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

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

The step-by-step property buying process for foreigners in Singapore spans 8-12 weeks from Option to Purchase (OTP) to key collection, involving eligibility checks, financing pre-approval, OTP negotiation, stamp duty payments like 60% ABSD, and final completion. Homejourney ensures user safety by verifying every step, from property listings to seller credentials, creating a trusted environment for confident decisions.

This cluster focuses on tactical guidance for foreigners, linking back to our pillar Complete Singapore Property Buying Guide for Foreigners. Use Homejourney's Property Search to explore verified condos and Projects for market insights. Current 2026 market shows condo prices at S$2,000-S$3,500 psf in areas like Thomson Road MRT (5-min walk from Exit A).

Step 1: Confirm Eligibility and Allowed Property Types

Foreigners can freely buy condominiums, apartments, and strata-landed homes in approved developments without prior approval. Landed properties require Singapore Land Authority (SLA) Land Dealings Approval Unit (LDAU) permission, typically only for Sentosa Cove. HDB resale flats are restricted to those married to Singapore Citizens under the Non-Citizen Spouse Scheme; new BTO HDBs are prohibited.[1][2][3][4]

Allowed: Condos, ECs post-10-year MOP, Sentosa Cove landed.
Restricted: Non-Sentosa landed (SLA approval for economic contributors).
Prohibited: New HDB, vacant land, shophouses for residential use.[1][2]

Insider tip: Check URA Master Plan for developments near MRTs like Thomson Road. Dive deeper in our Types of Properties Foreigners Can Buy in Singapore 2026 . Homejourney verifies listings for compliance.

Step 2: Secure Financing Pre-Approval

Obtain In-Principle Approval (IPA) from banks like DBS before viewing properties—essential as sellers require it for OTP. Foreigners face Loan-to-Value (LTV) limits of 70% max, TDSR caps at 55% of income, and no CPF use. Approval takes 3-5 days; rates hover at 3-4% for stable EP holders.[1][2][5]

Actionable steps:

Check Bank Rates or Mortgage Rates on Homejourney for latest rates.
Gather passport, employment pass, income proofs (last 6 months).
Compare options in Financing Options for Foreign Buyers in Singapore | Homejourney .[1]

Example: S$2M condo needs S$600K downpayment (30%) + ABSD. Disclaimer: Consult professionals; rates fluctuate.[2]

Step 3: Search and Shortlist Properties

Use Homejourney's Property Search and Projects Directory to filter condos (e.g., S$2.5M units at 1,000 sq ft near Orchard MRT, 10-min walk). View 5-10 units; inspect MCST records for S$400/month maintenance fees. Negotiate 3-5% below asking in 2026's steady market.[1][3]

Red flags: Unverified sellers, high sinking funds. Homejourney prioritizes transparency by flagging issues.

Step 4: Negotiate and Secure Option to Purchase (OTP)

Submit offer; pay 1% OTP fee (S$20K on S$2M property) for 14-21 days exclusivity—non-refundable if you withdraw. Engage a lawyer for due diligence on title deeds, caveats. Sign via agent same day.[1][2]

OTP Fee	Timeline	Refundable?
1% of price	14-21 days	Yes, if seller fails
5% on exercise	Within OTP period	No

Timeline: Day 0 - Receive OTP.[1]

Step 5: Pay Stamp Duties and Finalize

Within 14 days of exercising OTP, pay Buyer's Stamp Duty (BSD ~4-6%) + 60% ABSD (S$1.2M on S$2M). Bank valuations (1 week); top up if below price. Sign Sale & Purchase Agreement (S&P) within 2-3 weeks; completion 8-12 weeks later with keys handover.[1][3]

Use ABSD Stamp Duty Calculator & Guide 2026 | Homejourney for calculations. Total costs: 65-70% upfront for foreigners.[2]

Common Mistakes and Insider Tips

Avoid skipping IPA—sellers reject offers without it. Overlook ABSD: It's on purchase price or valuation (higher). Real example: Foreign buyer at Hillview condo (near Cashew MRT, 3-min walk) saved S$50K by negotiating post-valuation.[1]

Verify via SLA for landed: Apply at SLA portal pre-OTP.[7]
Post-purchase: Book Aircon Services for maintenance.
Seek lawyer early; Homejourney connects verified pros.

Balanced view: Market cooling per Business Times Property , but prime areas stable.[10]

Financial Breakdown for S$2M Condo (2026)

Item	Amount
ABSD (60%)	S$1.2M
BSD	~S$100K
OTP + Exercise	S$120K
Downpayment (30% post-loan)	S$600K

Total upfront: ~S$2M. Not financial advice—verify with experts.[1][3]

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

Q: How long does the step-by-step property buying process for foreigners take?
A: 8-12 weeks from OTP to keys, plus 1-2 months shortlisting. Add SLA time for landed.[1][2]

Q: Can foreigners buy HDB flats?
A: No, except resale if married to a Citizen. Focus on condos.[4][5]

Q: What are ABSD rates for foreigners in 2026?
A: 60% on first purchase. Use our ABSD Rates by Nationality 2026: Complete Comparison for Singapore Buyers .[1][3]

Q: Do I need SLA approval for all landed?
A: Yes, except Sentosa Cove. Apply early.[5][7]

Q: How to finance as a foreigner?
A: IPA via banks; see Financing Options for Foreign Buyers in Singapore 2026 | Homejourney .[2]

Ready to start? Search verified properties on Homejourney's Property Search today. For full pillar coverage, visit our Complete Singapore Property Buying Guide for Foreigners. Homejourney—your trusted partner for safe transactions.