The Step-by-Step Property Buying Process for Foreigners in Singapore follows a clear sequence: confirm eligibility, work out your budget and taxes (including ABSD), get in-principle loan approval, shortlist projects, negotiate and exercise the Option to Purchase (OTP), complete legal conveyancing, and finally complete inspection and handover.
This guide explains each step in detail for foreign buyers, including special cases such as the Liechtenstein ABSD exemption under the EFTA–Singapore Free Trade Agreement, so you can purchase safely and confidently with Homejourney.
How this guide fits into Homejourney’s foreign buyer pillar
This article is part of Homejourney’s comprehensive foreign buyer knowledge hub and sits under our main pillar, “Complete Singapore Property Guide for Foreign Buyers and PRs”. It zooms in specifically on the step-by-step process, and should be read together with:
- Types of Properties Foreigners Can Buy in Singapore | Homejourney Types of Properties Foreigners Can Buy in Singapore | Homejourney
- Financing Options for Foreign Buyers in Singapore | Homejourney Guide Financing Options for Foreign Buyers in Singapore | Homejourney Guide
- ABSD Stamp Duty Calculator & Guide 2025 | Homejourney ABSD Stamp Duty Calculator & Guide 2025 | Homejourney
- Liechtenstein Citizens’ Singapore Property Guide: EFTA ABSD Benefits | Homejourney Liechtenstein Citizens’ Singapore Property Guide: EFTA ABSD Benefits | Homejourn...
Step 1: Confirm eligibility & what foreigners can buy
Before viewing units, foreign buyers should confirm which properties they are eligible to purchase under Singapore’s Residential Property Act and related regulations.[4][1] In practice, most non‑PR foreigners buy private condominiums or fully privatised Executive Condominiums (ECs) that are at least 10 years old.[1][6]
Key rules for foreigners:
- Can usually buy: private apartments and condominiums, strata units in mixed‑use developments, and ECs that have passed the 10‑year mark.[1][6]
- Need approval: most landed properties (terrace, semi‑detached, bungalow, non‑condo cluster houses) on mainland Singapore, via the Singapore Land Authority’s Land Dealings Approval Unit (LDAU).[1][4][8]
- Special case: landed homes at Sentosa Cove are generally permissible for foreigners without LDAU approval, but still subject to the Residential Property Act framework.[4]
- Cannot buy: new HDB flats (BTO/SBF) or resale HDB flats as a foreigner; these are reserved primarily for Singapore Citizens and Permanent Residents under HDB rules.[1][3][6]
If you intend to buy a landed property or shophouse for residential use, build in several months for LDAU approval and do not commit to any purchase until your lawyer confirms that approval is realistic for your profile.
Step 2: Understand ABSD, BSD and Liechtenstein ABSD exemption
Foreigners pay two main stamp duties on residential property in Singapore:
- Buyer’s Stamp Duty (BSD): payable by all buyers, calculated on the purchase price or market value (whichever is higher), based on progressive tiers set by IRAS.
- Additional Buyer’s Stamp Duty (ABSD): payable on top of BSD. Since the April 2023 cooling measures, most foreigners pay 60% ABSD on any residential property purchase in Singapore.[1][5]
Liechtenstein ABSD exemption and EFTA Liechtenstein
Citizens and tax residents of certain countries with free trade agreements enjoy ABSD treatment similar to Singapore Citizens for their first residential property. This is where Liechtenstein property Singapore has become an important niche topic:
- Under the EFTA–Singapore Free Trade Agreement, qualifying Liechtenstein buyers may enjoy an effective Liechtenstein ABSD exemption or reduced ABSD for their first residential property, similar to other FTA partner nationals.
- To benefit, they must typically show proof of nationality and satisfy IRAS conditions; details can be complex, and treatment may evolve with policy updates.
- Because the EFTA Liechtenstein framework is technical and may change, foreign buyers from Liechtenstein should always confirm current ABSD treatment with IRAS or a Singapore conveyancing lawyer before signing any binding documents.
Homejourney’s dedicated guide for Liechtenstein nationals explains this in more depth: Liechtenstein Citizens’ Singapore Property Guide: EFTA ABSD Benefits | Homejourn... . For all other foreigners, use the ABSD guide and calculator to estimate total taxes: ABSD Stamp Duty Calculator & Guide 2025 | Homejourney .
Safety tip from local experience: In practice, the ABSD cash outlay is often the single largest "surprise" cost for foreign buyers. When I walk clients through deals in core central districts like Orchard, River Valley or Marina Bay, we always calculate ABSD and BSD upfront, before even shortlisting units, so no one wastes time on properties that are unrealistic once taxes are included.
Step 3: Work out total budget and financing (LTV, TDSR)
Once you know your likely ABSD, set a realistic budget. For foreigners, this is driven by three things: cash on hand, bank loan limit, and ongoing affordability under MAS rules.
Key Singapore rules:
- Loan-to-Value (LTV) limits: MAS sets maximum LTV ratios for housing loans. For most foreign buyers using a bank loan, the maximum is typically up to 75% of the purchase price or valuation (whichever is lower), assuming you do not have existing housing loans and meet credit criteria (MAS notices and bank policies apply).
- Total Debt Servicing Ratio (TDSR): Your total monthly debt obligations (including the new mortgage) must not exceed 55% of your gross monthly income, based on MAS’ TDSR framework.[5]
- CPF usage: Non‑PR foreigners generally cannot use Singapore CPF for property purchases, so your downpayment and duties must be funded in cash or overseas assets.
Use Homejourney’s bank and mortgage rate tools to compare indicative packages and model monthly instalments: Bank Rates and Mortgage Rates . For more detailed financing structures, including overseas income or corporate buying, refer to: Financing Options for Foreign Buyers in Singapore | Homejourney .
Local insight: In prime districts (D9, D10, D1), banks sometimes use more conservative valuations than the asking price. I’ve seen buyers of riverfront condos near Great World MRT need to top up an extra 3–5% in cash when valuations came in slightly lower, so always include a buffer of at least 5–10% above your basic downpayment calculations.
Step 4: Shortlist projects and conduct due diligence
With budget and eligibility clear, you can shortlist potential projects. Homejourney’s projects directory and property search help you verify facts and avoid misrepresentation, which is especially important if you are overseas.
- Use Projects Directory and Projects to check launch dates, developer track record, unit mix, and historical transaction prices (based on URA data).
- Use Property Search or Property Search to find active listings that match your budget, district, and preferred MRT access.
- Cross‑check project information against URA’s official records and caveats where possible (URA provides public data on private residential transactions).[1]
When I bring overseas clients to viewings in areas like Tanjong Pagar or Newton, small details matter: walking the actual path from the condo to the nearest MRT (often 6–8 minutes in real life vs a claimed 3–4 minutes), checking traffic noise during peak hours on Scotts Road or River Valley Road, and visiting at night to gauge human traffic around nearby malls or bars.
Safety and fraud‑prevention checks:
- Verify that the person showing the unit is a licensed salesperson under CEA’s Public Register.
- For new launches, confirm the marketing agency and developer against URA’s approved project list.
- Never transfer booking fees to personal accounts; developers’ and law firms’ clients’ accounts should be clearly stated in official documents.
Step 5: Make an offer and secure the Option to Purchase (OTP)
Once you’ve identified a property, the next step in the Step-by-Step Property Buying Process for Foreigners is to negotiate and secure an Option to Purchase (OTP)
