Step-by-Step Property Buying Process for Foreigners in Singapore
Buying property as a foreigner in Singapore is entirely possible, but the process differs significantly from what citizens and permanent residents experience. The key difference lies in restrictions, taxes, and financing terms—all of which Homejourney has verified to ensure you navigate safely and confidently.
This comprehensive guide walks you through each stage of the property buying journey, from initial financing approval through to collecting your keys. Whether you're an expat planning to stay long-term or an international investor, understanding this roadmap protects your interests and accelerates your transaction.
Understanding Your Eligibility as a Foreign Buyer
Before investing time and money, confirm what you're legally permitted to purchase. Foreigners in Singapore can buy private condominiums and apartments freely without prior approval. You may also purchase strata-landed houses within government-approved condominium developments and leasehold landed properties with terms not exceeding seven years. Properties on Sentosa Cove are also available to foreign buyers.
What you cannot buy: HDB flats (public housing) and freehold landed properties require Singapore Land Authority (SLA) approval, which is rarely granted to non-residents. This restriction exists to prioritize housing for citizens and permanent residents.
For a detailed comparison of what different residency statuses can purchase, refer to Homejourney's guide on Foreigner vs PR vs Citizen: Singapore Property Buying Rules 2026 ">foreigner vs PR vs citizen property buying rules. Understanding these distinctions prevents wasted effort pursuing ineligible properties.
Step 1: Assess Your Budget and Calculate True All-In Costs
This first step is non-negotiable and often overlooked by foreign buyers unfamiliar with Singapore's tax structure. Beyond the purchase price, you'll pay substantial stamp duties and fees that dramatically increase your total investment.
The ABSD shock: Additional Buyer's Stamp Duty (ABSD) for foreigners stands at 60% of the purchase price or valuation, whichever is higher. On a S$2 million condo, you'll remit S$1.2 million in ABSD alone, due within 14 days of signing the Sale and Purchase Agreement. This rate, unchanged since April 2023, aims to cool foreign demand and prioritize housing for citizens and PRs.
Beyond ABSD, budget for Buyer's Stamp Duty (BSD), legal conveyancing fees (typically S$1,500–S$3,000), property valuation fees (S$500–S$1,500), and agent commissions (usually 1–2% split between buyer and seller's agents, though foreign buyers often negotiate lower rates).
Homejourney's Singapore Property Stamp Duty for Foreigners: BSD & ABSD 2026 Guide | Homejourne... ">ABSD and BSD stamp duty guide provides current rates and a calculator to determine your exact liability. This transparency ensures no financial surprises mid-transaction.
Step 2: Secure In-Principle Approval (IPA) from Your Bank
Before making any offer, apply for an In-Principle Approval with one or two banks. This preliminary green light confirms the maximum loan amount you qualify for and is valid for 30 days. IPAs give you negotiating power with sellers and agents, demonstrating genuine purchasing intent.
Documentation required for foreign buyers: Prepare your valid passport and current visa or work pass, latest employment contract or letter of appointment, last three to six months' payslips or bank statements showing salary credits, latest Notice of Assessment from IRAS or your home-country tax authority for the past two years, overseas credit report if you have borrowings outside Singapore, and bank statements from your home country evidencing savings and deposit sources.
Salaried expatriates with straightforward income typically receive IPA approval within three to five business days. Self-employed foreigners or those with complex income structures may face longer processing times or additional documentation requests.
Foreign buyers face lower loan-to-value (LTV) limits than citizens and PRs—typically 75–80% of the property's valuation, compared to 90% for residents. This means you'll need larger cash reserves for down payments. Explore Financing Options for Foreign Buyers in Singapore 2026 | Homejourney ">financing options available to foreign buyers to understand your borrowing capacity and compare rates across banks.
Step 3: Find Your Property and Negotiate Terms
With financing pre-approval in hand, begin your property search. Use Homejourney's Property Search ">property search tool to filter by location, price, and property type, ensuring all listings meet foreign buyer eligibility criteria. Our platform prioritizes verified, accurate information to help you make confident decisions.
Once you've identified a suitable property, negotiate price and terms directly with the seller's agent. Factors influencing your negotiating position include market conditions, property condition, time on market, and your financing strength (demonstrated by your IPA).
When both parties reach agreement, the seller's agent drafts an Option to Purchase (OTP). This document grants you exclusive rights to buy at the agreed price for a fixed period, typically 14 or 21 days. You pay a non-refundable option fee of 1% of the purchase price, due the day you receive the signed OTP. If you proceed to purchase, this fee is credited against your purchase price.
Step 4: Engage a Conveyancing Lawyer Immediately
Within 24 hours of securing the OTP, instruct a licensed conveyancing lawyer to conduct comprehensive legal due diligence. This step is critical for protecting your interests and is non-negotiable in Homejourney's framework for safe property transactions.
Your lawyer will: Conduct title searches to verify ownership and identify any encumbrances, review MCST (Management Corporation Strata Title) records for outstanding maintenance arrears or disputes, check for caveats or legal claims against the property, verify property tax payment status, and review the draft Sale and Purchase Agreement for unfavorable terms.
Singapore conveyancers are efficient; expect a preliminary report within a few days. If red flags surface—such as caveats, unpaid property tax, planning violations, or structural defects noted in MCST records—your lawyer will advise whether to proceed or negotiate with the seller. This verification process is your safety net, preventing costly mistakes after you've committed financially.
