Step-by-Step Property Buying Process for Foreigners in Singapore
The step-by-step property buying process for foreigners in Singapore involves eligibility checks, financing pre-approval, securing an Option to Purchase (OTP), legal due diligence, stamp duty payments, and completion. Foreigners, including UAE buyers and Dubai residents, can primarily buy condominiums without restrictions, but face 60% Additional Buyer's Stamp Duty (ABSD) on residential properties in 2026[1][2]. Homejourney prioritizes your safety by verifying listings and providing transparent guidance to build trust in every transaction.
This cluster article details the tactical process, linking back to our pillar guide on Foreigners Buying Property in Singapore: Legal Process Guide 2026 Foreigners Buying Property in Singapore: Legal Process Guide 2026 | Homejourney . For Emirati investors and Middle East Singapore property seekers, follow these actionable steps for a secure purchase.
Step 1: Confirm Eligibility and Property Types
Foreigners cannot buy new HDB flats but can purchase resale HDB flats if married to a Singapore Citizen (with the spouse as essential occupier)[2]. Eligible properties include condominiums, apartments, strata-landed houses in approved developments, and Sentosa Cove landed properties[1][2][4]. Landed properties on mainland Singapore require Land Dealings Approval Unit (LDAU) approval from SLA, granted case-by-case for exceptional economic contributions[2][3].
Insider tip: Start with Homejourney's projects directory Projects to filter foreigner-eligible condos in prime areas like Orchard or Marina Bay. See related: Types of Properties Foreigners Can Buy in Singapore Types of Properties Foreigners Can Buy in Singapore | Homejourney .
Actionable Checklist
- Verify passport, work pass, or EP status.
- Exclude restricted types: vacant land, non-Sentosa bungalows, non-approved strata-landed[2].
- Use Homejourney's property search Property Search for verified listings.
Step 2: Calculate Costs and Secure In-Principle Approval (IPA)
Budget for Buyer's Stamp Duty (BSD) at progressive rates (up to 6% for properties over S$1.5M) plus 60% ABSD for foreigners on any residential property[1][2]. Example: S$2M condo incurs S$1.2M ABSD, payable within 14 days of exercising OTP[1]. Total upfront: 1% option fee + 4% deposit balance + stamp duties.
Apply for IPA from banks before offers. Submit passport, employment contract, 3-6 months payslips, tax assessments, and overseas credit reports[1]. IPAs valid 30 days; take 3-5 days for salaried expats[1]. Check mortgage rates Bank Rates via Homejourney. Related: Financing Options for Foreign Buyers Financing Options for Foreign Buyers in Singapore | Homejourney and ABSD Calculator ABSD Stamp Duty Calculator & Guide 2026 | Homejourney .
Cost Breakdown Table
| Cost Item | Example (S$2M Condo) |
|---|---|
| Option Fee (1%) | S$20,000 |
| Deposit Balance (4%) | S$80,000 |
| BSD (approx.) | S$105,000 |
| ABSD (60%) | S$1,200,000 |
| Lawyer/LTV Fees | S$5,000-S$10,000 |
Disclaimer: Rates per 2026 URA/IRAS rules; consult professionals. Homejourney verifies data for your confidence.
Step 3: Negotiate OTP and Conduct Due Diligence
With IPA, negotiate price via agent. Pay 1% option fee for 14-21 day OTP[1]. Immediately engage a conveyancing lawyer for title searches, MCST records, and encumbrance checks[1]. Red flags: unpaid taxes, disputes, or caveats—abort if found.
Timeline: OTP Day 0; lawyer report in days[1]. For UAE/Dubai buyers, coordinate wire transfers securely through Homejourney's trusted partners.
Step 4: Exercise OTP, Pay Stamp Duties, and Finalize Financing
Sign OTP acceptance, pay 4% balance (total 5% deposit)[1][5]. Lawyer handles e-stamping; pay BSD/ABSD within 14 days or face penalties[1]. Bank orders valuation (1 week); if below purchase price, cover shortfall in cash[1]. Sign Letter of Offer, then mortgage docs.
Step 5: Completion and Key Collection
S&P Agreement within 2-3 weeks of OTP[3]. Completion 8-12 weeks later: pay balance, transfer title via lawyer. Post-purchase, plan maintenance—book via Homejourney aircon services Aircon Services .
Full timeline: 2-4 months. Track via Homejourney dashboard for transparency.
Common Mistakes to Avoid for Foreign Buyers
- Skipping IPA: Sellers reject unproven offers[1].
- Underestimating ABSD: 60% shocks many; use Homejourney calculator.
- Ignoring Valuation Gaps: Top-up cash or lose deal[1].
- Delaying Lawyer: Miss OTP expiry without due diligence[1].
For Dubai resident property investors: Factor currency exchange; Homejourney verifies for safety.
Financial Considerations and LTV Limits
Foreigners get 70% Loan-to-Value (LTV) max, subject to TDSR (60% debt servicing)[1]. No CPF for foreigners. Hidden costs: 1-2% agent fees, valuation S$2,000+. See bank rates Mortgage Rates .
FAQ: Step-by-Step Property Buying Process for Foreigners
Q1: Can UAE buyers purchase condos in Singapore?
A: Yes, freely, but pay 60% ABSD. Start with Homejourney's verified listings Property Search . Related: UAE & Dubai Residents Guide UAE & Dubai Residents Buying Property in Singapore: Homejourney Guide .
Q2: How long does the process take?
A: 8-12 weeks from OTP to keys[1].
Q3: What documents for IPA?
A: Passport, payslips, tax returns, credit report[1].
Q4: Is Sentosa Cove easier for landed?
A: Yes, no special approval needed[2][4].
Q5: How to calculate ABSD?
A: 60% of purchase price; use Homejourney tool ABSD Stamp Duty Calculator & Guide 2026 | Homejourney .
Ready to start your step-by-step property buying process for foreigners? Search verified properties on Homejourney's platform Property Search , get IPA insights via rates Bank Rates , and connect to our pillar: Foreigners Buying Property Legal Guide Foreigners Buying Property in Singapore: Legal Process Guide 2026 | Homejourney . Homejourney ensures safe, transparent transactions—your trusted partner.
