Step-by-Step Property Buying Process for Foreigners | Homejourney

Step-by-Step Property Buying Process for Foreigners in Singapore

The step-by-step property buying process for foreigners in Singapore spans 8-12 weeks, starting with eligibility checks, securing an Option to Purchase (OTP), paying stamp duties like 60% ABSD, and completing legal transfer via conveyancing lawyers.[1][2][3][4]

Homejourney prioritizes your safety by verifying properties and sellers, creating a trusted environment for transparent transactions. This cluster focuses on actionable steps for foreigners, linking back to our comprehensive pillar guide on Singapore property buying. Whether you're an American top buyer in Singapore or part of the US buyers dominate trend, follow these steps for compliance with URA, SLA, and IRAS rules.[1][2]

Step 1: Confirm Eligibility and Property Types

Foreigners cannot buy new HDB flats or most landed properties without approval, but can freely purchase private condominiums, apartments, privatized ECs (after 10 years), and Sentosa Cove landed homes.[2][3][4]

For HDB resale, only via the Non-Citizen Spouse Scheme if married to a Singapore Citizen, with the spouse as essential occupier and valid Work/Visit Pass required.[1][2][5] Check URA guidelines via Homejourney's projects directory for verified eligible properties.

Private condos/apartments: No approval needed.
Landed (non-Sentosa): Apply for SLA's LDAU approval, showing exceptional economic contribution (e.g., PR for 5+ years).[3][4][7]
Insider tip: Americans often target Orchard Road condos like The Atrium @ Orchard (avg S$2,500 psf), ideal for why Americans buy Singapore properties—stability and yields.[1]

Step 2: Assess Budget and Secure Financing

Calculate total costs: purchase price + BSD (up to 6%) + 60% ABSD for first residential property + legal fees (S$2,000-S$3,500).[3][4] Foreigners get loans up to 50-70% LTV, subject to TDSR and valid EP/S Pass.[2][4]

Get In-Principle Approval (IPA) from banks early. Explore options in our Financing Options for Foreign Buyers guide and check rates at Homejourney bank rates.

Cost Item	Estimate (S$1M Property)
ABSD (60%)	S$600,000
BSD	S$30,000-S$50,000
Legal Fees	S$2,500

Disclaimer: This is not financial advice; consult professionals. Use Homejourney's ABSD calculator for precision.[3]

Step 3: Search and View Properties

Use Homejourney's property search for verified listings in high-demand areas like District 9 (Orchard) or 15 (East Coast), where USA Singapore property trend shows strong interest from US buyers.[1]

Engage a CEA-registered agent. View 5-10 units; check for leaks, orientation (insider tip: North-South facing avoids afternoon sun in tropical climate).

Step 4: Make Offer and Secure OTP

Negotiate price, pay 1% option fee for OTP (valid 14 days, extendable).[4][6] Exercise OTP with 4% additional deposit (total 5%).

OTP is legally binding; include conditions like subject to financing. Homejourney verifies seller details for safety.[1][3]

Step 5: Legal Due Diligence and Stamp Duties

Engage conveyancing lawyer for title checks, caveats search. Pay BSD/ABSD within 14 days of OTP exercise via IRAS.[1][4]

Timeline: 2-4 weeks. Lawyer handles Sales & Purchase Agreement (S&P).

Step 6: Financing and Completion

Bank disburses loan (up to 75% max, but foreigners often 50-70%). Pay remaining 20-25% downpayment.[4]

Completion: 8-12 weeks post-OTP. Register title at SLA, collect keys. Total process: 8-14 weeks.[2][3][4]

Common Mistakes to Avoid

Skipping eligibility check: Results in forfeited deposits; verify via URA first.[2]
Underestimating ABSD: 60% hits hard—budget accurately.[1][3]
No IPA pre-OTP: Financing falls through; secure early.[4]
Ignoring maintenance: Plan post-purchase with Homejourney aircon services.[1]

For US buyers dominate market insights, see Why Americans Are Biggest Foreign Property Buyers.[1]

Financial Considerations and Tips

No CPF for foreigners. Hidden costs: valuation (S$500), agent fees (1-2% if paid). Yields 3-4% in prime areas make it viable despite ABSD for long-term holds.[3]

Actionable framework: If investment yield >5% post-ABSD, proceed. Analyze via Homejourney projects.

FAQ: Step-by-Step Property Buying Process for Foreigners

Q: Can foreigners buy landed property?
A: Sentosa Cove yes; others need SLA approval.[1][3][7]

Q: ABSD rate for foreigners in 2026?
A: 60% on first property.[1][2][3]

Q: Loan limits for foreigners?
A: 50-70% LTV; see Homejourney mortgage rates.[2][4]

Q: Total timeline?
A: 8-14 weeks from OTP.[3][4]

Q: Documents needed?
A: Passport, EP/Visit Pass, IPA letter, proof of funds.[2][4]

Ready to start? Search verified properties on Homejourney today. Homejourney ensures safety through verification and transparency—your trusted partner in the step-by-step property buying process for foreigners. Explore our pillar guide for more.