Step-by-Step Property Buying Process for Foreigners in Singapore
Foreigners can buy condominiums and certain private properties in Singapore without prior approval, but must follow a structured process involving eligibility checks, financing pre-approval, Option to Purchase (OTP), legal due diligence, stamp duties, and completion.
This step-by-step property buying process for foreigners ensures compliance with 2026 regulations like 60% ABSD while minimizing risks. Homejourney prioritizes your safety by verifying property details and guiding you through transparent transactions. This cluster article builds on our Homejourney's 2026 Guide: Foreigners Buying Property in Singapore ">Homejourney's 2026 Guide: Foreigners Buying Property in Singapore, offering tactical steps for confident decisions.[1][2][3]
Eligibility: What Foreigners Can Buy in 2026
Foreign buyers in Singapore—non-citizens and non-PRs—can purchase condominiums, apartments, strata-landed houses in approved developments, short-term leasehold estates (up to 7 years), and Sentosa Cove landed properties without prior approval.[3][2]
Landed properties like bungalows, semi-detached houses, or terrace houses require case-by-case approval from the Singapore Land Authority's Land Dealings Approval Unit (LDAU), often granted only for exceptional economic contributions.[1][2]
Foreigner buy property Singapore restrictions protect local housing needs, so HDB flats are off-limits. Check property types via Types of Properties Foreigners Can Buy in Singapore | Homejourney ">Types of Properties Foreigners Can Buy in Singapore | Homejourney and use Homejourney's Property Search ">property search for verified listings.[2][3]
Step 1: Assess Affordability and Secure In-Principle Approval (IPA)
Start by calculating costs: Buyer's Stamp Duty (BSD) at progressive rates (up to 6% for properties over S$1.5M) plus 60% Additional Buyer's Stamp Duty (ABSD) on the purchase price or valuation, whichever is higher. For a S$2M condo, ABSD alone is S$1.2M, payable within 14 days of exercising the OTP.[1][3]
- Gather documents: passport, work pass/visa, employment contract, 3-6 months' payslips, bank statements, IRAS Notices of Assessment (or equivalent), and overseas credit report.[1]
- Apply for IPA from banks via Bank Rates ">Homejourney's mortgage rates page. IPAs, valid 30 days, confirm Loan-to-Value (LTV) limits (up to 70% for foreigners) and Total Debt Servicing Ratio (TDSR) compliance.[1][2]
- Expect 3-5 business days for approval; salaried expats qualify faster.[1]
Insider tip: Banks like DBS or UOB often process IPAs quickest for high-income foreigners (S$20K+ monthly). Homejourney verifies lender credibility for your trust.[1]
Step 2: Shortlist Properties and Negotiate Option to Purchase (OTP)
Use Homejourney's Projects Directory ">projects directory to shortlist condos in prime areas like Orchard or Marina Bay. Negotiate price based on recent transactions—e.g., average psf S$2,500-S$3,500 in 2026.[1]
The seller issues an OTP for 14-21 days exclusivity. Pay 1% option fee (e.g., S$20K on S$2M property) via cashier's order—non-refundable if you back out, but credited if proceeding.[1]
Buy condo foreigner tip: Always condition OTP on satisfactory valuation and due diligence to protect your deposit.[1]
Step 3: Engage Conveyancing Lawyer and Conduct Due Diligence
Within 24 hours of OTP, appoint a lawyer (S$2K-S$5K fees). They perform title searches, check Management Corporation Strata Title (MCST) records for arrears/disputes, and verify no caveats or violations.[1]
- Review draft Sale & Purchase (S&P) Agreement.
- Flag red flags like unpaid taxes or lease issues.
- Get preliminary report in 2-3 days.[1]
Homejourney recommends lawyer referrals focused on foreigner transactions for seamless safety.[1]
Step 4: Exercise OTP and Pay Stamp Duties
Before expiry, exercise OTP by paying balance deposit (total 5% of price). Lawyer handles e-stamping for BSD/ABSD via IRAS—due 14 days post-exercise, penalties for delays.[1][3]
Use Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD Stamp Duty Calculator & Guide 2026 for precise calculations. FTA citizens may qualify for ABSD remission—see FTA ABSD Remission Singapore: Eligibility Rules & Guide | Homejourney ">FTA ABSD Remission Guide.[1]
Step 5: Finalize Financing and Complete Transaction
Submit exercised OTP and S&P to bank for formal valuation (1 week). If valuation < price, top up cash. Sign Letter of Offer, then mortgage docs.[1]
Completion: 8-12 weeks post-OTP. Pay balance (cash/loan), collect keys. Total timeline: 3-4 months.[1]
Explore Financing Options for Foreign Buyers in Singapore 2026 | Homejourney ">Financing Options for Foreign Buyers 2026 on Homejourney for bank comparisons.[2]
Financial Breakdown and Common Pitfalls
S$2M Condo Example (2026):
| Item | Amount |
|---|---|
| ABSD (60%) | S$1.2M |
| BSD (~4% avg) | S$80K |
| Legal/OTP Fees | S$30K-S$50K |
| Total Upfront (excl. deposit) | ~S$1.35M |
Avoid mistakes: Skipping IPA (sellers reject offers), ignoring valuation shortfalls, or late ABSD (17% p.a. penalty). Real example: A 2025 expat lost S$50K option fee due to poor due diligence on MCST disputes.[1]
Disclaimer: This is general guidance; consult professionals for personalized advice. Rates per URA/IRAS 2026.[1][3]
Post-Purchase: Maintenance and Next Steps
After keys, budget for upkeep—e.g., aircon servicing via Aircon Services ">Homejourney's aircon services. Monitor market via Straits Times Housing News ">Straits Times housing.[1]
FAQ: Foreigner Property Buying in Singapore
What is the step-by-step property buying process for foreigners in Singapore?
1. IPA, 2. OTP, 3. Lawyer due diligence, 4. Exercise OTP/pay duties, 5. Finance/valuation, 6. Completion.[1]
How much ABSD do foreign buyers pay in 2026?
60% on residential purchases, e.g., S$1.2M on S$2M condo.[1][3]
Can foreigners get mortgages in Singapore?
Yes, up to 70% LTV from local banks with IPA.[1][2]
Timeline for buying condo as foreigner?
3-4 months from offer to keys.[1]
Singapore property foreigner guide: Need a lawyer?
Essential for due diligence and stamping.[1]
Ready to start? Use Homejourney's Property Search ">property search for safe, verified options. Link back to our pillar for full details—your trusted partner for secure Singapore property journeys.
