Step-by-Step Property Buying Process for Foreigners in Singapore
Foreigners can buy private condominiums, apartments, and certain approved properties in Singapore without HDB restrictions, but must navigate ABSD at 60% and secure financing pre-approval first[1][2]. This step-by-step property buying process for foreigners outlines the exact roadmap, from eligibility checks to key collection, ensuring a safe transaction in line with Homejourney's commitment to user trust and verification.
At Homejourney, we prioritize transparency by verifying property details and guiding users through regulated processes. This cluster article dives into tactical steps, linking back to our comprehensive Step-by-Step Property Buying Process for Foreigners | Homejourney ">pillar guide on property buying for broader context. Whether you're an Indian buyer exploring Singapore property or an NRI investor, follow these steps for confidence[1].
Step 1: Confirm Eligibility and Property Types
Start by verifying what you can buy. Foreigners cannot purchase HDB flats but can freely buy condominium units, apartments, and strata-landed houses in approved developments[2][5]. Landed properties like bungalows or terrace houses require Land Authority (SLA) approval, typically granted only in Sentosa Cove for exceptional economic contributors[2][4].
For Indian citizens buying property in Singapore, focus on private condos—no prior approval needed. Use Homejourney's Property Search ">property search tool to filter eligible listings verified for accuracy. Insider tip: Check URA's Master Plan online for future developments near your shortlisted condo, like those along Thomson Road MRT.
Actionable Checklist
- Review Residential Property Act via SLA website for restrictions.
- Confirm no HDB eligibility—foreigners are excluded[5].
- Explore Types of Properties Foreigners Can Buy in Singapore | Homejourney 2026 ">types of properties foreigners can buy for details.
Step 2: Calculate Costs Including ABSD and BSD
Budget for Buyer's Stamp Duty (BSD) on all purchases and Additional Buyer's Stamp Duty (ABSD) at 60% for foreigners on residential properties in 2026[1][2]. For a S$2 million condo, expect S$1.2 million ABSD plus BSD (up to 6% tiered), due within 14 days of exercising the Option to Purchase (OTP)[1].
Hidden costs include 1% option fee, 4% additional deposit, lawyer fees (S$2,000–S$5,000), and valuation. Use Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD calculator for precise estimates. Indian buyers guide: Factor in currency conversion—S$1.2 million ABSD equals roughly ₹75 lakh at current rates.
Cost Breakdown Table
| Item | Example for S$2M Condo |
|---|---|
| ABSD (60%) | S$1.2M |
| BSD (Tiered) | ~S$100K |
| Option Fee (1%) | S$20K |
| Total Upfront | ~S$1.32M |
Step 3: Secure In-Principle Approval (IPA) for Financing
Before offers, apply for IPA from banks—valid 30 days. Foreigners face Loan-to-Value (LTV) limits of 70% max tenure (up to 35 years or age 75), TDSR caps at 55% of income[1]. Submit passport, employment pass, 3–6 months payslips, IRAS NOA, and overseas credit report[1].
Check Bank Rates ">bank rates on Homejourney for competitive mortgages. For NRIs buying Singapore property, banks like DBS prioritize stable EP holders. Approval takes 3–5 days; without IPA, sellers won't grant OTP[1].
Step 4: Negotiate and Obtain Option to Purchase (OTP)
Shortlist via Projects ">projects directory, negotiate price. Pay 1% option fee for 14–21 days exclusivity—non-refundable if you back out[1]. Homejourney verifies seller credentials for safety.
Timeline: Day 0—receive signed OTP via agent. Engage lawyer immediately for due diligence[1].
Step 5: Conduct Due Diligence and Exercise OTP
Your conveyancer checks title, MCST records, encumbrances (2–3 days). Pay balance deposit to 5%, exercise OTP—now legally bound[1]. Pay stamp duties within 14 days via lawyer's e-stamping.
Red flag: Outstanding maintenance fees—abort if found. Reference Financing Options for Foreign Buyers in Singapore | Homejourney ">financing options post-OTP.
Step 6: Finalize Mortgage, S&P Agreement, and Completion
Bank valuations (1 week); sign Letter of Offer. Execute Sale & Purchase (S&P) within 3 weeks of receipt[3]. Completion: 8–12 weeks later—pay balance, collect keys. Total timeline: 2–4 months[1].
Post-purchase, schedule Aircon Services ">aircon services via Homejourney for maintenance.
Common Mistakes to Avoid
- Skipping IPA—leads to failed deals.
- Ignoring ABSD—budget shock on S$2M property.
- No lawyer early—misses title issues.
- For Indians: Overlooking EP renewal impacting tenure.
Seek professionals; this is not financial advice—consult licensed advisors.
FAQ: Step-by-Step Property Buying Process for Foreigners
Can Indian citizens buy property in Singapore? Yes, condos freely; see our Indian Citizens Guide to Buying Property in Singapore 2026 ">Indian buyer guide. ABSD 60% applies[1].
How long does the process take? 8–14 weeks from OTP to keys[1].
What documents for IPA? Passport, payslips, tax returns[1].
Is ABSD payable upfront? Yes, within 14 days of OTP exercise[1].
Can NRIs use home loans? Yes, with LTV limits; check Mortgage Rates ">mortgage rates.
Ready to start? Use Homejourney's verified tools for a safe journey. Explore our Step-by-Step Property Buying Process for Foreigners | Homejourney ">full pillar guide and begin your Property Search ">property search today.
