Step-by-Step Property Buying Process for Foreigners in Singapore
Buying property in Singapore as a foreigner is entirely possible, but the process differs significantly from what Singapore Citizens experience. Unlike domestic buyers who can purchase landed properties and HDB flats, foreigners face restrictions on property types, higher stamp duties, and additional approval requirements. Understanding the complete step-by-step property buying process for foreigners is essential to navigate these complexities confidently and avoid costly mistakes.
Homejourney is committed to creating a safe, trusted environment where foreign property buyers can make informed decisions. This guide breaks down the entire process—from eligibility checks through final completion—with specific timelines, costs, and actionable steps you need to follow.
Step 1: Verify Your Eligibility and Property Options
Before beginning your property search, confirm what you're legally permitted to purchase. Foreigners can buy private condominiums and apartments without approval, but restrictions apply to other property types. Foreigners cannot purchase landed properties, HDB flats, or Executive Condominiums (ECs) less than 10 years old. The only exception is Sentosa Cove, where foreigners can buy landed properties with approval granted within two days—but these must be owner-occupied and cannot be rented out.
There's also a height restriction: apartments must be in buildings with fewer than six stories unless you obtain government approval from the Land Dealings Approval Unit (LDAU). For properties requiring approval, your application is assessed on a case-by-case basis, considering factors like your permanent residency status (if applicable) and economic contribution to Singapore.
Use Homejourney's property type guide to understand which properties align with your investment goals and eligibility.
Step 2: Arrange Financing and Understand Loan Requirements
Most foreign buyers require mortgage financing. Singapore banks have specific requirements for overseas buyers that differ from local applicants. The maximum loan tenure is 35 years or until you reach 75 years of age, whichever comes first. Loan-to-Value (LTV) ratios for foreigners are typically 60-70% of the property value, meaning you'll need a substantial down payment.
Banks will request proof of income, employment status, and net worth. If you're working in Singapore, provide three months of payslips and bank statements. If you're overseas, prepare six months of payslips with corresponding bank statements. Self-employed buyers must submit proof of earnings and a net worth statement. Some banks may also require a valid work visa or Employment Pass.
Start pre-approval conversations early—ideally before you begin viewing properties. This clarifies your budget and demonstrates seriousness to sellers. Homejourney's financing guide for foreign buyers outlines available options and current bank rates to help you compare lenders.
Step 3: Calculate Total Costs Including ABSD
Understanding the full cost of your purchase is critical. Beyond the property price, foreigners pay the Additional Buyer's Stamp Duty (ABSD) at 20% of the property value—significantly higher than the rates for Singapore Citizens (12% on second properties) and Permanent Residents (5% on first purchase). This is a one-time cost paid during the purchase process.
Additional costs include:
- Buyer's Stamp Duty (BSD): Ranges from 1% to 4% depending on property price, paid within 14 days of executing the Option to Purchase
- Legal and conveyancing fees: Typically $800–$1,500, covering document preparation and registration
- Property inspection and valuation: $300–$600 for professional surveys
- Insurance: Mortgage insurance and home insurance, approximately 0.3–0.5% of loan amount annually
- Maintenance fees and sinking fund: Monthly contributions for condominiums, varying by property and share value
Use Homejourney's ABSD calculator to estimate your exact stamp duty liability based on property price and location.
Step 4: Search and View Properties (Onsite or Remotely)
Homejourney's property search tool allows you to filter by property type, location, price, and amenities. For overseas buyers unable to visit Singapore, virtual property viewings are increasingly available. Many developers and agents offer video tours, 3D floor plans, and video conferencing viewings.
When evaluating properties, consider proximity to MRT stations, workplace, schools, and shopping centers. Check maintenance fees and sinking fund contributions—these vary significantly between developments. For new launch projects, review the developer's track record and construction timeline (typically 2-5 years). For completed properties, request inspection reports and maintenance history.
Homejourney's remote property purchase guide provides detailed steps for buying property entirely online, including how to verify property details and conduct due diligence from abroad.
Step 5: Make an Offer and Secure the Option to Purchase (OTP)
Once you've identified a property, submit an offer through the seller's agent. For new launch properties, the process is standardized by the Controller of Housing. You'll pay 5% of the purchase price to book the unit and receive an Option to Purchase (OTP) within two weeks. The OTP gives you the right to purchase at the agreed price for a specified period.
