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

Foreigners can buy private condominiums and apartments in Singapore without restrictions, but landed properties require Singapore Land Authority (SLA) approval, and HDB flats are generally off-limits.[1]

The step-by-step property buying process for foreigners involves securing financing, obtaining an Option to Purchase (OTP), paying stamp duties like 60% ABSD in 2026, and completing legal conveyancing—all while navigating Loan-to-Value (LTV) limits of 50-70%.[1][2] Homejourney prioritizes your safety by verifying listings and providing transparent tools to guide you through this process securely.

Why This Process Matters for Foreign Buyers in 2026

Singapore's property market remains attractive for investors despite high ABSD rates of 60% for foreigners on residential purchases, unchanged through 2026.[2] This guide builds on our pillar content, Types of Properties Foreigners Can Buy in Singapore | Homejourney ">Types of Properties Foreigners Can Buy in Singapore, offering tactical steps for confident decisions.

Current market context shows resilient demand for condos in areas like Sentosa Cove, where foreigners seek premium investments. Homejourney's verified Property Search ">property search helps you shortlist options safely, ensuring transparency and user trust.

Step 1: Assess Eligibility and Budget

Start by confirming what you can buy: unrestricted condos and apartments, strata-landed in approved projects, or landed properties with SLA approval (e.g., Sentosa Cove foreigner purchases).[1] Use Homejourney's tools to calculate costs including Buyer's Stamp Duty (BSD) at progressive rates up to 6% and ABSD at 60%—for a S$2M condo, that's S$1.2M in ABSD alone.[2]

Insider tip: Factor in Total Debt Servicing Ratio (TDSR) at 55% of gross income and Mortgage Servicing Ratio (MSR) if applicable. Foreigners on Employment Passes face stricter LTV: up to 70% for first property if valued under S$1.5M, dropping to 50% otherwise.[1]

Actionable Budget Checklist

• Estimate purchase price + 60% ABSD + 1-6% BSD + 1% OTP fee.
• Add legal fees (S$3,000-S$5,000), valuation (S$500-S$1,500), and agent commission (1-2%).
• Check ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD Stamp Duty Calculator on Homejourney for precise figures.

Step 2: Secure In-Principle Approval (IPA) for Financing

Apply for IPA from banks before viewing properties—submit passport, work pass, 3-6 months' payslips, tax assessments, and bank statements.[2] IPAs are valid 30 days and confirm your max loan based on lower of purchase price or valuation.

Foreigners get lower LTV than locals; explore options via Homejourney's Bank Rates ">bank rates comparison. Real example: A S$10,000 monthly earner might secure S$1.5M loan on a S$2.5M condo after ABSD.

Step 3: Engage a Licensed Agent and Shortlist Properties

Hire a CEA-licensed agent experienced with foreigners for viewings. Use Homejourney's Projects Directory ">projects directory for verified condos, including buy Sentosa property options like Sentosa Cove.

For landed Sentosa foreign buys, confirm SLA approval first—Sentosa Cove remains a top Sentosa Cove investment for its luxury appeal and foreigner-friendly rules.[1]

Step 4: Negotiate and Secure Option to Purchase (OTP)

Agree on price, pay 1% option fee (e.g., S$20,000 on S$2M property) for 14-21 days exclusivity.[1][2] OTP is non-refundable if you back out but credits toward purchase if proceeding.

Tip: Negotiate inclusions like furniture; always get lawyer review before signing.

Step 5: Pay Stamp Duties and Conduct Due Diligence

Within 14 days of exercising OTP, pay BSD and ABSD to IRAS via e-stamping—late fees apply.[2] Engage conveyancing lawyer for title searches, encumbrance checks, and MCST records (e.g., maintenance arrears).

Timeline: 1-2 weeks for searches; red flags include unpaid taxes or disputes—abort if found.

Step 6: Finalize Mortgage, S&P Agreement, and Completion

Bank issues formal Letter of Offer post-valuation (1 week).[2] Sign Sale & Purchase (S&P) Agreement, pay 5% total deposit, then balance at completion (8-12 weeks total process).

Lawyer handles CPF (if PR), seller payout, and title transfer at SLA. Keys handover follows.

Financial Breakdown Table for S$2M Condo (Foreigner, 2026)

Assumes 50% LTV loan; excludes agent fees. Use Homejourney calculators for personalization.

Common Mistakes to Avoid

• Skipping IPA: Sellers reject unfinanced offers.
• Ignoring ABSD: Budget shock—always calculate first.[2]
• No lawyer pre-OTP: Misses title issues.
• Overlooking TDSR: Loan rejection mid-process.

Real example: A foreigner lost S$20K OTP fee in 2025 after valuation shortfall—get IPA early.

Post-Purchase: Maintenance and Next Steps

After keys, budget for upkeep; Homejourney's Aircon Services ">aircon services ensure smooth maintenance. For financing details, see Financing Options for Foreign Buyers in Singapore | Homejourney ">Financing Options for Foreign Buyers.

Disclaimer: This is general guidance; consult professionals for advice. Rates per URA/IRAS as of 2026—verify latest.

Frequently Asked Questions (FAQ)

Can foreigners buy landed Sentosa foreign properties?
Yes, with SLA approval, especially in Sentosa Cove for investments. See Sentosa Cove Property Guide for Foreign Buyers | Homejourney ">Sentosa Cove Property Guide.[1]

How long does the process take?
8-12 weeks from OTP to completion, plus 14 days for stamp duties.[2]

What's the ABSD rate for foreigners in 2026?
60% on purchase price/valuation, whichever higher.[2]

Do I need a lawyer?
Essential for due diligence and conveyancing.

Can I use CPF?
No, foreigners cannot; PRs may under conditions.

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 details—your trusted partner for secure Singapore property journeys.

References

1. Singapore Property Market Analysis 1 (2026)
2. Singapore Property Market Analysis 2 (2026)