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 8-14 weeks from offer to key collection, involving eligibility checks, 60% ABSD payment, financing approval, and legal completion. Homejourney prioritizes your safety by verifying properties and offering transparent tools like property search to build trust in every decision.[1][2]

This cluster focuses on the tactical steps for foreigners, linking back to our pillar guide on types of properties foreigners can buy. Whether you're a Chinese national following the Chinese buy condo step or a PRC investor in the PRC condo purchase, these actions ensure compliance with 2026 rules from SLA and IRAS.[3][4]

Why Foreigners Choose Singapore Property in 2026

Singapore's stable market attracts foreigners despite restrictions, with private condos in areas like River Valley or East Coast seeing steady demand. The 60% ABSD, unchanged since 2023, filters serious buyers while prioritizing citizens.[1][3] Homejourney's verified listings help you shortlist safely, avoiding pitfalls in a market where foreign purchases are just 2.9% of CCR transactions.[6]

Current context: Expect psf prices around S$2,500-S$4,000 in prime districts. Preparation is key—start with eligibility to avoid wasted viewings.[1]

Step 1: Verify Eligibility and Property Options

Foreigners can buy private condos and apartments freely under the Residential Property Act, no SLA approval needed for non-landed units over six stories. Landed properties require SLA approval via their portal, rarely granted except Sentosa Cove. HDB flats and ECs are off-limits.[4][5]

Check your status: Valid passport, Employment Pass, or S Pass required.
Review options: Focus on condos in Novena (near MRT Exit A, 5-min walk to medical hub) or Holland Village.
Use Homejourney's projects directory for verified developments.[1]

Insider tip: PRC buyers on the China national condo guide often target freehold condos like those in District 10 for long-term value.[2]

Step 2: Calculate Total Costs Including 60% ABSD

ABSD is 60% of purchase price or market value (higher), payable within 14 days of OTP exercise—e.g., S$1.2M on S$2M condo. Add BSD (up to 6%), legal fees (S$3,000-S$5,000), and agent commission (1-2%).[1][3]

Cost Breakdown Table (S$2M Condo Example):

Item	Amount
Purchase Price	S$2,000,000
ABSD (60%)	S$1,200,000
BSD	S$104,600
Total Cash Outlay (excl. loan)	S$1,354,600+ (25% deposit)

Try Homejourney's ABSD calculator for precision. Disclaimer: Rates per IRAS 2026; consult professionals for advice.[3]

Step 3: Secure In-Principle Approval (IPA) for Financing

Before offers, get IPA from 1-2 banks—valid 30 days. LTV max 75% for foreigners, subject to TDSR (debt not exceeding 55% income).[9] Submit: passport, work pass, 3-6 months payslips, NOA, overseas credit report.[1][3]

Link to financing options and bank rates on Homejourney for current deals. Approval in 3-5 days; crucial for seller confidence.[2]

Step 4: Shortlist, View, and Secure Option to Purchase (OTP)

Search via Homejourney's property search. Negotiate price, pay 1% option fee for 14-21 days exclusivity. Engage lawyer for title checks.[1]

Red flag: Unverified sellers—Homejourney verifies all.
Tip: View during peak hours (weekends, 2-5pm) for vibe check.

Step 5: Exercise OTP, Pay Stamp Duties, and Due Diligence

Pay balance deposit (to 5%), lawyer handles e-stamping. Pay ABSD/BSD within 14 days. Conduct caveats search, encumbrance checks.[3]

Timeline: 1-2 weeks. Coordinate with lawyer experienced in foreign transactions.

Step 6: Finalize Mortgage and Valuation

Bank valuations (1 week); if below price, top up cash. Sign Letter of Offer, execute mortgage docs. See foreign buyer financing.[1][7]

Step 7: Completion and Key Collection

8-12 weeks post-OTP: Pay balance, transfer title via lawyer. Total 8-14 weeks. Post-purchase, consider aircon services for maintenance.[1]

Common Mistakes to Avoid

Avoid: Skipping IPA (OTP forfeited), underestimating ABSD, ignoring valuations (cash shortfalls). Real example: Foreigner in 2025 topped up S$200K post-valuation dip. Always use verified platforms like Homejourney.[3][6]