Step‑by‑Step Property Buying Process for Foreigners | Homejourney 2026

The step-by-step property buying process for foreigners in Singapore typically takes 8–14 weeks from offer to key collection and involves checking eligibility, calculating 60% ABSD, securing financing, obtaining an Option to Purchase (OTP), exercising it within the deadline, paying stamp duties on time, and completing legal transfer via conveyancing lawyers and the Singapore Land Authority (SLA).[1][2][7]

This cluster guide zooms into that process in detail, supporting Homejourney’s main foreign buyer pillar guide Step-by-Step Property Buying Process for Foreigners | Homejourney 2026 . If you are an American, European, or Asian investor trying to understand why US buyers dominate parts of the market and how the exact timeline works, this article gives you a practical, safety-first roadmap tailored to 2026 rules.

1. Snapshot: How the Foreign Buyer Process Works in 2026

For fast reference, here is the process in one view:

Confirm eligibility and property type you can buy.
Estimate all-in budget including 60% ABSD and legal fees.
Get financing pre-approval from banks via Homejourney’s Mortgage Rates and Bank Rates .
Shortlist verified projects on Homejourney’s Property Search and Projects Directory .
Negotiate price and secure an Option to Purchase (OTP).
Engage a conveyancing lawyer for due diligence and contract review.
Exercise OTP, pay BSD + 60% ABSD within 14 days.[1][4]
Complete loan documentation, legal completion, and key collection.

Every step below is written from the perspective of someone who has walked clients through River Valley, Holland Village, Novena, and East Coast viewings—areas where American top buyer Singapore activity is especially visible in 2024–2026.

2. Step 1 – Confirm Eligibility & Property Types

Singapore is very strict about what foreigners can and cannot buy. Before you fall in love with a black-and-white house off Bukit Timah Road, check the rules.

2.1 What foreigners can usually buy

Private condominiums and apartments – no SLA approval needed.[1][3][5]
Privatised Executive Condominiums (ECs) – only after 10 years from TOP (fully privatised).[3]
Landed homes on Sentosa Cove – foreigners allowed without special case-by-case approval.[1][3][5]

Other landed properties (e.g. terrace, semi-D, bungalow on mainland) are classified as restricted residential property. You must apply to SLA under the Residential Property Act and approvals are rare unless you demonstrate exceptional economic contribution.[3][7]

Foreigners cannot buy HDB flats directly, unless you are married to a Singapore Citizen and structuring under HDB’s rules, which are explained in our property types guide Types of Properties Foreigners Can Buy in Singapore | Homejourney .

2.2 Why this matters for Americans and other foreign investors

The USA Singapore property trend since 2023 shows many high-income tech and finance professionals choosing Districts 9, 10, and 11 for their first purchase because they want walkability to Orchard MRT or Stevens MRT and international schools at Bukit Timah.[1] For these buyers, private condos are the realistic and fastest route to ownership.

For more context on why Americans buy and how US buyers dominate certain prime projects, read Homejourney’s analysis Why Americans Top Singapore’s Foreign Buyer List: 2026 Homejourney Analysis .

3. Step 2 – Calculate All-In Budget (Including 60% ABSD)

Since April 2023, ABSD for foreigners is 60% of the purchase price or market value, whichever is higher, unchanged going into 2026.[1][4][5] This is in addition to Buyer’s Stamp Duty (BSD) for all buyers.

3.1 Example: S$2 million condo in River Valley

Assume you are an American citizen buying a two-bedroom condo near Great World MRT for S$2,000,000:

Purchase price: S$2,000,000
BSD: tiered; roughly S$69,600 on S$2M under current IRAS tables (check latest rates with IRAS/your lawyer).
ABSD (foreigners): 60% × 2,000,000 = S$1,200,000.[1][4][5]
Legal & conveyancing: typically S$3,000–S$5,000 + GST for a straightforward private purchase.

Total upfront taxes alone are around S$1.27 million, payable within 14 days of exercising the OTP or signing the Sale & Purchase Agreement for new launches.[1][4] Because foreigners cannot use CPF for housing, everything comes from cash.

3.2 Loan-to-Value (LTV), TDSR and cash requirements

Most foreign buyers face more conservative LTV outcomes of about 50–70%, depending on income, profile, and bank policy.[1][4] MAS’ Total Debt Servicing Ratio (TDSR) caps your total monthly debt obligations at 55% of gross monthly income (rate subject to MAS updates), including overseas loans. For non-residents with foreign currency income, banks may apply haircuts.

For the same S$2M unit with 60% LTV:

Bank loan: S$1,200,000
Cash downpayment: S$800,000
BSD + ABSD: about S$1,269,600 (cash)

Total cash needed upfront: just over S$2 million, excluding renovation and furniture. Use Homejourney’s financing resources and partner banks via Mortgage Rates and Bank Rates to model scenarios safely.

Disclaimer: All figures are illustrative. Stamp duty rates and LTV rules can change; always confirm with IRAS, MAS, or a licensed adviser before committing.

4. Step 3 – Secure Financing Pre-Approval

Before you view properties seriously, obtain an In-Principle Approval (IPA) from one or more banks. This is standard practice in Singapore and often requested by sellers’ agents.[4]

4.1 Typical documents foreign buyers need

Passport and current visa / work pass (EP, S Pass, or PR card if applicable).[4]
Latest 3–6 months’ payslips and bank statements.[4]
Latest 2 years’ tax assessments (IRAS or home-country tax authority).[4]
Overseas credit report if most borrowings are outside Singapore.[4]
Proof of funds for downpayment and ABSD (bank statements).

