Step-by-Step Property Buying Process for Foreigners in Singapore
The step-by-step property buying process for foreigners in Singapore takes 8-12 weeks, from eligibility checks to key collection, with key steps including securing an Option to Purchase (OTP), paying 60% ABSD, and financing up to 60% LTV.[1][2][3]
Homejourney verifies every detail to ensure a safe, transparent journey, prioritizing your security in this regulated market. This cluster article dives into actionable steps, linking back to our comprehensive pillar guide on property buying. Whether you're a first-time foreign buyer or investor, follow these verified steps for confident decisions.[1]
Why Foreigners Choose Singapore Property in 2026
Singapore's stable economy and world-class infrastructure attract foreign buyers, especially compared to volatile markets like Hong Kong. While Singapore vs Hong Kong property shows SG's lower volatility and higher rental yields, Chinese buyers often prefer SG's transparency over HK's high BSD.[1][2] See our guide on Singapore vs Hong Kong property investment for Chinese buyers.
Foreigners face ABSD vs BSD HK: Singapore's 60% ABSD on first properties dwarfs HK's progressive BSD, yet SG offers better long-term appreciation. Homejourney's tools help calculate these via our ABSD Stamp Duty Calculator.[1][3]
Step 1: Confirm Eligibility and Property Types (1-2 Weeks)
Start by verifying what you can buy without approval: private condos, apartments, privatized ECs (10+ years old), and Sentosa Cove landed properties.[1][2][3] HDB resale is restricted to Non-Citizen Spouse Scheme (married to citizen, valid pass required); new HDBs are off-limits.[2]
Landed properties outside Sentosa need SLA approval (5+ years PR, economic contribution proof).[3][5][6] Use Homejourney's projects directory and property search for verified eligible listings in areas like Orchard or Tanjong Pagar.[1]
Insider tip: Check URA zoning via their portal; avoid pitfalls like buying non-qualifying shophouses disguised as residential.[3]
Actionable Checklist
- Review URA/SLA guidelines for your pass (EP/S Pass preferred).[3]
- Confirm property type on Homejourney search.[1]
- If landed, prepare SLA application (case-by-case, 4-6 weeks).[5][6]
Step 2: Budget and Secure Pre-Approval (1 Week)
Calculate costs: purchase price + 3-6% BSD + 60% ABSD (first property, 2026 rate) + S$2,000-3,500 legal fees + valuation.[1][2][3] For a S$2M condo, expect ~S$1.3M ABSD alone.
Foreigners max 60% LTV (TDSR/MSR apply), no CPF use. Get In-Principle Approval (IPA) from banks; compare via Homejourney's bank rates or mortgage rates.[1][2] Explore options in our Financing Options for Foreign Buyers.[2]
Example: S$1.5M condo: ~S$900K ABSD, 60% loan = S$900K financing, 40% cash downpayment.[3]
Step 3: Search, View, and Secure OTP (1-2 Weeks)
Use Homejourney's property search for condos in prime spots like District 9 (Orchard, ~S$2,800 psf).[1] View 5-10 units; negotiate price.
Pay 1% option fee for 14-21 day OTP (exclusive buying rights).[1][3][4] Tip: Include conditions like satisfactory valuation in OTP.[3]
Steps 4-8: Exercise OTP, SPA, Financing, Completion (4-8 Weeks)
- Exercise OTP (within period): Pay 4% more (total 5% down).[1][4]
- Sign Sale & Purchase Agreement (SPA, 2-3 weeks post-OTP): Lawyer reviews; pay stamp duties within 14 days.[1][2][4]
- Financing & Valuation (4-6 weeks): Bank approves post-TDSR; disburses up to 60% LTV.[2][3]
- Completion (8-12 weeks total): Pay remaining 25-35% cash; register at SLA, collect keys.[1][3]
Engage CEA-registered agents and conveyancing lawyers early. Post-purchase, maintain with aircon services.[1]
Financial Breakdown Table
| Cost Item | Example (S$2M Condo) |
|---|---|
| Purchase Price | S$2,000,000 |
| BSD (6%) | S$100,000 |
| ABSD (60%) | S$1,200,000 |
| Legal/Valuation | S$3,000 |
| Total Cash Needed | ~S$1,450,000 (excl. loan) |
Sources: IRAS/URA 2026 rates.[1][3] Use Homejourney calculator for personalization.
Common Mistakes and Red Flags
- Mistake: Underestimating ABSD—many forfeit OTPs.[1] Solution: Budget 65%+ extra.
- Red flag: Sellers pressuring quick OTP without lawyer review.[3]
- Pro tip: Verify freehold/99-year lease via Homejourney projects.[1]
Disclaimer: This is general guidance; consult professionals for advice. Homejourney verifies data but not financial advice.[1][2]
FAQ: Step-by-Step Property Buying Process for Foreigners
Q: Can foreigners buy HDB flats?
A: Only resale via Non-Citizen Spouse Scheme if married to a citizen.[1][2]
Q: What's the 2026 ABSD rate for foreigners?
A: 60% on first residential property, regardless of value.[1][3]
Q: Max LTV for foreigners?
A: 60%, subject to TDSR; valid work pass required.[2][3]
Q: Timeline for landed property approval?
A: 4-6 weeks via SLA; Sentosa Cove exempt.[3][5][6]
Q: Can I use CPF?
A: No, foreigners cannot use CPF for purchases.[2]
Next Steps with Homejourney
Start your safe journey: Search eligible properties on Homejourney property search, calculate ABSD, and compare financing. Homejourney prioritizes your trust with verified data and feedback-driven tools. Link back to our pillar for full details.
