What's the purchase process to buy a property in Singapore?

Authored by the expert who managed and guided the team behind the Singapore Property Pack

Everything you need to know before buying real estate is included in our Singapore Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Singapore. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Singapore real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Singapore and surrounding regions. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How do I check if I'm even allowed to buy property in Singapore as a foreigner?

Foreigners can purchase private condominiums and apartments in Singapore without any government approval, but face significant restrictions on other property types.

The Singapore government maintains a clear hierarchy of property ownership rights. As a foreigner without Permanent Residency, you have full access to the private condominium and apartment market, which includes most high-rise residential developments across the island.

However, you cannot buy HDB flats (public housing), which make up about 80% of Singapore's residential stock. You also cannot purchase landed properties like houses, townhouses, or bungalows without explicit approval from the Singapore Land Authority, which is rarely granted except for certain Sentosa Cove properties.

Executive Condominiums present a middle ground - you can only buy ECs that are more than 10 years old and have been fully privatized. Newer ECs remain restricted to Citizens and Permanent Residents for the first decade after construction.

The easiest way to verify your eligibility is to focus on private condominiums and apartments, where your foreign status poses no legal barriers to ownership.

What are the eligibility rules for different property types like HDB flats, executive condos, and private condos?

Property Type	Foreign Eligibility	Additional Requirements
Private Condos/Apartments	Fully Allowed	None - can purchase freely
HDB Resale Flats	Not Allowed	Only Citizens/PRs with 3+ years residency
New HDB Flats	Not Allowed	Citizens only, income ceiling applies
Executive Condos (New)	Not Allowed	Citizens/PRs only for first 5-10 years
Executive Condos (10+ years)	Allowed	Must be fully privatized
Landed Properties	Restricted	Requires SLA approval (rarely granted)
Sentosa Cove Landed	Allowed	Special designated area for foreigners

How do I calculate the Buyer's Stamp Duty and Additional Buyer's Stamp Duty I'll need to pay?

As a foreigner buying property in Singapore, you'll pay both Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD), which can add up to a substantial cost on top of your purchase price.

Buyer's Stamp Duty applies to all property purchases and is calculated on a tiered system. For the first S$180,000 of property value, you pay 1%. The next S$180,000 is taxed at 2%. The following S$640,000 is taxed at 3%. Any amount above S$1 million is taxed at 4%.

Additional Buyer's Stamp Duty hits foreign buyers particularly hard at 60% of the purchase price or market value, whichever is higher. This means on a S$1 million condo, you'll pay S$600,000 in ABSD alone, plus about S$23,800 in BSD.

The ABSD must be paid within 14 days of exercising your Option to Purchase, and it cannot be financed as part of your mortgage. This creates a significant cash requirement beyond your down payment. For a S$1.5 million property, your total stamp duties would be approximately S$920,000.

It's something we develop in our Singapore property pack.

What financing options do I have, and how do I know how much I can borrow under Singapore's loan-to-value limits?

Foreign buyers can access financing from Singapore banks, but loan-to-value ratios are typically capped at 75% for first-time borrowers, subject to age, income, and loan tenure considerations.

Singapore banks assess your borrowing capacity using the Total Debt Servicing Ratio (TDSR), which limits all your monthly debt obligations to 55% of your gross monthly income. This includes your proposed mortgage payments, credit card minimums, car loans, and any other recurring debts.

For a practical example, if your monthly income is S$15,000, your maximum monthly debt service cannot exceed S$8,250. If you already have S$2,000 in existing debts, your mortgage payment cannot exceed S$6,250 monthly. This translates to roughly a S$1.2 million loan at current interest rates.

Most banks prefer to see at least 30% of your income from Singapore sources or have a Singapore employment contract. Some banks may offer lower LTV ratios to foreign buyers, particularly if your income is entirely overseas-sourced.

Interest rates for foreigners typically range from 3.5% to 4.5% as of September 2025, depending on whether you choose fixed or floating rates and your relationship with the bank.

What's the minimum cash down payment required, and how does the rest of the payment work?

The minimum cash down payment for foreign buyers is 5% of the purchase price, but you must also pay the full 60% ABSD upfront, creating a much larger cash requirement than the down payment alone.

