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 takes 8–14 weeks from offer to key collection, involving eligibility checks, 60% ABSD payment, financing approval, and legal completion with the Singapore Land Authority (SLA).[1][2][3] Foreign buyers, including Australian buyers in Singapore and Aussie investors, must navigate strict rules under the Residential Property Act while prioritizing safety—Homejourney verifies listings and provides transparent tools to ensure trusted decisions.[1][2]

This cluster article details the precise process, building on our pillar guide to Singapore property ownership. It offers tactical steps for Australia citizen property buyers, with insider tips from Homejourney's experience helping foreigners secure condos in prime areas like Orchard and East Coast.[1][3]

Why Foreigners Choose Singapore Property in 2026

Singapore's stable market attracts Aussie investor guides seeking high yields and capital growth, despite 60% ABSD unchanged since 2023.[1][2][4] Private condos in foreigner-friendly districts like Novena or River Valley remain accessible without SLA approval for non-landed units over six stories.[1][3][4] Homejourney's property search filters verified options, helping you avoid ineligible HDB flats or unapproved landed homes.[1]

Current context: Foreign purchases of non-landed CCR homes hit low volumes in 2025 (2.9% of transactions), signaling selectivity for serious buyers.[8] Start with Homejourney for market insights via our projects directory.[1]

Step 1: Verify Eligibility and Property Types

Confirm what you can buy under SLA rules before viewing properties.[1][3][6] Foreigners freely purchase private condominiums, apartments, and strata-titled units; fully privatized Executive Condominiums (ECs) over 10 years old qualify too.[1][2][3]

Freely allowed: Condos in Holland Village (e.g., 5-min walk from Holland Village MRT Exit A), Novena, East Coast.[1]
Limited: Sentosa Cove landed properties without approval; mainland landed needs rare SLA nod via SLA GoBusiness portal.[1][4][6]
Prohibited: HDB flats, new ECs.[1][4]

Insider tip: Use Homejourney's filters to shortlist—e.g., a 2-bed condo in River Valley starts at S$2.5M post-ABSD.[1] Link to types of properties foreigners can buy for details.[2]

Step 2: Calculate Total Costs with 60% ABSD

Budget shock hits here: 60% Additional Buyer's Stamp Duty (ABSD) on purchase price/valuation for foreigners' first property, plus tiered Buyer's Stamp Duty (BSD) up to 6%.[1][2][3] Example: S$2M condo = S$1.2M ABSD + ~S$80K BSD = S$1.28M duties alone.[1]

Other costs: 1% option fee, legal fees (S$2K–5K), valuation (S$500–2K).[1][5] Use Homejourney's ABSD calculator for precision; pay duties within 14 days of OTP exercise.[1][2]

Cost Item	Estimate (S$2M Property)
ABSD (60%)	1,200,000
BSD	~80,000
Option Fee (1%)	20,000

Disclaimer: Rates per IRAS 2026; consult professionals. No CPF for foreigners.[1][2]

Step 3: Secure In-Principle Approval (IPA)

Apply to 1–2 banks pre-offer: submit income docs, passport, employment proof. IPAs arrive in 3–5 days for salaried expats.[1][3] Loan-to-Value (LTV) caps at 75% for foreigners; TDSR limits debt at 55% income.[1]

Aussie tip: ANZ or DBS often favor Australian citizens—check Homejourney bank rates and financing options.[1][2] See Australian guide.[1]

Step 4: Negotiate Option to Purchase (OTP)

Agree price, pay 1% non-refundable fee for 14–21 day exclusivity.[1][5] Review terms carefully—exercise or forfeit fee.[1]

Steps 5–8: Legal, Financing, Completion

Sale & Purchase Agreement (S&P): Sign within 2–3 weeks of OTP; lawyer due diligence (3–5 days).[1][5]
Pay Stamp Duties: 14 days post-OTP exercise.[1]
Mortgage Finalization: Bank valuation (5–7 days), Letter of Offer (7–10 days).[1][3]
Completion: 8–12 weeks post-OTP; transfer title at SLA, collect keys. Top up if valuation low.[1][3]

Total timeline table:

Milestone	Duration
IPA to Approval	3–5 days
OTP Validity	14–21 days
Total to Keys	8–14 weeks

Post-purchase: Book aircon services via Homejourney.[3]

Common Mistakes and Insider Tips

Avoid: Skipping IPA (delays offers), underestimating ABSD (cash crunch), ignoring resale defects.[1] Red flags: Unverified agents, rushed OTPs. Homejourney verifies for safety.[1]

Tip: For remote buys, use remote guide.[1]
Pro: Engage Homejourney early for transparent support.

Seek lawyers/banks; this isn't financial advice.

FAQ: Step-by-Step Property Buying for Foreigners

Q: Can foreigners buy landed property?
A: Sentosa Cove yes; others need rare SLA approval.[1][4]

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

Q: How long does the process take?
A: 8–14 weeks offer to keys.[1][2]

Q: Can foreigners use CPF?
A: No, cash or bank loans only.[1]

Q: Best financing for Australian buyers?
A: Check IPAs from DBS/ANZ via Homejourney rates.[1]

Ready? Start safely with Homejourney's property search and link back to our pillar on full Singapore buying process. Your trusted partner for secure property journeys.