Step-by-Step Property Buying Process for Foreigners | Homejourney

Step-by-Step Property Buying Process for Foreigners in Singapore

The step-by-step property buying process for foreigners in Singapore takes 8-12 weeks from Option to Purchase (OTP) to key collection, covering eligibility checks, financing pre-approval, OTP exercise, 60% ABSD payment, and legal completion. Homejourney prioritizes your safety by verifying listings and providing transparent tools for confident decisions.[1][2][3]

This cluster article details the tactical steps for foreign buyers, building on our pillar guide to Singapore property ownership. Whether you're a Korean buyer Singapore or South Korea citizen property investor, follow these actions to comply with 2026 regulations from URA and SLA.[1][3]

Step 1: Confirm Eligibility and Property Types

Start by verifying what you can buy without approval: condominiums, apartments, strata-landed in approved developments, short-term leasehold (up to 7 years), and Sentosa Cove landed properties. HDB resale flats require marriage to a Singapore Citizen; BTO HDBs are prohibited for foreigners.[1][3][4][5]

Actionable tip: Use Homejourney's Property Search ">property search to filter eligible condos only. For Korean investor guide, check Korean Citizens Buying Property in Singapore: Homejourney Guide ">Korean Citizens Buying Property in Singapore for nationality-specific rules.[3]

Landed properties outside Sentosa Cove need SLA LDAU approval, assessed case-by-case (e.g., 5+ years PR status boosts chances).[4][8]

Insider Tip for Foreign Buyers

Popular foreigner-friendly condos like The Sail @ Marina Bay or One Altitude Residences offer sea views and MRT access (5-min walk from Promenade MRT Exit A). Always cross-check URA Master Plan zoning via official portal.[1]

Step 2: Assess Budget, ABSD, and Total Costs

Calculate total outlay: purchase price + BSD (1-6% tiered) + 60% ABSD for first residential purchase + legal fees (S$2,000-3,500) + valuation. Example: S$1.5M condo incurs ~S$900K ABSD.[1][2][3]

Decision framework:

Budget S$1-2M: Core CBD condos (e.g., 700 sq ft, S$1.8M avg).[1]
Budget S$3M+: Sentosa Cove (approval needed).[4]
Use Homejourney's ABSD Stamp Duty Calculator for precise 2026 rates.[3]

Hidden costs: 1% OTP fee, 4% exercise fee, maintenance (~S$400/month).[2]

Step 3: Secure Financing Pre-Approval

Foreigners get up to 75% LTV (vs 80% for locals), capped by TDSR (60% debt-to-income). No CPF usage.[1][2]

Get In-Principle Approval (IPA) from banks like DBS or UOB (1-2 weeks). Compare rates via Homejourney's Bank Rates ">bank rates or Financing Options for Foreign Buyers in Singapore 2026 ">Financing Options for Foreign Buyers 2026[2][5]

Pro tip: Transfer funds via low-fee services; declare sources to MAS for anti-money laundering compliance.[6]

Step 4: Find and Secure the Property with OTP

Search verified listings on Homejourney's Projects Directory ">projects directory. View 5-10 units; negotiate price (5-10% below asking common).[1]

Pay 1% option fee for 14-21 day OTP. Review conditions: subject to valuation, finance.[2][4]

Engage CEA-registered agent and conveyancing lawyer early (S$2,500 fee).[4]

Step 5: Due Diligence, Exercise OTP, and Pay Duties

Lawyer conducts title search, caveats check (1 week). If clear, exercise OTP with 4% fee (total 5% deposit).[1][3]

Pay BSD + 60% ABSD within 14 days via IRAS e-Stamping. SLA registers temporarily.[2]

Submit documents: passport, IPA, funds proof.
Timeline: 1-2 weeks post-OTP.

Read Types of Properties Foreigners Can Buy in Singapore | Homejourney ">Types of Properties Foreigners Can Buy for details.[3]

Step 6: Finalize Financing and Completion

Bank valuation (1 week): if below price, top-up cash. Sign Letter of Offer, then mortgage docs.[1]

Completion: 8-12 weeks post-OTP. Pay balance (cash/loan), lawyer transfers title at SLA, collect keys. Inspect for defects.[2][4]

Total timeline: 3-4 months. Post-purchase: budget for aircon servicing via Aircon Services ">Homejourney aircon services.[1]

Common Mistakes to Avoid

Mistake 1: Skipping eligibility check – leads to wasted viewings.[3]

Mistake 2: Underestimating ABSD – 60% shock; always calculate first.[2]

Mistake 3: No IPA – kills deals post-OTP.[4]

Red flag: Sellers rushing OTP without due diligence. Homejourney verifies sellers for safety.[1]

Financial Breakdown Table

For S$1.5M Condo (Foreigner, 75% Loan):

Item	Amount (S$)
Purchase Price	1,500,000
ABSD (60%)	900,000
BSD (~4% avg)	60,000
OTP Fees (5%)	75,000
Legal/Other	5,000
Total Cash Needed	1,040,000

[1][2] Disclaimer: Not financial advice; consult professionals. Rates as of 2026.[3]

FAQ: Step-by-Step Property Buying Process for Foreigners

What is the step-by-step property buying process for foreigners in Singapore?
1. Confirm eligibility. 2. Budget/ABSD calc. 3. IPA financing. 4. OTP. 5. Due diligence/duties. 6. Completion (8-12 weeks).[1][2]

Can Korean buyers purchase landed property?
Only Sentosa Cove without approval; others need SLA LDAU. See Korean Citizens Buying Property in Singapore: Homejourney Guide ">Korean investor guide.[3][8]

What is ABSD for foreigners in 2026?
60% on first residential purchase. Use Homejourney calculator.[1][3]

Timeline for foreigners?
3-4 months total; 8-12 weeks post-OTP.[2][4]

Do foreigners need approval for condos?
No, direct purchase allowed.[1][5]

Ready to start? Search safe, verified properties on Homejourney's Property Search ">property search and link back to our pillar on Singapore Property Buying Essentials. Homejourney ensures transparency and user safety at every step.