Step-by-Step Property Buying Process for Foreigners in Singapore
Foreigners can buy condominiums, apartments, and certain landed properties in Singapore by following a structured process: secure financing pre-approval, obtain an Option to Purchase (OTP), conduct legal due diligence, pay stamp duties including 60% ABSD, and complete the transaction at TOP or CSC.[1][2]
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 with verified listings and transparent tools, ensuring confident decisions in a trusted environment.[1]
Eligibility: What Foreigners Can Buy
Foreigners, including non-PR individuals, can purchase private condominiums, apartments, strata-landed houses in approved developments, short-term leasehold landed properties (up to 7 years), and landed properties on Sentosa Cove without special approval.[2]
Landed properties elsewhere require case-by-case approval from the Land Dealings Approval Unit (LDAU) under the Residential Property Act, typically granted for exceptional economic contributions.[2][3]
HDB flats are restricted; only resale HDB with a Singapore Citizen spouse via the Non-Citizen Spouse Scheme, listing the foreigner as an essential occupier.[2][3] Executive Condominiums (ECs) are off-limits until privatized after 10 years.[3]
Insider tip: Start your search on Property Search for verified condos in prime areas like Orchard or Sentosa Cove, where foreigners frequently invest.
BSD Foreigner and ABSD Rates 2026
Buyer’s Stamp Duty (BSD) applies to all buyers on a progressive scale: 1% on first S$180,000, up to 6% above S$1.5M. Foreigners pay Additional Buyer’s Stamp Duty (ABSD) at 60% of purchase price or valuation (whichever higher), due within 14 days of exercising OTP.[1][2]
For a S$2M condo, expect S$1.2M ABSD plus BSD around S$92,600, totaling over S$1.3M in duties. Use Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney for a precise stamp duty calculator foreign buyer tool.
Detail our Singapore Property Stamp Duty for Foreigners: BSD & ABSD 2026 Guide | Homejourne... for full BSD foreigner and ABSD rates breakdown.
Step-by-Step Process: From Search to Keys
Follow this proven 6-step roadmap, tailored for foreigners in 2026.[1]
- Shortlist and Verify Eligibility: Identify condos via Projects Directory . Confirm property type suits foreigners; avoid new HDB or unapproved landed.[2]
- Secure In-Principle Approval (IPA): Apply with banks using passport, work pass, 3-6 months payslips, NOA, and overseas credit report. IPAs valid 30 days, issued in 3-5 days.[1]
- Negotiate and Obtain OTP: Pay 1% option fee (e.g., S$20,000 on S$2M property) for 14-21 days exclusivity. Non-refundable if you back out.[1]
- Engage Conveyancing Lawyer: Instruct solicitor for title searches, MCST checks, and S&P review within 24 hours. Spot red flags like arrears or caveats.[1]
- Exercise OTP and Pay Deposits/Duties: Pay balance to 5% total deposit, then BSD/ABSD within 14 days via lawyer's e-stamping. Late fees apply.[1]
- Finalize Financing and Completion: Bank valuation (1 week); sign Letter of Offer. Pay remaining 75-90% at TOP (keys handed) or CSC.[1][3]
Timeline: 8-12 weeks for resale; longer for new launches. For financing details, check Financing Options for Foreign Buyers in Singapore 2026 | Homejourney and Bank Rates .
Financial Breakdown and LTV Limits
Foreigners face 50-60% Loan-to-Value (LTV) limits, down from higher pre-cooling measures. Total Debt Servicing Ratio (TDSR) caps at 55% of income.[1]
| Cost Item | Example on S$2M Condo |
|---|---|
| Option Fee (1%) | S$20,000 |
| Deposit Balance (4%) | S$80,000 |
| BSD + ABSD (60%+) | S$1.292M |
| Legal/Agent Fees | S$10,000-20,000 |
| Total Upfront | ~65% of price |
No CPF usage for foreigners. Insider tip: Factor 1-2% annual maintenance via MCST; budget for post-purchase services like Aircon Services .
Common Mistakes and Red Flags
Avoid paying OTP without IPA—sellers demand proof. Don't skip lawyer due diligence; unresolved caveats have sunk deals.[1] Miscalculate ABSD rates—use Homejourney's calculator to prevent shocks.
- Red flag: Seller pressure to skip searches.
- Mistake: Ignoring valuation gaps—forcing cash top-up.
- Tip: For Sentosa Cove, verify freehold status early.[2]
Seek professionals; this is not financial advice. Homejourney verifies data for your safety.
Next Steps with Homejourney
1. Use Property Search for foreigner-eligible listings.
2. Calculate duties via ABSD Stamp Duty Calculator & Guide 2026 | Homejourney .
3. Explore financing at Bank Rates .
Read our pillar on Singapore property basics and related clusters like property types for foreigners Types of Properties Foreigners Can Buy in Singapore | Homejourney .
Trust Homejourney for a secure journey—start today!
FAQ: Step-by-Step Property Buying Process for Foreigners
Q: What is the ABSD rate for foreigners in 2026?
A: 60% on residential purchases, payable within 14 days of OTP exercise.[1][2]
Q: Can foreigners use CPF for property?
A: No, CPF is unavailable; full cash or bank loans only.[3]
Q: How long does the process take?
A: 8-12 weeks for resale condos; keys at TOP.[1]
Q: Do I need a lawyer?
A: Yes, mandatory for due diligence and stamping.[1]
Q: Where to find foreigner-eligible properties?
A: Search verified condos on Projects and Property Search .