Here's how the payment structure works for a S$1.5 million property: You need S$75,000 (5%) as your minimum down payment if you secure maximum financing. However, you also need S$900,000 for ABSD and approximately S$38,000 for BSD, totaling over S$1 million in upfront cash requirements.

The payment timeline typically follows this sequence: 1% of purchase price when you receive the Option to Purchase, another 4% when you exercise the option (usually within 14 days), and the remaining 20% upon completion if you're taking a 75% loan.

Unlike Singapore Citizens and Permanent Residents who can use CPF funds for their down payment, foreign buyers must rely entirely on cash or overseas financing. Some buyers arrange bridge financing or liquidate overseas investments to meet these cash requirements.

The ABSD payment deadline is strict - it must be paid within 14 days of exercising your Option to Purchase, regardless of your loan approval status. Late payment incurs penalties of up to 20% per annum.

What are the steps to make an offer, pay the option fee, and exercise the Option to Purchase?

1. **Submit Your Offer**: Present a written offer through your agent specifying price, completion date, and any conditions. The seller may counteroffer until both parties agree on terms.2. **Pay Option Fee**: Once your offer is accepted, pay 1% of the purchase price to secure a 14-day Option to Purchase (OTP). This gives you exclusive rights to buy the property within the option period.3. **Conduct Due Diligence**: Use the 14-day period to arrange financing, conduct property valuation, review title documents, and verify there are no outstanding issues with the property.4. **Exercise the Option**: If proceeding, sign the OTP and pay an additional 4% of the purchase price before the option expires. This legally commits you to complete the purchase.5. **Prepare Legal Documentation**: Engage a lawyer to prepare the Sale and Purchase Agreement, which contains all terms and conditions of the sale.

The Option to Purchase is a crucial document that legally binds the seller to sell to you at the agreed price, but you're not obligated to buy until you exercise it. If you don't exercise the option within 14 days, you forfeit the 1% option fee but have no further obligations.

During the option period, secure your financing pre-approval and arrange for a property valuation, as banks won't process your loan without these steps completed.

How do I complete the Sale & Purchase Agreement and when do I need a lawyer?

You need a lawyer immediately after exercising your Option to Purchase to prepare the Sale & Purchase Agreement, as this complex legal document requires professional expertise to protect your interests.

The Sale & Purchase Agreement is far more detailed than the Option to Purchase and includes specific terms about property condition, fixtures and fittings, completion dates, and penalty clauses for delays. Your lawyer will review the title documents, check for encumbrances, and ensure all legal requirements are met.

Legal fees typically range from S$2,500 to S$4,000 for a straightforward transaction, plus disbursements for searches and registration. Your lawyer will also coordinate with the seller's lawyer to ensure smooth completion.

The agreement includes important clauses such as the completion date (usually 8-12 weeks after exercising the option), what happens if either party defaults, and how deposits are handled. For foreign buyers, your lawyer should be experienced with international fund transfers and anti-money laundering requirements.

Your lawyer will also handle the final completion process, including the transfer of legal ownership, registration of the property in your name, and ensuring all payments are properly distributed.

What's the process for property valuation and loan approval before I commit?

Property valuation and loan approval should be initiated immediately after receiving your Option to Purchase, as you have only 14 days to decide whether to exercise the option.

Banks require an independent valuation to ensure the property value supports the loan amount. The valuation typically costs S$500-800 and takes 3-5 business days. If the valuation comes in below your purchase price, the bank will only lend based on the lower valuation, requiring you to make up the difference in cash.

Loan approval involves submitting income documents, bank statements, employment letters, and tax returns. Foreign buyers should prepare certified translations of overseas documents and may need to provide additional documentation about the source of their funds.

Banks typically issue an approval-in-principle within 1-2 weeks, but final approval only comes after the valuation is completed. Some banks offer simultaneous processing to speed up the timeline for buyers working within the 14-day option period.

If your loan is rejected or the valuation is insufficient, you may need to walk away from the purchase and forfeit your 1% option fee. This is why many experienced buyers arrange financing pre-approval before making offers.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Singapore versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the ongoing costs after purchase like property tax, maintenance fees, and insurance?

Property tax in Singapore is calculated based on the Annual Value (estimated rental value) of your property, with rates varying depending on whether you occupy the property yourself or rent it out.

