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

The step-by-step property buying process for foreigners in Singapore involves checking eligibility, securing financing pre-approval, obtaining an Option to Purchase (OTP), exercising the option, paying stamp duties like ABSD at 60%, and completing legal formalities for key collection. This process ensures transparency and safety, aligning with Homejourney's commitment to user trust and verified information.

As a foreigner, you can buy condominiums, approved non-restricted properties, and Sentosa Cove landed homes without special approval, but HDB flats require HDB Flat Eligibility (HFE) letter and are limited.[1][2][3] This cluster article details the tactical steps, connecting to our pillar guide on Step-by-Step Property Buying Process for Foreigners | Homejourney ">Singapore Property Buying Essentials for comprehensive coverage.

Why Foreigners Choose Singapore Property in 2026

Singapore's stable governance and high-quality living make it ideal for long-term investment, despite high costs like 60% ABSD for foreigners on residential properties.[1][3] In 2025, foreign non-PR buyers purchased just 2.9% of non-landed CCR homes, showing a selective market.[8] Homejourney verifies listings via Property Search ">property search to help you find safe options.

Current market context: ABSD rates remain at 60% unchanged through 2026, with Buyer’s Stamp Duty (BSD) tiered from 1-6%.[1] FTA eligibility offers ABSD remission for Free Trade Agreement buyers meeting conditions like minimum S$10,000 salary and 1-year employment.FTA ABSD Remission Singapore: Eligibility Rules & Guide | Homejourney

Step 1: Confirm Eligibility and Property Types

Foreigners can purchase apartments in buildings over 6 stories (condos), strata-landed in approved developments, short-term leasehold landed (≤7 years), and Sentosa Cove landed properties without Land Dealings Approval Unit (LDAU) permission.[2][3] Restricted properties like low-rise apartments or vacant land need approval under the Residential Property Act.[2]

Actionable tip: Use Homejourney's Projects Directory ">projects directory to filter foreigner-eligible condos, e.g., in prime areas like Orchard or Sentosa. Check Types of Properties Foreigners Can Buy in Singapore | Homejourney ">types of properties foreigners can buy for details.

Verify your status: Non-PR foreigners pay 60% ABSD; PRs pay 5-35%.[3]
Assess FTA conditions: Eligible nationalities (e.g., US, Australia) qualify for ABSD exemption if employed ≥1 year at ≥S$10,000/month. Review FTA ABSD Remission Singapore: Eligibility Rules & Guide | Homejourney ">FTA ABSD remission rules.[1]
For HDB resale: Apply for HFE letter via HDB portal.[3]

Insider tip: Sentosa Cove offers luxury landed options like good class bungalows, popular with expats for family living near One°15 Marina Club (5-min drive).

Step 2: Secure In-Principle Approval (IPA) for Financing

Before offers, get IPA from banks—valid 30 days—showing affordability under TDSR (60% debt servicing) and LTV limits (50-70% for foreigners).[1][7] Documents needed: passport, work pass, 3-6 months payslips/bank statements, tax assessments, overseas credit report.[1]

Explore options via Homejourney's Bank Rates ">bank rates and Financing Options for Foreign Buyers in Singapore | Homejourney ">financing guide for foreign buyers. CPF unavailable for foreigners.[3]

Timeline: 3-5 business days for salaried expats.[1]

Step 3: Negotiate and Obtain Option to Purchase (OTP)

Found a property? Negotiate price; pay 1% option fee (non-refundable if you back out) for 14-21 days exclusivity.[1][4] Seller's agent drafts OTP.

Shortlist via Property Search ">Homejourney search.
Submit IPA to agent for credibility.
Pay fee via cashier's order same day.[1]

Example: S$2M condo—1% fee = S$20,000, credited to purchase if proceeding.

Step 4: Engage Lawyer and Conduct Due Diligence

Within 24 hours of OTP, hire a conveyancing lawyer for title searches, MCST records check (maintenance arrears), encumbrances, and planning compliance.[1] Lawyer reviews draft S&P Agreement.

Red flags: Caveats, unpaid taxes, disputes. Preliminary report in days.[1] Homejourney recommends verified lawyers for safe transactions.

Step 5: Exercise OTP and Pay Stamp Duties

Before expiry, sign acceptance, pay balance deposit (total 5%). Triggers BSD (1-6%) and ABSD (60%)—due 14 days to IRAS.[1][5] Lawyer handles e-stamping; late fees apply.

Calculate via ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD calculator. FTA buyers: Submit for remission post-purchase if qualifying conditions met (e.g., property as primary residence).[1]

Duty	Rate (2026)	S$2M Example
BSD	Tiered 1-6%	~S$100K
ABSD (Foreigner)	60%	S$1.2M

Step 6: Finalize Mortgage, Valuation, and Completion

Submit exercised OTP to bank; valuation (1 week) must match/exceed price.[1] Sign Letter of Offer, execute mortgage docs. Completion: 8-12 weeks total; pay balance, collect keys.[1][4]

Post-purchase: Budget for maintenance—use Aircon Services ">aircon services for upkeep.

Financial Breakdown and Common Mistakes

All-in costs (S$2M condo): ABSD S$1.2M, BSD ~S$100K, legal/agent fees 2-3% (S$40-60K), total cash needed ~65%+.[1]

Mistake 1: Skipping IPA—sellers reject unproven buyers.[1]
Mistake 2: Missing ABSD deadline—penalties up to 50%.[1]
Mistake 3: Ignoring valuation gaps—top up cash shortfall.[1]
Prevention: Use Homejourney tools for verified data.

Disclaimer: This is general info; consult professionals for advice. Rates per URA/IRAS 2026.[1][3]

FAQ: Step-by-Step Property Buying for Foreigners

Q1: How do I qualify for ABSD exemption as a foreigner?
Meet FTA eligibility: Eligible nationality, ≥1-year employment pass at ≥S$10,000/month, property as primary residence. Check remission requirements via IRAS.[1]FTA ABSD Remission Singapore: Eligibility Rules & Guide | Homejourney

Q2: What documents for IPA?
Passport, work pass, payslips, tax returns, bank statements.[1]

Q3: Timeline for buying?
IPA: 3-5 days; OTP exercise to completion: 8-12 weeks.[1][4]

Q4: Can foreigners buy landed property?
Yes, Sentosa Cove or with LDAU approval elsewhere.[3]

Q5: ABSD rate 2026?
60% for foreigners; use ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">calculator.[1]

Ready to start? Search verified properties on Property Search ">Homejourney and link back to our pillar for full Singapore buying guide. Homejourney prioritizes your safety with transparent processes.