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

Step-by-Step Property Buying Process for Foreigners in Singapore

Foreigners can buy private condominiums and certain approved properties in Singapore without prior approval, but must navigate high ABSD rates of 60% and specific financing rules.[1][2][4] This step-by-step property buying process for foreigners outlines the exact sequence from eligibility check to key collection, helping you avoid pitfalls in 2026's market. Homejourney prioritizes your safety by verifying every detail for confident decisions.

As a cluster article supporting our comprehensive pillar on Singapore property for foreigners, this focuses on the tactical buying timeline. Current market data shows condo prices stabilizing post-2023 cooling measures, with ABSD unchanged at 60% for foreigners.[1][6] Start here for actionable steps backed by official URA and IRAS guidelines.

Step 1: Confirm Eligibility and Property Types

Foreigners can purchase condominium units, strata-landed houses in approved developments, short-term leasehold estates (up to 7 years), and landed properties on Sentosa Cove without Land Dealings Approval Unit (LDAU) permission.[2][3][4] HDB flats are restricted to Singapore citizens and PRs only. For landed properties outside Sentosa, apply to SLA's LDAU, which rarely approves mainland purchases.[3]

Insider tip: Americans may qualify for US FTA exemption or zero ABSD American benefits under the US-Singapore Free Trade Agreement for their first property—check details in our related guide How Americans Avoid 60% ABSD: US FTA Exemption Guide | Homejourney . Use Homejourney's projects directory to filter foreigner-eligible condos like those in District 10 (e.g., near Orchard MRT, 5-min walk).

Key Restrictions Table

Property Type	Foreigner Eligibility
Condominiums	Yes, no approval needed[1][4]
HDB Flats	No[2]
Landed (Mainland)	LDAU approval required[3]
Sentosa Cove Landed	Yes[2]

Step 2: Calculate Costs Including ABSD and BSD

Budget for Buyer's Stamp Duty (BSD) at progressive rates up to 6% plus ABSD for foreigners Singapore 2026 at 60% on purchase price or valuation (whichever higher).[1][2] Example: S$2M condo incurs S$1.2M ABSD + ~S$100K BSD, payable within 14 days of exercising Option to Purchase (OTP). Use Homejourney's ABSD calculator for precise figures.

Upfront costs: 1% OTP fee + 4% balance deposit = 5% total[1][5]
Hidden fees: Lawyer (~S$2K-5K), valuation (~S$500), stamp duties
US citizens: Explore American avoid ABSD via US Singapore FTA property exemption for first buy[8]

Disclaimer: Rates per IRAS 2026; consult professionals as rules evolve. Homejourney verifies data from official sources for your trust.

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

Before offers, get IPA from banks—valid 30 days, based on income and credit.[1][7] Foreigners face 25% minimum down payment, Loan-to-Value up to 75%, and TDSR limits (60% debt servicing).[8] Documents needed: passport, work pass, 3-6 months payslips, tax assessments, bank statements.[1]

Compare rates via Homejourney's bank rates page. Pro tip: Salaried expats get IPAs in 3-5 days; self-employed take longer. See financing details in Financing Options for Foreign Buyers in Singapore | Homejourney .

Step 4: Find and Offer on Properties

Search verified listings on Homejourney's property search. Shortlist via projects directory. Negotiate price; pay 1% OTP fee for 14-21 days exclusivity.[1]

View 5-10 units (e.g., check MCST records for maintenance fees ~S$400/month)
Submit offer; agent drafts OTP
Pay fee via bank transfer same day

Link to property types guide: Types of Properties Foreigners Can Buy in Singapore | Homejourney .

Step 5: Legal Due Diligence and Exercise OTP

Engage conveyancing lawyer within 24 hours of OTP (~S$3K fees).[1] They check title deeds, caveats, URA compliance, MCST arrears. Pay 4% balance deposit to exercise OTP, triggering stamp duties.[1]

Timeline: 7-10 days for lawyer's report. Red flags: unpaid taxes or disputes—abort if found. Lawyer handles IRAS e-stamping.

Step 6: Finalize Mortgage and Completion

Bank orders valuation (1 week); if below price, top up cash.[1] Sign Letter of Offer, execute mortgage docs. Completion: 8-12 weeks post-OTP; pay balance via banker's guarantee. Collect keys; register title at Land Registry.

Post-purchase: Budget for maintenance—use Homejourney's aircon services for upkeep.

Common Mistakes to Avoid

Skipping IPA: Sellers reject unfinanced offers[1]
Ignoring ABSD: S$1.2M shock on S$2M buy[1]
No lawyer early: Miss encumbrances, lose deposit
Overlooking TDSR: Loan rejection mid-process[8]

Real example: A foreigner in 2025 lost S$20K deposit on a District 9 condo due to undisclosed MCST lawsuit—always verify via lawyer.

Financial Breakdown for S$2M Condo (Foreigner, No Exemption)

Item	Amount (SGD)
ABSD (60%)	1,200,000[1]
BSD	~100,000[2]
Deposit (5%)	100,000[5]
Total Upfront	~1,400,000

Homejourney builds trust through transparent tools—explore our pillar on Step-by-Step Property Buying Process for Foreigners in Singapore 2026 | Homejour... for full details.

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

1. Can Americans avoid ABSD in Singapore?
Yes, via US-Singapore FTA exemption for first property—zero ABSD possible. Details in How Americans Avoid 60% ABSD: US FTA Exemption Guide | Homejourney .[8]

2. What's the timeline for foreigners buying a condo?
IPA (3-5 days), OTP (1 day), due diligence (7-10 days), completion (8-12 weeks).[1]

3. Do foreigners need a lawyer for property purchase?
Essential—handles searches, stamping. Engage post-OTP.[1]

4. How much down payment for foreigners?
Minimum 25% for mortgages.[8]

5. Where to start property search safely?
Use Homejourney's verified property search for trusted listings.

Ready to begin your safe journey? Search properties on Homejourney today and link back to our pillar for complete guidance. Prioritizing your security every step.