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

For foreigners, the step-by-step property buying process in Singapore typically runs from setting your budget and eligibility, to shortlisting projects, doing due diligence, securing financing, exercising the Option to Purchase (OTP), completing legal conveyancing, and finally inspecting and taking possession of your home.

What makes Singapore different is the strict regulatory framework (ABSD, LTV limits, TDSR), strong consumer protection, and clear foreign ownership rules, which Homejourney helps you navigate safely with verified data and structured checklists.

This guide is a focused follow‑up to our main pillar on buying property in Singapore, and zooms in specifically on the Step-by-Step Property Buying Process for Foreigners so you can move confidently from interest to completion while minimising risk.

1. Can Foreigners Buy Property in Singapore? (Know Your Starting Point)

Before any viewing or offer, foreign buyers must understand what they are legally allowed to buy and the extra taxes they face.

Under Singapore’s Residential Property Act, most foreigners can freely buy:

- Private condominiums and apartments[1][6]
- Fully privatised Executive Condominiums (ECs) that are more than 10 years old[1][3][6]
- Selected commercial properties and mixed‑use units (commercial parts generally unrestricted)[7]

You usually cannot buy:

- New HDB flats (BTO / SBF) and most resale HDB flats[1][3]
- ECs that have not reached 10 years of age[1][6]

For landed properties (terrace, semi‑D, bungalow, non‑condo strata‑landed), you need special approval from the Land Dealings Approval Unit (LDAU) of the Singapore Land Authority, and approval is generally granted only if you have made “exceptional economic contribution” to Singapore[1][3][8]. The main exception is Sentosa Cove, where landed purchases by foreigners are possible but subject to strict conditions (e.g. usually owner‑occupation)[3].

Insider tip: Most foreign buyers I’ve worked with in areas like River Valley, Orchard and East Coast focus on private condos first – these are the most straightforward, have strong rental demand, and avoid the complex landed approval process.

2. Step 1 – Define Budget, Taxes and Financing (Before Any Viewing)

In Singapore, you should always calculate total cost before falling in love with a unit. For foreigners, this means adding:

Property price
Buyer’s Stamp Duty (BSD)
Additional Buyer’s Stamp Duty (ABSD)
Legal, valuation and agent fees
Renovation and furnishing

2.1 BSD and ABSD for Foreigners (2025)

All buyers pay Buyer’s Stamp Duty, which is tiered by price and applies to the higher of purchase price or market value (latest schedule on IRAS, not reproduced in full here). Foreigners must also pay ABSD on top of BSD. Following the April 2023 cooling measures, foreigners generally pay 60% ABSD on any residential purchase[1][5][6]. Certain nationalities with Free Trade Agreements (e.g. some US nationals) may get different treatment, but this is highly specific and must be checked directly with IRAS or a conveyancing lawyer[5].

To estimate your total tax bill safely, use Homejourney’s dedicated resource:
- ABSD Stamp Duty Calculator & Guide 2025 ABSD Stamp Duty Calculator & Guide 2025 | Homejourney or ABSD Stamp Duty Calculator and Guide 2025 | Homejourney Singapore

Disclaimer: ABSD rules and rates can change with new cooling measures; always verify with IRAS or your lawyer at the time of purchase. This article is for general guidance only and is not tax advice.

2.2 Loan-to-Value (LTV), TDSR and Minimum Cash

For bank loans, foreign buyers are subject to the same LTV and Total Debt Servicing Ratio (TDSR) rules set by MAS. Broadly:

LTV limit: Up to 75% for your first housing loan if your loan tenure and age fall within MAS guidelines, with at least 5% in cash and the rest cash/CPF. For subsequent loans, LTV typically drops (e.g. 45% or lower). Always confirm latest limits with the bank/MAS.
TDSR: Your total monthly debt obligations (including the new mortgage) generally cannot exceed 55% of your gross monthly income (as at recent MAS guidelines).

Foreign buyers usually rely fully on cash for downpayment and instalments as CPF usage is generally limited to CPF members. Where CPF is available (e.g. PRs), CPF Board rules on valuation limits and withdrawal caps apply and should be checked with CPF directly.

Use Homejourney’s bank rates comparison to check latest mortgage packages safely: Bank Rates or Mortgage Rates . For foreigners, we also have a focused guide: Financing Options for Foreign Buyers in Singapore Financing Options for Foreign Buyers in Singapore | Homejourney Guide and Financing Options for Taiwanese Citizens Buying Singapore Property | Homejourney... .

3. Step 2 – Shortlist Areas and Projects (On‑the‑Ground Perspective)

Once you know your safe budget, narrow down locations that match your lifestyle or investment goals:

CBD & Core Central (e.g. Marina Bay, Orchard, River Valley) – Higher prices, strong rental demand from expats working in Raffles Place/Marina Bay. Good if you want convenience and prestige.
City fringe (e.g. Tiong Bahru, Redhill, Kallang, Paya Lebar) – Often a balance of price and convenience; areas like Tiong Bahru have strong heritage charm, trendy cafes and excellent city access (about 10 minutes’ drive to CBD).
East Coast / Katong / Marine Parade – Popular with families, close to East Coast Park. Many locals prefer condos here for lifestyle (jogging and cycling along the beach, hawker centres like East Coast Lagoon).
Suburban hubs (Jurong, Punggol, Woodlands) – Lower entry price, often favoured for long‑term upside as infrastructure (e.g. Jurong Lake District, Punggol Digital District) develops. Check URA Master Plan for upcoming developments.

Use Homejourney’s property search to safely filter by district, MRT, price and tenure: Property Search or Property Search . For deeper data, refer to our projects directory with transaction history and project analysis: Projects or Projects Directory .

Insider tip: If you work in Raffles Place or Marina Bay Financial Centre, condos around Tanjong Pagar and Shenton Way can be within a 5–10 minute walk from your office, saving daily commuting time and taxi costs, especially during rainy evenings when taxis can be scarce.

4. Step 3 – Due Diligence for Foreigners (Property Check Before You Commit)

Foreigners should perform structured due diligence to avoid costly surprises. Homejourney strongly recommends a buying checklist for foreigners before you pay any deposit.

4.1 Legal & Regulatory Due Diligence

Confirm foreign ownership eligibility of the specific property type (condo vs landed, EC age) using SLA and URA guidelines[1][3][6].
Check for any restrictions on use (e.g. covenants, URA zoning, short‑term rental bans – URA currently restricts residential rentals below 3 months in most cases).
Verify title, encumbrances and existing caveats through your conveyancing lawyer.
Estimate BSD and ABSD precisely, then run through with your lawyer or trusted tax adviser.

For a structured approach, use our dedicated guide: Foreign Buyer Property Due Diligence Checklist Singapore Foreign Buyer Property Due Diligence Checklist Singapore | Homejourney .

4.2 Physical & Condo Inspection

A thorough condo inspection is critical, especially for older units in areas like Novena, River Valley or East Coast where properties may be 20–30 years old. Your property check as a foreign buyer should include: