-Sentosa landed[3].
Q: Can I use CPF for purchases?
A: No, foreigners pay fully in cash or loans.
Q: Best financing for Chinese buyers?
A: Monitor currency conversion China rates; check bank rates on Homejourney.
Ready to start? Search trusted properties on Homejourney's property search and link back to our pillar guide for the full Singapore buying overview. Your safe property journey begins here—prioritizing trust and transparency.