Step 5: Exercise the Option to Purchase
Before the OTP expiry date, sign the OTP acceptance and pay the balance of the deposit to bring the total to 5% of the purchase price. At this point, you become contractually bound to the transaction, and both BSD and ABSD are triggered.
You have 14 days from exercising the OTP to pay stamp duties to IRAS (Inland Revenue Authority of Singapore). Late payment incurs penalties and interest, so coordinate closely with your lawyer, who typically handles e-stamping on your behalf. This strict timeline is non-negotiable and enforced by IRAS.
Once the OTP is exercised, you cannot walk away without losing your deposit and facing potential legal claims from the seller. This is why thorough legal due diligence in Step 4 is essential—it's your last opportunity to abort safely.
Step 6: Finalize Mortgage and Property Valuation
Notify your bank immediately that the OTP is exercised and provide a copy of the signed Sale and Purchase Agreement. The bank orders an independent property valuation, typically completed within one week.
Valuation risk: If the valuation comes in below your purchase price, the bank lends only against the lower valuation amount. You must cover the shortfall in cash. For example, if you agreed to pay S$2 million but the valuation is S$1.9 million and your LTV is 75%, the bank lends S$1.425 million (75% of S$1.9 million), requiring you to pay S$575,000 in cash instead of the anticipated S$500,000. This scenario is common in competitive markets, so maintain cash reserves above your calculated down payment.
Assuming valuation meets or exceeds your purchase price, the bank issues a formal Letter of Offer. Review all terms carefully: interest rates, lock-in clauses (penalties for early repayment), prepayment limits, and fee schedules. Clarify any terms before signing and returning the Letter of Offer to the bank.
Step 7: Complete Legal Conveyancing and Final Preparations
The bank's solicitors prepare mortgage documents for execution closer to completion. Your conveyancing lawyer coordinates with the seller's lawyer on final details: confirmation of completion date, arrangement of funds transfer, preparation of discharge documents for any existing mortgages on the seller's side, and coordination of key handover logistics.
Approximately one week before completion, conduct a final walkthrough of the property to verify it remains in agreed condition and that any agreed repairs or modifications have been completed. This final inspection protects you from inheriting unexpected defects.
Step 8: Completion and Key Handover
On completion day, your lawyer transfers the final balance payment to the seller's lawyer via electronic funds transfer. The seller's lawyer confirms receipt and releases the property keys and ownership documents. Your lawyer registers the mortgage with the Singapore Land Authority and updates the property register to reflect your ownership.
From application to completion typically takes 8–12 weeks for straightforward transactions. Complex situations—such as properties with multiple owners, outstanding legal claims, or financing complications—may extend this timeline.
Critical Timeline and Deadlines Summary
Foreign property buyers must navigate several strict deadlines. Homejourney emphasizes these because missing them incurs penalties and may jeopardize your transaction:
- Option fee payment: Due the day you receive the signed OTP
- OTP exercise deadline: Typically 14 or 21 days from OTP issuance
- Stamp duty payment: Due within 14 days of signing the S&P Agreement or exercising the OTP
- ABSD payment: Due within 14 days of signing the S&P Agreement or exercising the OTP (same deadline as stamp duty)
- Bank valuation: Typically completed within one week of OTP exercise
- Completion: Usually 8–12 weeks from OTP exercise, depending on bank processing and legal coordination
Common Pitfalls Foreign Buyers Should Avoid
Underestimating total costs: Many foreign buyers focus only on purchase price and miss ABSD, BSD, legal fees, and valuation shortfalls. Use Homejourney's cost calculator to determine your true all-in investment before making offers.
Skipping legal due diligence: Engaging a lawyer after exercising the OTP is too late. Conveyancing must begin within 24 hours of OTP signing to uncover issues while you can still negotiate or withdraw.
Ignoring LTV limits: Foreign buyers often assume they can borrow 90% like residents, then face cash shortfalls when banks approve only 75–80% LTV. Confirm your exact borrowing capacity with your bank before making offers.
Missing stamp duty deadlines: IRAS penalties for late payment are steep. Coordinate with your lawyer to ensure e-stamping is completed within 14 days of the S&P Agreement.
Failing to conduct final walkthroughs: Properties can deteriorate between offer and completion. Always inspect the property one week before completion to verify condition and agreed modifications.
Frequently Asked Questions
How long does the entire foreign property buying process take?
From initial financing application to key handover typically takes 8–12 weeks for straightforward transactions. This timeline includes IPA approval (3–5 days), property search and negotiation (2–4 weeks), legal due diligence (1–2 weeks), OTP exercise to completion (4–8 weeks), and bank processing. Complex situations or slower conveyancing may extend this to 14–16 weeks.
Can I use CPF to buy property as a foreigner?
No. Central Provident Fund (CPF) is available only to Singapore citizens and permanent residents. Foreign buyers must use cash or secure bank financing. However, if you later obtain PR status, you may be able to use CPF for future property purchases.
What happens if the property valuation is lower than my purchase price?
The bank lends only against the lower valuation. You must cover the difference in cash. For example, if you agreed to pay S$2 million but valuation is S$1.9 million, and your LTV is 75%, the bank lends S$1.425 million, requiring you to pay S$575,000 in cash. Always maintain cash reserves above your calculated down payment to cover this risk.
Can I negotiate the ABSD rate as a foreigner?
No. ABSD is a fixed 60% tax set by the Singapore government and applies uniformly to all foreign buyers. It cannot be negotiated, reduced, or avoided. Factor this into your budget from the outset.