For completed properties, terms are negotiable. Typically, you pay 1-5% as an option fee, though this varies. The exercise period (time to decide whether to proceed) is commonly 2 weeks but can be extended. During this period, finalize your mortgage approval with your bank.
The OTP is a legally binding document. Review it carefully with your lawyer before signing, as it outlines critical terms including the exercise period, completion timeline, and any special conditions.
Step 6: Execute the Sales and Purchase Agreement
After securing the OTP, you'll receive the Sales and Purchase Agreement (S&P). For new launches, you have 3 weeks to execute this document. For resale properties, the timeline is negotiable but commonly 2-4 weeks.
The S&P outlines all transaction details: purchase price, completion date, chattels included (air conditioning units, kitchen appliances), defect liability periods, and any special conditions. Have a Singapore-qualified lawyer review the S&P before signing—this protects your interests and clarifies obligations.
Upon executing the S&P, you typically pay an additional sum (4-15% for resale properties; varies for new launches). Stamp duties on the S&P must be paid within 14 days of execution. Your lawyer will handle stamp duty submission to the Inland Revenue Authority of Singapore (IRAS).
Step 7: Complete Due Diligence and Final Preparations
Between S&P execution and completion, conduct final due diligence. Obtain a professional property inspection to identify structural issues, plumbing problems, or electrical defects. Request the seller's strata title documents and management corporation records. Verify that all outstanding maintenance fees and property taxes are settled.
Finalize your mortgage with your bank. The bank will conduct its own valuation and may request additional documentation. Ensure your housing loan is fully approved before the completion date. Arrange home insurance—most banks require this before disbursing the loan.
For new launch properties, monitor construction progress. Developers provide updates at key milestones: completion of car parks and drains (5% of contract price paid), Temporary Occupation Permit (TOP, 25% paid—this is when keys are distributed), and Certificate of Statutory Completion (CSC, 15% paid—when legal title transfers to you).
Step 8: Complete the Purchase and Take Possession
Completion typically occurs 10-12 weeks after executing the S&P for resale properties. On the completion date, your lawyer transfers the remaining purchase funds to the seller's lawyer. Once funds clear, you receive the keys and take possession of the property.
For new launch properties, you take possession at TOP (when the Temporary Occupation Permit is issued). However, legal title only transfers upon CSC (Certificate of Statutory Completion), which occurs 15% into the completion payment schedule.
Upon taking possession, conduct a final walkthrough to ensure the property matches the agreed condition. Document any defects in writing. For new properties, you have a one-year developer's warranty covering structural defects and workmanship issues.
Timeline Summary: New vs. Resale Properties
| Stage | New Launch | Resale Property |
|---|---|---|
| Book unit + receive OTP | Day 0 | Day 0 |
| Receive S&P | Within 2 weeks | Within 2 weeks (negotiable) |
| Execute S&P | Within 3 weeks of receipt | Within 2-4 weeks (negotiable) |
| Completion | 2-5 years (construction period) | 10-12 weeks |
| Take possession | At TOP (during construction) | Upon completion |
Common Mistakes Foreign Buyers Make
Underestimating total costs: Many buyers focus only on the property price and forget ABSD (20%), BSD, legal fees, and inspection costs. Budget for an additional 25-30% beyond the purchase price.
Skipping legal review: The OTP and S&P are complex legal documents. Hiring a lawyer ($800-$1,500) is far cheaper than correcting mistakes later. Homejourney recommends always engaging a qualified conveyancer.
Proceeding without mortgage pre-approval: Securing pre-approval before making an offer demonstrates financial credibility and prevents disappointment if financing falls through. Banks take 2-4 weeks to approve foreign buyers.
Ignoring maintenance fees: For condominiums, monthly maintenance fees and sinking fund contributions can range from $300-$800+ depending on the development. These are ongoing costs that impact your total ownership expense.
Not conducting property inspection: New properties have a one-year warranty, but resale properties don't. A professional inspection ($300-$600) identifies costly repairs before you complete the purchase.
Key Documents You'll Need
- Valid passport or identity card
- Proof of income (6 months of payslips and bank statements if overseas; 3 months if working in Singapore)
- Employment Pass or valid work visa
- Net worth statement and proof of funds for down payment
- CPF statement (if applicable)
- Signed Option to Purchase (OTP)
- Signed Sales and Purchase Agreement (S&P)
- Mortgage approval letter from your bank
- Property inspection report
- Home insurance policy
