Step-by-Step Property Buying Process for Foreigners in Singapore
Foreigners can buy condominiums, apartments, and certain landed properties like those in Sentosa Cove in Singapore, but must follow a strict process involving eligibility checks, financing pre-approval, Option to Purchase (OTP), stamp duties, and legal completion.[1][2][4]
This step-by-step property buying process for foreigners ensures compliance with Residential Property Act rules, including 60% Additional Buyer's Stamp Duty (ABSD) for all residential purchases in 2026.[1][2] Homejourney prioritizes your safety by verifying market data and providing transparent guidance, helping Taiwanese investors and others navigate securely. For broader context, see our pillar guide on Types of Properties Foreigners Can Buy in Singapore | Homejourney .
Step 1: Confirm Eligibility and Property Types
Start by verifying what you can buy. Foreigners (non-Singapore Citizens or PRs) can purchase private condominiums, apartments, strata-landed in approved developments, short-term leasehold landed (under 7 years), or Sentosa Cove landed properties without prior approval.[1][2][4]
Landed properties on mainland Singapore (terrace, semi-detached, bungalows) require Land Dealings Approval Unit (LDAU) approval from Singapore Land Authority (SLA), granted case-by-case for exceptional economic contributions.[2][3] HDB flats are restricted; resale HDB requires marriage to a Singapore Citizen, with the foreigner as essential occupier only.[2]
Insider tip: For Taiwanese property investment, focus on freehold condos in prime areas like Orchard or Marina Bay, where yields average 3-4% amid 2026 market stability.[1] Use Homejourney's Property Search to filter foreigner-eligible listings safely.
Actionable Checklist for Eligibility
- Hold valid passport, Employment Pass, or S Pass.
- Confirm property type via URA Master Plan (no approval needed for condos).[2]
- Calculate ABSD at 60% of purchase price or valuation (higher applies); e.g., S$2M condo = S$1.2M ABSD due within 14 days of OTP exercise.[1]
- PRs pay 5-35% ABSD based on existing properties.[2]
ABSD rates unchanged since April 2023 cooling measures.[1][2] Always cross-check with IRAS for latest.
Step 2: Secure In-Principle Approval (IPA) for Financing
Before offers, obtain IPA from 1-2 banks. Foreigners face Loan-to-Value (LTV) limits of 70% for loans, Total Debt Servicing Ratio (TDSR) at 55% of income, and no CPF usage.[1][3]
Submit: passport, work pass, 3-6 months payslips/bank statements, employment contract, 2 years tax assessments, overseas credit report, source of funds proof.[1] IPAs valid 30 days, issued in 3-5 days for salaried expats.[1]
Taiwan buyer analysis: ROC Singapore property buyers often secure 2-2.5% fixed rates via Homejourney's Bank Rates comparisons, beating cash-only risks. See Taiwan Buyer Mortgage Guide: Singapore Property Financing 2026 | Homejourney for details.[1]
Step 3: Find and Shortlist Properties
Search condos via trusted platforms like Homejourney's Projects Directory and Property Search , focusing on locations like District 10 (Bukit Timah) for family-friendly options or District 9 (Orchard) for investment.[1]
Budget all-in costs: purchase price + 1-4% Buyer's Stamp Duty (BSD) + 60% ABSD + 1% OTP fee + legal fees (S$3,000-5,000) + valuation (S$500-1,000).[1] For S$1.5M condo: ~S$1M+ taxes.
Avoid misconceptions: No HDB for singles; Sentosa Cove allows landed but premiums 20-30% higher.[2][4]
Step 4: Negotiate and Secure Option to Purchase (OTP)
Negotiate price; pay 1% option fee for 14-21 day exclusivity (non-refundable if you back out).[1][3] OTP binds seller; exercise by paying additional 4% deposit (total 5%).
Timeline: Day 0 - OTP payment; Day 0+2 weeks - receive Sales & Purchase (S&P) Agreement; Day 0+2+3 weeks - execute S&P, pay stamp duties within 14 days.[3]
Step 5: Engage Lawyer and Conduct Due Diligence
Within 24 hours of OTP, hire a conveyancing lawyer for title searches, encumbrance checks, MCST records (maintenance arrears), and S&P review.[1] Red flags: caveats, unpaid taxes, disputes.
Lawyers handle IRAS e-stamping for BSD/ABSD; penalties apply for late payment.[1] Cost: S$3,000-5,000, completed in days.
Step 6: Finalize Financing, Valuation, and Completion
Post-OTP exercise, bank orders valuation (1 week); formal Loan Offer follows if valuation ≥ price.[1] Sign mortgage docs; completion 8-12 weeks later with key collection.
Track via lawyer; top up cash if valuation shortfall.[1]
Costs Breakdown Table
| Item | Example (S$2M Condo) |
|---|---|
| ABSD (60%) | S$1.2M |
| BSD (1-4% tiered) | ~S$80K |
| OTP/Deposit (5%) | S$100K |
| Legal/Valuation | S$5K |
Total upfront: ~65% cash beyond loan. Use Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney for precise calcs.[1][2]
Common Mistakes to Avoid
- Skipping IPA: Sellers reject unfinanced offers.[1]
- Missing ABSD deadline: 8% p.a. penalties.[1]
- Ignoring TDSR: Overborrowing leads to rejection.[1]
- No due diligence: Hidden MCST debts surprise buyers.[1]
Real example: A Taiwanese investor lost S$20K OTP fee in 2025 overlooking valuation gap in East Coast condo.[1] Homejourney verifies projects via Projects to prevent this.
Post-Purchase: Maintenance and Management
After keys, budget for MCST fees (S$400-800/month) and upkeep. Homejourney offers Aircon Services for reliable maintenance, ensuring long-term value.[1]
FAQ: Step-by-Step Property Buying Process for Foreigners
Q1: Can Taiwan investors buy Singapore property?
Yes, ROC nationals follow the same process; see Taiwan Nationals Singapore Property Investment Analysis 2026 | Homejourney for yields and tips.[1][2]
Q2: What is the ABSD rate for foreigners in 2026?
60% on residential purchases, payable within 14 days of OTP exercise.[1][2]
Q3: How long does the process take?
8-12 weeks from OTP to completion.[1][3]
Q4: Can foreigners get mortgages?
Yes, up to 70% LTV; details in Financing Options for Foreign Buyers in Singapore 2026 | Homejourney .[1]
Q5: Disclaimer needed?
This is general info; consult professionals for advice. Homejourney verifies data for trust.
Ready to start? Search safe, verified properties on Homejourney's Property Search and calculate costs via Bank Rates . Link back to our pillar: Types of Properties Foreigners Can Buy in Singapore 2026 for full overview. Your trusted partner for secure Singapore property journeys.
