Step-by-Step Property Buying Process for Foreigners in Singapore
The step-by-step property buying process for foreigners in Singapore spans 8-12 weeks, starting with eligibility verification, securing an Option to Purchase (OTP), paying 60% Additional Buyer's Stamp Duty (ABSD), and completing legal transfer through conveyancing lawyers and the Singapore Land Authority (SLA).[1][2] Foreigners can freely purchase private condominiums and Sentosa Cove landed properties but face restrictions on HDB flats and most landed homes without SLA approval.[1][3]
At Homejourney, we prioritize your safety by verifying every step of this process, ensuring transparent transactions in a trusted environment. This comprehensive guide breaks down each stage so you can navigate Singapore's property market with confidence, whether you're a Korean buyer Singapore, investor from another country, or South Korea citizen exploring property opportunities.
Step 1: Confirm Your Eligibility and Identify Property Types (1-2 weeks)
Before you begin your property search, understanding what you can legally purchase is critical. Foreigners cannot buy new HDB flats or most landed properties without approval, but can freely purchase private condominiums, apartments, privatized Executive Condominiums (ECs) after 10 years, and Sentosa Cove landed homes.[2][3]
For HDB resale properties, only the Non-Citizen Spouse Scheme applies if you're married to a Singapore Citizen, with the spouse as the essential occupier and a valid Work or Visit Pass required.[1][2] This restriction exists because HDB flats are subsidized public housing intended primarily for citizens and permanent residents.
If you're interested in landed properties outside Sentosa Cove, you'll need to apply for SLA approval through the Land Dealings Approval Unit (LDAU). As a foreigner, approval is rarely granted unless you meet exceptional criteria. Use Homejourney's property search to filter eligible listings and avoid wasting time on properties you cannot legally purchase.[1]
Step 2: Calculate Your Budget and Secure Financing (1 week)
Understanding the true cost of property ownership is essential. Beyond the purchase price, you'll need to factor in multiple expenses: Basic Stamp Duty (BSD) up to 6%, the substantial 60% ABSD on your first residential property, and legal fees ranging from S$2,000-S$3,500.[3][4] For a S$2 million condominium, ABSD alone totals S$1.2 million—a significant consideration.
Foreigners typically qualify for loans up to 50-70% Loan-to-Value (LTV), subject to Debt Service Ratio (TDSR) checks and valid Employment Pass (EP) or S Pass documentation.[2][4] Unlike Singapore citizens who can leverage CPF, you'll need to pay your entire downpayment in cash. This means for a S$2 million property with 60% LTV financing, you'll need approximately S$800,000 in liquid funds upfront.
Secure an In-Principle Approval (IPA) from banks before making offers. Compare financing options on Homejourney's bank rates page to find the most competitive terms for foreign buyers, as interest rates and LTV limits vary significantly between institutions.[2]
Step 3: Search and View Properties (1-3 weeks)
With your eligibility confirmed and financing secured, you can begin viewing properties. Focus on condominiums in prime locations like Orchard, Marina Bay, or Sentosa Cove if you're seeking premium properties, or explore emerging areas for better value. Visit multiple properties to understand pricing, amenities, and community vibrancy.
During viewings, assess practical details: proximity to MRT stations, nearby schools and shopping centers, building age and maintenance standards, and condo facilities like pools, gyms, and concierge services. Request detailed floor plans and check the property's remaining lease period (critical for older properties).
Use Homejourney's property search to access verified listings with complete information, ensuring you're viewing properties that meet your eligibility requirements and investment criteria.
Step 4: Make an Offer and Exercise the Option (Day 0)
Once you've identified your target property, your agent will submit an offer. Upon acceptance, you'll receive the Option to Purchase (OTP) and pay an option fee of 1-5% of the purchase price in cash.[1][5] This fee secures your exclusive right to purchase for 14 days—during this period, the seller cannot accept other offers.
The OTP period is crucial for due diligence. You can negotiate inclusions like aircon servicing, furniture, or parking lots. Your lawyer will review the OTP terms and advise on any concerns. If you decide not to proceed within 14 days, you forfeit your option fee but have no further obligations.
Step 5: Pay Stamp Duties Within 14 Days
After exercising your option, you must pay stamp duties to the Inland Revenue Authority of Singapore (IRAS) within 14 days. This includes Basic Stamp Duty (BSD) and the 60% ABSD on your first property.[2][3] For a S$2 million condo, you'd pay approximately S$120,000 in ABSD alone. These duties are non-refundable, so ensure your financing is confirmed before this deadline.
Your conveyancing lawyer will calculate exact amounts and manage payment to IRAS. Failure to pay within 14 days may result in penalties or loss of your purchase rights.
Step 6: Sign the Sale & Purchase Agreement (2-3 weeks post-OTP)
Your lawyer will prepare and review the Sale & Purchase (S&P) Agreement, which outlines all transaction terms, conditions, and timelines. This is a legally binding contract, so review it carefully with your lawyer's guidance. Common clauses include completion timelines, defects liability periods, and conditions precedent (such as securing financing).
You'll pay an additional downpayment of 5-25% of the purchase price at this stage (no CPF allowed for foreigners).[4] Combined with your initial option fee, this represents your accumulated equity in the property.
Step 7: Complete Financing and Valuation (4-6 weeks)
Submit your complete mortgage application to your bank with all required documentation: passport, visa/pass details, proof of income, employment letters, and bank statements. The bank will conduct a property valuation to ensure the loan amount doesn't exceed their LTV limits.[2]
During this period, the bank performs TDSR checks to confirm you can service the debt based on your income. For foreign buyers, income verification is stricter—you may need to provide 2-3 years of tax returns or employment contracts. Once approved, the bank will issue a formal loan offer.
Step 8: Completion and Key Collection (8-12 weeks post-OTP)
On completion day, your lawyer coordinates the simultaneous exchange: you transfer the remaining funds (typically 20-25% of purchase price plus all fees), and the seller transfers the property keys and ownership documents. The bank disburses your loan directly to the seller's lawyer.[2][3]
Your lawyer then lodges the transfer documents with the Singapore Land Authority (SLA) to register you as the legal owner. This registration typically takes 1-2 weeks. Once registered, you receive the Indefeasible Title, confirming your ownership rights.
The entire process from OTP to key collection typically takes 8-12 weeks for private properties. Plan your moving timeline accordingly, and consider engaging Homejourney's aircon servicing or other post-purchase services to prepare your new home.
Key Financial Considerations for Foreign Buyers
Understanding the complete cost structure is essential for accurate budgeting. Beyond the purchase price, account for: BSD (up to 6% of purchase price), ABSD (60% of purchase price for first property), legal fees (S$2,000-S$3,500), valuation fees (typically S$300-S$800), and mortgage insurance if your LTV exceeds 60%.[3][4]
For a S$2 million property, total costs including ABSD could exceed S$1.4 million before accounting for the actual mortgage. This is why securing accurate financing pre-approval is critical—it prevents you from making offers on properties you cannot afford.
Unlike Singapore citizens and permanent residents who can use CPF for downpayments, all foreign buyer funds must come from personal savings or external financing. This significantly impacts your purchasing power and liquidity planning.
Common Mistakes Foreign Buyers Make
Mistake 1: Not Confirming Eligibility Before Searching Many foreign buyers fall in love with a property only to discover they cannot legally purchase it. Always confirm eligibility with URA guidelines before investing time in viewings.
Mistake 2: Underestimating Total Costs Focusing only on purchase price while ignoring ABSD, BSD, and legal fees leads to financing shortfalls. Budget for all costs upfront.
