Step-by-Step Property Buying Process for Foreigners | Homejourney
Foreigners can buy condominiums, strata-landed homes, and Sentosa Cove properties in Singapore without restrictions, but must follow a precise process involving Option to Purchase (OTP), stamp duties like 60% ABSD, and legal due diligence.[1][2]
This cluster article details the exact steps for a smooth transaction, building on our pillar guide to Step-by-Step Property Buying Process for Foreigners | Homejourney ">Singapore Property Buying Essentials. Homejourney prioritizes your safety with verified listings and transparent tools to ensure confident decisions in 2026's market.
Why Foreigners Choose Singapore Property in 2026
Singapore's stability and governance attract foreign buyers despite high costs like ABSD at 60% on residential purchases.[1][2] Condos remain popular for their accessibility—no approvals needed unlike landed properties requiring SLA permission.[2]
Current market data shows condos averaging S$2 million, with ABSD adding S$1.2 million—plan cash reserves accordingly.[1] Homejourney's Projects Directory ">projects directory verifies new launches for foreigners.
Eligibility Quick Check for Foreign Buyers
Foreign non-residents can purchase:
- Private condos and apartments
- Strata-landed in approved developments
- Sentosa Cove landed properties
- Privatised ECs over 10 years old (with conditions)
Landed elsewhere needs SLA approval, often for exceptional economic contributors.[2] See our related guide: Types of Properties Foreigners Can Buy in Singapore | Homejourney ">Types of Properties Foreigners Can Buy.
Step 1: Assess Eligibility and Budget
Confirm property types via URA guidelines—no HDB resale for non-PR foreigners.[2] Calculate costs: BSD (up to 6%) + 60% ABSD on higher of price/valuation, due within 14 days of OTP exercise.[1]
- Estimate total: For S$2M condo, ABSD = S$1.2M; add 1% agent fees, legal ~S$3,000-5,000.
- Use Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD Calculator for precision.
- Insider tip: Factor LTV limits—foreigners max 70% loan, downpayment 25-30% cash.[1]
Disclaimer: Rates per IRAS 2026; consult professionals for personalized advice.
Step 2: Secure In-Principle Approval (IPA) for Financing
Before offers, get IPA from banks—valid 30 days.[1] Submit:
- Passport, work pass
- 3-6 months payslips/bank statements
- IRAS Notices of Assessment (2 years)
- Overseas credit report, source of funds proof
Approval in 3-5 days for salaried expats; banks lend against lower of price/valuation.[1] Explore options in Financing Options for Foreign Buyers in Singapore 2026 | Homejourney ">Financing for Foreign Buyers and Bank Rates ">bank rates on Homejourney.
Step 3: Find and Shortlist Properties
Use Homejourney's Property Search ">property search for verified condos suited to foreigners, like those in Orchard or Sentosa Cove.
Example: A 2-bed condo at The Sail @ Marina Bay (~S$1.8M) offers city views; check MCST records for maintenance fees (~S$500/month).
Tip: Visit via MRT (e.g., Promenade station, 5-min walk); avoid unverified agents.
Step 4: Negotiate and Obtain Option to Purchase (OTP)
Agree price, pay 1% option fee (non-refundable if you back out).[1] OTP gives 14-21 days exclusivity.
Agent drafts; review terms like completion date (8-12 weeks).[3] For Chinese buyers, note capital controls—see China Capital Controls & Singapore Property: 2026 Buyer's Guide ">China Capital Controls Guide.
Step 5: Engage Lawyer and Conduct Due Diligence
Within 24 hours of OTP, hire conveyancer for title searches, encumbrances, MCST arrears.[1] Expect report in days; abort if issues like unpaid taxes.
Cost: S$2,000-4,000; lawyer handles e-stamping.
Step 6: Exercise OTP and Pay Stamp Duties
Pay 4% balance deposit (total 5%), sign acceptance.[1] Pay BSD/ABSD within 14 days via IRAS—late fees apply.
Timeline: Day 0 OTP, +2 weeks S&P Agreement, +3 weeks execution.[3]
Step 7: Finalize Loan and Complete
Bank valuations (1 week); sign Letter of Offer, mortgage docs.[1] Completion: Pay balance, collect keys; register at Land Titles Registry.
Total timeline: 8-12 weeks. Post-purchase, budget for maintenance—use Aircon Services ">aircon services via Homejourney.
Financial Breakdown Table
| Item | Example S$2M Condo |
|---|---|
| ABSD (60%) | S$1.2M |
| BSD (up to 6%) | S$110K |
| OTP Deposit (5%) | S$100K |
| Legal/Fees | S$5K-10K |
Source: IRAS/URA 2026 rates.[1][2]
Common Mistakes to Avoid
- Skipping IPA: Sellers reject unfinanced offers.[1]
- Missing ABSD deadline: Penalties up to 20%.[1]
- Ignoring valuation gaps: Top up cash if low.[1]
- No due diligence: Hidden liens cost thousands.
Red flag: Pressure to skip lawyer—always verify independently.
FAQ: Step-by-Step Property Buying Process for Foreigners
Q: Can Chinese nationals buy condos in Singapore?
A: Yes, follow standard foreigner process with OTP and 60% ABSD. PRC buyers should check capital outflows. Details in Chinese Nationals Buying Singapore Condo: Complete 2026 Guide ">Chinese Nationals Guide.
Q: What's the timeline for foreigners?
A: 8-12 weeks from OTP to keys, including 14-day stamp duty window.[1][3]
Q: Do foreigners get HDB flats?
A: No, unless PR status; stick to private condos.[2]
Q: How much downpayment?
A: 25-30% cash after 70% LTV loan max.[1]
Q: ABSD rate 2026?
A: 60% for all foreign individuals.[1]
Ready to start? Search verified properties on Homejourney's Property Search ">property search and follow this step-by-step property buying process for foreigners safely. Link back to our pillar for full Singapore buying essentials—trust Homejourney for transparent, verified journeys.
