Step-by-Step Property Buying Process for Foreigners in Singapore
Foreigners can buy condominiums, apartments, and certain landed properties in approved areas like Sentosa Cove without restrictions on number, but must follow a precise process involving Option to Purchase (OTP), stamp duties, and financing pre-approval.[1][2][5]
This cluster article details the step-by-step property buying process for foreigners, building on Homejourney's comprehensive pillar guide to Singapore property ownership. At Homejourney, we prioritize your safety through verified information and transparent guidance, helping you navigate high-stakes decisions confidently.
Why This Process Matters for Foreign Buyers in 2026
Singapore's property market remains attractive for its stability, but foreigners face 60% Additional Buyer's Stamp Duty (ABSD) on residential purchases, plus Buyer’s Stamp Duty (BSD).[1][2] Current rules from the Residential Property Act limit HDB flats to citizens and PRs, directing foreigners to private condos or ECs over 10 years old.[2][5]
Market context: As of 2026, condo prices average S$2 million, with ABSD alone at S$1.2 million on such a purchase—due within 14 days of exercising OTP.[1] Homejourney verifies all data to ensure you avoid pitfalls in this competitive landscape.
Eligibility: What Foreigners Can Buy
Foreigners (non-PR) can purchase:
- Condominium or apartment units
- Strata-landed houses in approved developments
- Landed properties on Sentosa Cove
- Executive Condominiums (ECs) after 10 years from completion
Landed properties elsewhere require Landlords' approval via the Land Dealings Approval Unit (LDAU).[2][5] No HDB flats allowed.[5] For details, see Homejourney's Types of Properties Foreigners Can Buy in Singapore | Homejourney ">Types of Properties Foreigners Can Buy in Singapore.
Key Restrictions and Approvals
Leasehold estates over 7 years or vacant land need Singapore Land Authority permission.[3] PRs have broader options but still face ABSD tiers from 5-35%.[2] Always confirm eligibility via official URA or HDB portals before proceeding.
Step-by-Step Property Buying Process for Foreigners
Follow these 6 actionable steps, typically spanning 8-12 weeks from offer to completion. Homejourney's Property Search ">property search tool helps shortlist verified listings safely.
- Secure In-Principle Approval (IPA) for Financing (Days 1-5)
Submit passport, work pass, 3-6 months' payslips, employment contract, IRAS Notices of Assessment, and overseas credit reports to banks.[1] IPAs valid 30 days; salaried expats get approval in 3-5 days. Check Bank Rates ">Homejourney bank rates for foreigner mortgage Singapore options (LTV up to 75% tenure-limited).[1] - Negotiate and Obtain Option to Purchase (OTP) (Days 5-7)
Offer price; pay 1% option fee (non-refundable if you back out).[1] OTP grants 14-21 days exclusivity. Use Homejourney's Projects Directory ">projects directory for market insights. - Engage Conveyancing Lawyer (Within 24 Hours of OTP)
Lawyer conducts title searches, checks MCST records for arrears, and drafts Sale & Purchase (S&P) Agreement.[1] Insider tip: Request maintenance history—common red flag in older condos like those near Orchard MRT (5-min walk). - Exercise OTP and Pay Deposits (Before Expiry)
Sign acceptance, pay additional 4% (total 5% deposit).[1][3] Triggers BSD (up to 6%) and 60% ABSD, payable within 14 days via IRAS e-stamping.[1] Use Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD Calculator. - Finalize Mortgage and Valuation (Weeks 2-4)
Bank valuates property; loan based on lower of price/valuation.[1] Sign Letter of Offer. For foreign buyer loan details, explore Foreigner Mortgage Singapore: Complete 2026 Financing Guide | Homejourney ">Foreigner Mortgage Singapore Guide. - Completion and Key Collection (Weeks 8-12)
Execute S&P, pay balance via banker's guarantee. Lawyer handles caveats clearance. Total costs: 65%+ ABSD, legal fees ~0.4%, valuation ~S$500.[1]
Financial Breakdown and Hidden Costs
| Cost Item | Example (S$2M Condo) |
|---|---|
| ABSD (60%) | S$1.2M[1] |
| BSD (Tiered up to 6%) | S$110K[2] |
| OTP Deposit (5%) | S$100K[1] |
| Legal/Agent Fees | S$10K-15K[1] |
Bank loan foreigner LTV capped by age/tenure (max 35-75 years).[1][5] No CPF for foreigners. Hidden costs: Renovation (S$50K+), Aircon Services ">aircon servicing annually. TDSR limits total debt at 55% income.
Common Mistakes and Insider Tips
- Mistake: Skipping IPA. Sellers reject unfinanced offers. Tip: Get 2 IPAs first.[1]
- Mistake: Late ABSD. Penalties apply post-14 days. Tip: Lawyer handles e-stamping.
- Red Flag: Low Valuation. Top up cash shortfall. Example: S$2M purchase valuates at S$1.9M—pay extra S$100K.[1]
- Insider: Check flood history near Kallang River condos via PUB portal; affects insurance.
Disclaimer: This is general guidance; consult professionals for personalized advice. Homejourney verifies data but is not legal/financial advice.
FAQ: Step-by-Step Property Buying for Foreigners
1. How long does the property buying process take for foreigners?
8-12 weeks from OTP to keys, assuming smooth valuation.[1]
2. Can foreigners get a mortgage in Singapore?
Yes, up to 75% LTV with IPA. See Financing Options for Foreign Buyers in Singapore 2026 ">Financing Options for Foreign Buyers.[1]
3. What documents for foreigner mortgage Singapore?
Passport, payslips, tax assessments, credit reports.[1]
4. Is ABSD payable upfront?
Yes, 60% within 14 days of OTP exercise.[1][2]
5. Can foreigners buy landed property?
Only Sentosa Cove or with LDAU approval.[2][5]
Ready to start? Use Homejourney's Property Search ">property search for safe, verified listings. Link back to our pillar: Step-by-Step Property Buying Process for Foreigners | Homejourney ">Singapore Property Buying Pillar. Trust Homejourney for transparent, user-first property journeys.
