Step-by-Step Property Buying Process for Foreigners in Singapore
The step-by-step property buying process for foreigners in Singapore typically spans 8-14 weeks from offer to key collection, involving eligibility checks, 60% ABSD payment, financing, and legal completion. Homejourney prioritizes your safety with verified property data and transparent tools to navigate these rules confidently.[1][2][3]
This cluster article details the precise sequence for foreign buyers, building on our pillar guide to Singapore Property Buying for Foreigners. With 2026 regulations unchanged—60% ABSD for all foreign individuals—focus on preparation to avoid costly pitfalls.[1][4]
Step 1: Verify Eligibility and Property Options
Foreigners cannot buy HDB flats or Executive Condominiums but can purchase private condominiums and apartments freely, or landed properties with Singapore Land Authority (SLA) approval—rare outside Sentosa Cove.[1][5]
Start by confirming your status via SLA's portal at SLA GoBusiness. Popular foreigner-friendly areas include Holland Village, Novena, and East Coast, offering strong rental yields.[1]
Actionable tip: Use Homejourney's Property Search to filter verified condominiums in these districts, ensuring listings match your eligibility.[3]
Insider Tip for Foreign Buyers
Locals know Novena's proximity to Tan Tock Seng Hospital and Novena MRT (5-minute walk from many condos) boosts rental demand from expats. Check URA Master Plan for future developments via Homejourney's Projects Directory .[1]
Step 2: Calculate Total Costs Including 60% ABSD
On a S$2 million condo, expect S$1.2 million in ABSD (60% rate, unchanged since 2023), plus Buyer's Stamp Duty (BSD) at progressive rates up to 6%, legal fees (S$3,000-S$5,000), and valuation (S$1,500-S$3,000).[1][2][4]
Total cost breakdown table:
| Item | Example (S$2M Property) |
|---|---|
| ABSD (60%) | S$1.2M |
| BSD | ~S$102,000 |
| Option Fee (1%) | S$20,000 |
| Legal/Other Fees | S$10,000+ |
ABSD and BSD are due within 14 days of exercising the Option to Purchase (OTP). Use Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney for precise calculations.[2]
Step 3: Secure In-Principle Approval (IPA) for Financing
Foreigners face Loan-to-Value (LTV) limits of 70% for bank loans, assessed under Total Debt Servicing Ratio (TDSR). Apply for IPA from banks like DBS or UOB with passport, work pass, payslips (3-6 months), IRAS Notices of Assessment, and overseas credit reports.[4]
IPA takes 3-5 days and lasts 30 days—essential before offers. Check current rates via Homejourney's Bank Rates or Mortgage Rates for safe comparisons.[3]
Related: Explore full options in our Financing Options for Foreign Buyers in Singapore | Homejourney .[4]
Step 4: Find and Shortlist Properties
Leverage Homejourney's Property Search for verified listings. View 5-10 units in target areas; negotiate via agents. See details on eligible types in Types of Properties Foreigners Can Buy in Singapore | Homejourney .[1][5]
Step 5: Obtain and Exercise the Option to Purchase (OTP)
Pay 1% option fee (S$20,000 on S$2M) for 14-21 days exclusivity. Engage a conveyancing lawyer within 24 hours for title searches, MCST checks, and encumbrance reviews.[4]
Exercise OTP by paying balance deposit (total 5%), triggering stamp duties. Lawyer handles IRAS e-stamping.[1][2]
Step 6: Finalize Mortgage and Valuation
Submit signed OTP to bank; valuation (1 week) must match/exceed price or top up cash. Sign Letter of Offer, reviewing lock-ins and penalties.[1][4]
Step 7: Complete Sale & Purchase Agreement and Pay Duties
Lawyer drafts agreement; pay remaining 90% + duties within 14 days. Monitor via Homejourney for updates.[3]
Step 8: Key Collection and Post-Purchase
8-14 weeks total; register with SLA. For maintenance, book via Aircon Services . Homejourney verifies for trust.[1]
Common Mistakes to Avoid
- Underestimating ABSD: Budget 60% upfront; use calculators.[2]
- No IPA: Sellers reject unfinanced offers.[4]
- Low Valuation: Have cash reserves.[1]
- Skipping Lawyer Checks: Red flags like arrears halt deals.[4]
Disclaimer: This is general guidance; consult professionals for advice. Rates current as of 2026 per IRAS/SLA.[1][5]
FAQ
Q: What's the timeline for the step-by-step property buying process for foreigners?
A: 8-14 weeks from OTP to keys, per standard conveyancing.[1][3]
Q: ABSD rate for foreigners in 2026?
A: 60% on purchase price/valuation, higher of the two.[1][4]
Q: Can foreigners buy landed property?
A: Yes, with SLA approval; condos are unrestricted.[5]
Q: What documents for financing?
A: Passport, payslips, tax returns, credit reports.[4]
Q: Is it worth the 60% ABSD?
A: For long-term in high-demand areas; analyze via Homejourney tools.[1]
Ready to start? Search verified properties on Homejourney's Property Search and link back to our pillar on Singapore Property Buying Essentials. Homejourney ensures safe, transparent journeys—your trusted partner.