Banks typically issue an IPA within 3–5 working days for straightforward salaried profiles. For self-employed investors, expect more detailed documentation and slightly longer processing.[4]

4.2 Insiders’ tip: time your IPA with viewings

In central areas like Orchard, River Valley, and Tanjong Pagar, sought-after two-bedders can receive multiple offers in the same week. If you view without an IPA letter in hand, sellers may accept another buyer who can show financing readiness. Align your Homejourney Property Search shortlist with your IPA validity window (typically 30 days) so you can move quickly but safely.

5. Step 4 – Shortlist Projects and Conduct Ground Research

Use Homejourney’s Projects Directory to compare projects by age, tenure, MRT access, and transaction history. Then verify what you see online by walking the neighbourhood at different times of day.

5.1 Local-style on-the-ground checks

Transport: From Great World condo clusters, it is about a 5–8 minute sheltered walk to Great World MRT (Thomson-East Coast Line) depending on your block. Check whether the path is fully sheltered—very relevant in monsoon season.
Noise: Around Tanjong Pagar and Shenton Way, visit at night to gauge bar noise and truck traffic from port-adjacent roads.
Daily amenities: In Novena, locals value direct underground links from condos to malls like Velocity and Square 2, especially during heavy rain and midday heat.

Cross-check recent price trends and rental yields using Homejourney’s market data tools under Projects . For a deeper dive into investment viability, combine this with macro commentary from Business Times Property or Straits Times Housing News .

6. Step 5 – Negotiate and Secure an Option to Purchase (OTP)

The Option to Purchase (OTP) is a legal document giving you exclusive rights to buy the property for a fixed price within a set period, usually 14–21 days for private resale.[1][4][6]

6.1 Typical OTP terms in Singapore

Option fee: commonly 1% of purchase price for resale private property.[4]
Option period: usually 14 days; can be negotiated to 21 days for foreign buyers needing extra time for remittances.
Balance deposit: typically another 4% upon exercising, bringing total to 5%.

The option fee is generally non-refundable if you choose not to proceed but is credited toward the purchase price if you exercise. Never transfer option money to an individual’s personal account—use the seller’s lawyer’s stakeholder account or follow your lawyer’s instructions to protect yourself.

6.2 Safety-first negotiation tips

Request recent MCST minutes through your lawyer to check for upcoming major repairs (e.g. façade works, lift replacements) that may raise maintenance fees.
Ask your agent or lawyer to verify that there are no existing caveats or encumbrances registered against the property at SLA.[1]
Clarify what fixtures and fittings are included—built-ins, white goods, and aircon units—before signing.

7. Step 6 – Engage Conveyancing Lawyer & Conduct Due Diligence

Once the OTP is issued, immediately appoint a Singapore conveyancing lawyer. In practice, buyers do this even earlier, especially first-timers who want guidance on tax implications and contract clauses.

7.1 What your lawyer will usually do

Conduct title searches and verify ownership and encumbrances via the Singapore Land Authority (SLA).[1][7]
Review the OTP and draft/standard Sale & Purchase Agreement.
Check MCST records for unpaid maintenance, disputes, or special levies.
Calculate BSD and ABSD accurately and handle e-stamping with IRAS.[1][4]
Coordinate with your bank’s lawyer on mortgage documentation.

This is also when the lawyer will explain any unusual clauses, such as early completion, tenancy take-over, or sellers needing a rent-back period, which are common around CBD fringe developments.

8. Step 7 – Exercise OTP & Pay Stamp Duties

You must exercise the OTP before it expires by signing the acceptance and paying the remaining deposit (commonly 4%). This is the point where the transaction becomes legally binding for both parties.[4][6]

For resale properties, BSD and ABSD are due within 14 days of exercising the OTP (or from signing the S&P for new launches).[1][4][6] Your lawyer usually submits payment to IRAS electronically on your behalf, but you must ensure funds are ready in the designated account.

Insider caution: For foreign buyers bringing funds from the US, UK, or China, allow for FX conversion and bank transfer lead times. Large sums sometimes trigger compliance checks, so do not wait until the last three days of your option period. If you are subject to capital controls (e.g. certain Chinese buyers), review our dedicated guide China Capital Controls & Buying Singapore Property: 2026 Homejourney Guide .

9. Step 8 – Finalise Loan, Completion & Handover

After you exercise the OTP, the bank orders a valuation and, if satisfactory, issues a formal Letter of Offer.[4] You will sign loan documents, often at the bank’s panel law firm office.

9.1 Completion timeline

From OTP exercise to legal completion: usually 8–12 weeks for resale.[1][3]
On completion day, your lawyer and bank’s lawyer exchange funds with the seller’s lawyer.
Your lawyer lodges transfer documents with SLA, registering you as legal owner.[1]

Once completion is done, you collect keys—often at the property itself. The SLA registration and title issuance usually take another 1–2 weeks.[1]

At this stage, Homejourney can help you prepare the unit through trusted partners, including Aircon Services for aircon servicing and cleaning before you move in or list the unit for rent.