Step-by-Step Property Buying Process for Foreigners | Homejourney
The step-by-step property buying process for foreigners in Singapore involves checking eligibility, understanding stamp duties like ABSD and BSD, securing financing, and completing legal transfers—all while navigating restrictions on property types. Homejourney prioritizes your safety by verifying listings and providing transparent guidance, helping foreigners make confident decisions in a trusted environment.
This cluster article dives into the tactical steps for foreigners, linking back to our comprehensive pillar guide on property buying. With 2025 market cooling measures in place, including a 60% ABSD rate for most foreigners, proper planning is essential.[1][2]
Step 1: Confirm Your Eligibility as a Foreign Buyer
Foreigners cannot buy HDB flats or new executive condominiums (ECs); focus on private condos, apartments, strata-landed homes in approved developments, or Sentosa Cove properties.[1][5] Landed properties like bungalows, semi-detached, or terrace houses require special approval from the Singapore Land Authority (SLA) on a case-by-case basis, often needing proof of exceptional economic contribution.[1][2]
PRs have slightly more options, like resale HDB with a citizen spouse, but non-PR foreigners are limited to private properties or fully privatized ECs over 10 years old.[2] Insider tip: Start with Homejourney's property search tool to filter foreigner-eligible listings in areas like Orchard or Sentosa, verified for accuracy.
- Private condos/apartments: No approval needed.
- Landed (non-Sentosa): Apply via SLA online portal.
- ECs: Only after 10-year privatization.
Check our related guide: Types of Properties Foreigners Can Buy in Singapore.
Step 2: Understand Stamp Duties – ABSD and BSD for Foreigners
All buyers pay Buyer’s Stamp Duty (BSD), a progressive rate from 1% to 6% on the purchase price, calculated at completion. Foreigners face Additional Buyer’s Stamp Duty (ABSD) at 60% for their first residential property as of 2025, regardless of value—up from prior rates due to cooling measures.[1]
For example, on a S$2 million condo, BSD is about S$92,000, plus S$1.2 million ABSD, totaling over S$1.3 million in duties. Taiwanese buyers face the standard Taiwanese ABSD rate of 60%, with no special exemptions—often called ABSD Taiwan in queries. There's no separate "Taiwan stamp duty Singapore" or "ROC buyer stamp duty"; it's the flat 60% ABSD.[1] Use Homejourney's ABSD Stamp Duty Calculator for precise estimates.
| Buyer Type | ABSD Rate (First Property, 2025) |
|---|---|
| Singapore Citizen (First) | 0% |
| PR (First) | 5% |
| Foreigner (e.g., Taiwanese) | 60% |
Exemptions are rare; EFTA citizens (Switzerland, Norway, Iceland) may qualify for lower rates under FTAs—see EFTA Singapore FTA Property Benefits. Always verify with IRAS.
Step 3: Secure Financing and Assess Affordability
Foreigners can get bank loans up to 60% Loan-to-Value (LTV) limit, subject to Total Debt Servicing Ratio (TDSR) of 55% of gross income. No HDB loans or CPF usage apply.[5] Compare rates via Homejourney's mortgage rates page for the best deals from DBS, OCBC, or UOB.
Hidden costs: Legal fees (S$2,000–5,000), valuation (S$500–1,500), and agent commissions (1–2%). Budget 5–10% of purchase price beyond downpayment. Detailed options in Financing Options for Foreign Buyers.
Step 4: Find and View Properties Safely
Use verified platforms like Homejourney's projects directory to explore condos in hotspots like District 10 (Bukit Timah, median S$2.5M). Schedule viewings with licensed agents; red flag unverified sellers. Insider tip: Visit during peak hours via MRT (e.g., Stevens MRT Exit A, 5-min walk to freehold condos) to assess neighborhood vibe.
- Shortlist 5–10 properties matching budget post-ABSD.
- Engage a lawyer early for due diligence.
- Conduct title checks for caveats or encumbrances.
Step 5: Make an Offer and Sign Option to Purchase
Submit a binding Option to Purchase (OTP) with 1–5% deposit (S$1,000–10,000 typical). 14–21 days to exercise; negotiate price based on recent transacted prices from URA data. Homejourney verifies transaction history for transparency.
Common mistake: Skipping lawyer review—always do so to avoid disputes.
Step 6: Complete Legal Conveyancing and Pay Stamp Duties
Your lawyer handles SLA approval if needed (4–8 weeks for landed), pays duties within 14 days of OTP exercise, and transfers title at SLA within 8 weeks. Total timeline: 8–12 weeks from OTP. Post-purchase, consider aircon services for maintenance.
Timeline breakdown:
- OTP exercise: Day 1–14
- SLA approval (if applicable): 4–8 weeks
- Completion: 8 weeks from exercise
Common Mistakes Foreigners Make and How to Avoid Them
Avoid underestimating ABSD—many Taiwanese buyers overlook the 60% hit, inflating costs. Don't buy without TDSR assessment; banks reject post-OTP. Red flags: Pressure to pay cash deposits or unverified titles. Homejourney's verification processes protect you.[1]
Real example: A foreigner in 2024 paid S$1.8M ABSD on a S$3M condo, unaware of rates—plan with our calculator.
Financial Breakdown for a S$2M Condo (Foreigner, 2025)
| Item | Cost |
|---|---|
| Purchase Price | S$2,000,000 |
| BSD | S$92,000 |
| ABSD (60%) | S$1,200,000 |
| Legal/Other Fees | S$20,000 |
| Total Upfront | S$1,312,000+ (65%+) |
*Assumes 35% downpayment + duties. Disclaimers: Not financial advice; consult professionals. Rates per IRAS/URA 2025.[1]
FAQ: Step-by-Step Property Buying Process for Foreigners
Q: What is the Taiwanese ABSD rate in Singapore?
60% on the first residential purchase, same as other foreigners—no special Taiwan stamp duty.[1]
Q: Can foreigners buy landed property?
Yes, but only Sentosa Cove freely; others need SLA approval.[1][5]
Q: How long does the process take?
8–12 weeks from OTP, longer for approvals.
Q: Do foreigners pay higher stamp duties?
Yes, 60% ABSD plus standard BSD.
Q: Where to start searching safely?
Homejourney's verified property search.
