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

The step-by-step property buying process for foreigners in Singapore takes 8-12 weeks, from eligibility checks to legal completion, with key steps including securing an Option to Purchase (OTP), paying 60% ABSD, and financing up to 60% LTV.[1][2][3]

Homejourney prioritizes your safety by verifying listings and providing transparent tools, ensuring a trusted environment for foreign buyers. This cluster guide offers tactical advice linking to our pillar on Singapore Property Buying for Foreigners.

Why Foreigners Choose Singapore Property in 2026

Singapore's stable market attracts investors despite 60% ABSD, with condos yielding strong long-term returns. Foreigners compare it favorably to Taipei, where yields are lower but ABSD absent—yet Singapore offers superior transparency and security.[1][2]

For Taiwan investors, Singapore's property investment Taiwan SG edge lies in political stability and global connectivity. Use Homejourney's projects directory for verified data on high-demand areas like Orchard or Sentosa Cove.

Step 1: Confirm Eligibility and Property Types (1-2 Weeks)

Foreigners can freely buy private condos, apartments, privatized ECs (10+ years), and Sentosa Cove landed properties without approval.[1][2][3][4]

Landed properties elsewhere require SLA approval, needing 5+ years PR and economic proof via SLA portal.[3][4][6] HDB resale only via Non-Citizen Spouse Scheme with a Singaporean spouse as essential occupier.[2]

Actionable Tip: Start with Homejourney's property search filtered for foreigner-eligible listings. Reference our guide on Types of Properties Foreigners Can Buy.

Step 2: Budget Assessment and Pre-Approval (1 Week)

Calculate costs: purchase price + 6% BSD + 60% ABSD (first property) + S$2,000-S$3,500 legal fees + 2-3% other fees.[1][2][4]

Example: S$2M condo = S$1.2M ABSD + S$90K BSD = S$3.29M total. Foreigners max 60% LTV, subject to TDSR (60% debt servicing) and valid EP/S Pass.[1][2][4]

Get In-Principle Approval (IPA) from banks. Compare rates on Homejourney's bank rates page. See Financing Options for Foreign Buyers.

Step 3: Search, View, and Secure OTP (1-2 Weeks)

Use verified platforms like Homejourney to shortlist properties. View 5-10 units in target areas like District 10 (near Orchard MRT, 5-min walk to malls).

Negotiate price, pay 1% option fee for OTP (14-21 days validity). No CPF for foreigners—cash only.[1][4][5]

Insider Tip: Exercise OTP within 2 weeks; inspect for leaks, especially in older condos (common in 1980s builds).
Engage CEA-registered agent for viewings.

Step 4: Pay Stamp Duties (Within 14 Days of OTP)

Submit to IRAS: Buyer Stamp Duty (BSD up to 6%) and Additional Buyer's Stamp Duty (ABSD 60%). Use Homejourney's ABSD Calculator.[1][2][3]

Pay via cash or telegraphic transfer—no CPF. Rates current as of 2026 per IRAS.[2]

Step 5: Sign Sale & Purchase Agreement (2-3 Weeks Post-OTP)

Your conveyancing lawyer reviews terms, you pay 5-25% downpayment (cash).[1][4]

Timeline: S&P within 3 weeks of OTP receipt.[5] Lawyer handles due diligence on title, caveats.

Step 6: Financing, Valuation, and Legal Completion (4-8 Weeks)

Bank conducts valuation, disburses loan (up to 60% LTV) post-TDSR.[1][2][4] Pay remaining balance (20%).

Completion: 8-12 weeks total. Title transfers at SLA; collect keys after inspection.[4]

Post-Purchase: Budget for maintenance—link to Homejourney aircon services for new homes.

Financial Breakdown Table

Cost Item	Example (S$2M Condo)
ABSD (60%)	S$1,200,000
BSD (6%)	S$90,000
Legal Fees	S$2,500-S$3,500
Loan (60% LTV)	S$1,200,000

Disclaimer: Not financial advice; consult professionals. Rates per URA/IRAS 2026.[1][2]

Common Mistakes and Red Flags to Avoid

Ignoring ABSD: Many underestimate 60% hit—model cash flow first.[1]
No IPA: View properties without pre-approval leads to failed deals.
Skipping Inspections: Check for strata sinking fund shortfalls in older condos.
Red Flag: Sellers rushing OTP without full disclosure—walk away.

Compare Singapore vs Taipei property for Taiwan investors: Singapore wins on appreciation despite duties.

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

Q: Can foreigners buy landed property in Singapore?
A: Sentosa Cove yes, freely; others need SLA approval with 5+ years PR.[1][3][4][7]

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

Q: How long does the process take?
A: 8-12 weeks from OTP to keys.[1][3][4]

Q: Can foreigners use CPF?
A: No, cash only for downpayments and duties.[1][2]

Q: Is financing available post-ABSD payment?
A: Yes, up to 60% LTV after duties; check TDSR.[2][4]

Ready to start? Use Homejourney's property search for safe, verified listings. Explore our pillar guide on complete property buying and mortgage rates for next steps. Homejourney ensures transparency and trust every step.