Step-by-Step Property Buying Process for Foreigners in Singapore
Foreigners can buy condominiums, apartments, and certain landed properties in designated areas like Sentosa Cove without restrictions, but must navigate strict rules including 60% ABSD, LTV limits, and specific documentation.[1][2]
This step-by-step property buying process for foreigners outlines the exact roadmap, from eligibility checks to key collection, ensuring a secure transaction. Homejourney prioritizes your safety by verifying listings and providing transparent guidance, linking back to our pillar guide on Homejourney's 2026 Guide: Foreigners Buying Property in Singapore for comprehensive foreign buyer strategies.
Eligibility: What Foreigners Can Buy in 2026
Under Singapore's Residential Property Act, foreigners are restricted from purchasing HDB flats but can freely buy private condominiums, executive condominiums (ECs) after privatization (10 years old), strata-landed homes in approved developments, and landed properties in Sentosa Cove.[2]
Landed properties outside Sentosa Cove require special approval from the Singapore Land Authority (SLA), granted case-by-case for those demonstrating exceptional economic contributions.[1][2] Always verify eligibility via official URA portals before proceeding.
Insider tip: Start your search on Homejourney's verified Property Search to filter foreigner-eligible properties like condos in prime areas such as Orchard or Marina Bay.
Key Restrictions Summary
- Allowed without approval: Condos, privatised ECs, Sentosa Cove landed.[2]
- Approval needed: Other landed (terrace, semi-D, bungalow).[2]
- Prohibited: HDB flats, vacant residential land, non-approved strata-landed.[2]
Step 1: Secure In-Principle Approval (IPA) for Financing
Before viewing properties, obtain an IPA from banks to confirm borrowing power. Foreigners face 70% LTV limits (or lower per TDSR/MSR if applicable), with loans capped at 35-75 years tenure based on age.[1]
Submit: passport, work pass, employment contract, 3-6 months payslips, bank statements, IRAS Notices of Assessment, and overseas credit reports.[1] IPAs arrive in 3-5 days and last 30 days.
Compare rates on Homejourney's Bank Rates or explore Foreign Buyer Loans in Singapore 2026: Rates, LTV & Bank Options . This proves seriousness to sellers.
Step 2: Shortlist and Negotiate Option to Purchase (OTP)
Identify properties via Homejourney's Projects Directory . Negotiate price; pay 1% option fee (non-refundable if you back out) for 14-21 days exclusivity.[1]
OTP grants time for due diligence. For a S$2M condo, expect S$20,000 option fee, credited if proceeding.[1]
Step 3: Engage Conveyancing Lawyer and Conduct Due Diligence
Within 24 hours of OTP, hire a lawyer for title searches, encumbrance checks, MCST records review, and draft S&P Agreement scrutiny.[1]
Red flags include caveats, unpaid taxes, or maintenance arrears. Lawyers deliver reports in days; abort if issues arise before exercising OTP.
Homejourney recommends verified lawyers for seamless, safe transactions.
Step 4: Exercise OTP and Pay Stamp Duties
Sign OTP acceptance, pay balance deposit (total 5% of price). Trigger BSD (up to 6%) and 60% ABSD for foreigners on residential buys.[1]
Pay within 14 days via lawyer's e-stamping to IRAS; use Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney . On S$2M property: S$1.2M ABSD + BSD.[1]
Step 5: Finalize Mortgage and Valuation
Submit exercised OTP to bank; they order valuation (1 week).[1] If valuation < purchase price, cover shortfall in cash.
Sign formal Letter of Offer, review prepayment penalties. Bank's lawyers prepare mortgage docs.
Step 6: Completion and Key Collection
Pay downpayment (25% min for foreigners), balance via loan/cash at completion (8-12 weeks post-OTP).[1]
Sign S&P Agreement, transfer funds securely. Lawyer handles caveats removal, title transfer to LRD. Collect keys post-completion.
Post-purchase, schedule maintenance via Aircon Services .
Costs Breakdown for Foreigners (S$2M Condo Example)
| Item | Amount |
|---|---|
| ABSD (60%) | S$1,200,000[1] |
| BSD (up to 6%) | S$110,000[1] |
| Option Fee (5% total) | S$100,000[1] |
| Legal/Lawyer Fees | S$5,000-S$10,000 |
| Valuation/Other | S$3,000+ |
Disclaimer: Costs vary; consult professionals. Not financial advice. Total all-in ~65% extra on purchase price.[1]
Common Mistakes to Avoid
- Skipping IPA: Sellers reject unfinanced offers.[1]
- Missing ABSD deadline: Penalties apply.[1]
- Ignoring valuation gaps: Prepare cash buffer.
- Not checking property history: Lawyer due diligence prevents surprises.[1]
Link to Types of Properties Foreigners Can Buy in Singapore | Homejourney for property types.
FAQ: Step-by-Step Property Buying for Foreigners
1. How long does the process take?
8-12 weeks from OTP to keys, plus 2-4 weeks for IPA/OTP.[1]
2. Can foreigners use CPF?
No, CPF is for citizens/PRs only.[2]
3. What's the ABSD rate in 2026?
60% for all residential properties.[1]
4. Do I need a lawyer?
Yes, mandatory for due diligence and stamping.
5. How to finance as a foreigner?
Bank loans up to 70% LTV; see Financing Options for Foreign Buyers in Singapore 2026 | Homejourney .[1]
Ready to start? Search safe, verified properties on Homejourney's Property Search and follow our step-by-step property buying process for foreigners. For full details, visit the pillar guide: Homejourney's 2026 Guide: Foreigners Buying Property in Singapore . Homejourney ensures transparent, secure journeys—your trust is our priority.