For non-resident owners, property tax rates range from 12% to 36% of Annual Value for non-owner-occupied properties. Owner-occupied properties are taxed at lower rates from 0% to 32%. For a S$1.5 million condo with an Annual Value of S$36,000, expect to pay S$4,320-12,960 annually in property tax.

Maintenance fees for condominiums typically range from S$300-800 per month depending on the development's facilities and size of your unit. Luxury developments with extensive amenities can charge S$1,000+ monthly. These fees cover security, landscaping, pool maintenance, gym operations, and common area upkeep.

Fire insurance is mandatory if you have a mortgage, typically costing S$200-500 annually for a standard condo unit. Many owners also purchase additional coverage for contents and renovations.

Other ongoing costs include utilities (S$100-300 monthly), internet and cable (S$50-150 monthly), and periodic maintenance like aircon servicing and appliance repairs.

What mistakes do buyers often make with stamp duties and deadlines that end up costing them?

The most expensive mistake foreign buyers make is failing to pay the 60% ABSD within 14 days of exercising their Option to Purchase, which triggers penalty interest of up to 20% per annum on the outstanding amount.

Many buyers underestimate the cash required for stamp duties and scramble to arrange funds after exercising their option. For a S$1.5 million purchase, you need S$900,000 for ABSD plus S$38,000 for BSD - nearly S$940,000 in stamp duties alone that cannot be financed.

Another common error is not accounting for legal fees, valuation costs, and other transaction expenses when calculating their total budget. These additional costs typically add S$5,000-10,000 to the purchase price.

Some buyers exercise their option without securing loan approval, only to discover their financing falls through. If you cannot complete the purchase, you forfeit your entire deposit (typically 5% of purchase price) and may face legal action from the seller.

Buyers also sometimes misunderstand the completion timeline, thinking they have months to arrange their finances when they actually have just days after exercising the option to meet stamp duty obligations.

What are the common misunderstandings about eligibility for HDBs or executive condos that I should avoid?

The biggest misunderstanding is assuming that having a Singapore work visa or Employment Pass makes you eligible to buy HDB flats, when in reality only Singapore Citizens and Permanent Residents can purchase public housing.

Many foreigners married to Singaporeans think they automatically qualify for HDB purchases, but they must apply under the Non-Citizen Spouse Scheme, which has strict requirements including the spouse being a Singapore Citizen and meeting family nucleus requirements.

For Executive Condominiums, buyers often confuse the eligibility timeline. New ECs are restricted to Citizens and PRs for the first 5 years (Minimum Occupation Period), then PRs and foreigners can buy resale ECs from years 5-10, and only after 10 years do ECs become fully privatized for unrestricted foreign ownership.

Some buyers think they can purchase multiple HDB or EC units, but these properties are meant for owner-occupation with strict rules about selling and buying subsequent units.

It's something we develop in our Singapore property pack.

What legal or procedural delays do foreign buyers often run into when transferring funds or finalizing ownership?

International fund transfers often trigger anti-money laundering checks that can delay completion by several weeks, especially for large amounts like ABSD payments that exceed S$500,000.

Banks may freeze or investigate overseas transfers, requiring extensive documentation about the source of funds, employment history, and tax clearances from your home country. Some buyers have experienced 2-4 week delays while banks verify legitimate sources of income.

Foreign buyers from certain countries may face additional scrutiny or requirements for government clearances before large property purchases can be completed. The Singapore authorities may request additional documentation about your background and source of wealth.

Currency conversion timing can also create issues, as significant exchange rate movements between option exercise and completion can affect the amount you need to transfer. Some buyers arrange forward contracts to lock in exchange rates.

Documentation challenges arise when overseas income statements, bank letters, or tax returns need to be translated, notarized, or apostilled, which can take weeks if not arranged in advance.

It's something we develop in our Singapore property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Instarem - Can Foreigners Buy Property in Singapore
2. PLB Insights - Property Types for Foreigners in Singapore
3. 99.co - Foreign Ownership of Property Singapore
4. Mortgage Master - HDB Non-Citizen Spouse Scheme
5. MoneySmart - HDB EC House Singapore Guide
6. Prop.sg - Can Foreigners Buy Property Singapore
7. Singapore Land Authority - Foreign Ownership
8. Emerhub - Buying Property Singapore for Foreigners