Step-by-Step Property Buying Process for Foreigners in Singapore
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, and completing the transaction. This process typically takes 8-12 weeks and requires careful navigation of rules like 60% ABSD for foreigners in 2026. Homejourney prioritizes your safety by verifying all key steps to ensure transparent, confident decisions.
This cluster article dives deep into the tactical process, building on our pillar guide Types of Properties Foreigners Can Buy in Singapore | Homejourney 2026 Types of Properties Foreigners Can Buy in Singapore | Homejourney 2026 . Whether you're a first-time buyer or investor, follow these actionable steps tailored for 2026 regulations from URA and IRAS.
Step 1: Confirm Your Eligibility and Property Types
Foreigners can buy condominiums, apartments, and strata-landed homes in approved developments without prior approval, but landed properties outside Sentosa Cove require Land Dealings Approval Unit (LDAU) permission from SLA[1][2][3]. HDB resale flats are possible only if married to a Singapore Citizen under the Non-Citizen Spouse Scheme; new HDB BTOs are off-limits[2][3].
Insider tip: Start on Homejourney's property search Property Search to filter foreigner-eligible condos in prime areas like Orchard or Sentosa Cove, where average prices hit S$2,500-$3,500 psf in 2026. Always cross-check with URA's Master Plan for zoning restrictions.
Key Restrictions Summary
- Allowed: Condos, ECs after 10 years MOP, Sentosa Cove landed[1][2]
- Restricted: New HDB, non-Sentosa landed (needs SLA approval for exceptional economic contributors)[3]
- Prohibited: Vacant land, shophouses for residential use[2]
Link to our detailed cluster: Types of Properties Foreigners Can Buy in Singapore 2026 Types of Properties Foreigners Can Buy in Singapore 2026 for full pros/cons.
Step 2: Calculate Costs and Secure In-Principle Approval (IPA)
Budget for Buyer's Stamp Duty (BSD) at progressive rates up to 6% plus 60% Additional Buyer's Stamp Duty (ABSD) on purchase price or valuation—e.g., S$1.2M on a S$2M condo[1][2]. Use Homejourney's ABSD Stamp Duty Calculator ABSD Stamp Duty Calculator & Guide 2026 | Homejourney for instant estimates.
Next, apply for IPA from 1-2 banks. Submit passport, work pass, 3-6 months payslips, employment contract, IRAS Notices of Assessment, and overseas credit reports[1]. IPAs valid 30 days confirm Loan-to-Value (LTV) up to 70% for foreigners under TDSR (60% of income to debt)[1]. Taiwanese buyers, check Taiwan Buyer Mortgage Guide Taiwan Buyer Mortgage Guide: Singapore Property Financing 2026 | Homejourney for Taiwan buyer mortgage specifics like Taiwanese loan Singapore options.
Cost Breakdown Table for S$2M Condo
| Item | Amount |
|---|---|
| BSD | ~S$112,000 |
| ABSD (60%) | S$1,200,000 |
| OTP Deposit (5%) | S$100,000 |
| Legal/Lawyer Fees | S$3,000-S$5,000 |
Visit Homejourney bank rates Bank Rates for Taiwan citizen financing and ROC buyer bank loan comparisons. Disclaimer: Rates fluctuate; consult professionals for personalized advice.
Step 3: Negotiate and Obtain Option to Purchase (OTP)
With IPA in hand, negotiate via agents on Homejourney's projects directory Projects . Pay 1% option fee (non-refundable if you back out) for 14-21 days exclusivity[1]. Review terms carefully—insider tip: Insist on clauses for valuation shortfalls.
Common mistake: Skipping IPA—sellers reject unproven buyers. Real example: A 2025 Taipei expat lost S$20,000 option fee without financing proof[1].
Step 4: Engage Lawyer and Exercise OTP
Within 24 hours of OTP, hire a conveyancer for title searches, MCST checks, and encumbrance reviews[1]. Pay balance deposit to 5% total, sign acceptance—triggering stamp duties due in 14 days (IRAS e-stamping via lawyer)[1].
Timeline: Lawyer report in 2-3 days; exercise before expiry to avoid forfeiture.
Step 5: Finalize Financing and Complete Transaction
Bank orders valuation (1 week); if below price, top up cash[1]. Sign Letter of Offer, execute S&P Agreement within 2-3 weeks of receipt[3]. Completion 8-12 weeks later: Pay balance, collect keys. Total timeline from OTP: 2-3 months.
Link: Financing Options for Foreign Buyers Financing Options for Foreign Buyers in Singapore | Homejourney for Taiwan buyer mortgage deep dive.
Common Mistakes to Avoid
- Underestimating ABSD: 60% hits hard—factor into offers[1][2].
- No Due Diligence: Check for maintenance arrears via lawyer[1].
- Timing Stamp Duties Late: Penalties apply post-14 days[1].
- Ignoring TDSR: Banks stress-test at 3.5-4% rates[1].
Post-purchase, maintain with Homejourney aircon services Aircon Services . Is it worth 60% ABSD? See our analysis Is Singapore Property Worth Buying with 60% ABSD? 2026 Analysis .
FAQ: Step-by-Step Property Buying Process for Foreigners
Q: How long does the process take?
A: 8-12 weeks from OTP to keys, plus 1-2 months shortlisting[1].
Q: Can Taiwanese get mortgages in Singapore?
A: Yes, with Taiwanese loan Singapore via local banks; see IPA docs[1]. Link: Taiwan Buyer Mortgage Guide: Singapore Property Financing 2026 | Homejourney .
Q: What's the ABSD rate for foreigners in 2026?
A: 60% on residential purchases[1][2]. Use our calculator.
Q: Do I need a lawyer?
A: Essential for due diligence and stamping[1].
Q: Can I buy HDB as a foreigner?
A: Resale only if married to citizen[2][3].
Ready to start? Search verified properties on Homejourney property search Property Search for a safe, trusted journey. This step-by-step property buying process for foreigners ensures transparency—explore our pillar for more Types of Properties Foreigners Can Buy in Singapore | Homejourney 2026 . Homejourney: Your safety-first partner.
