Foreigner Guide to Buying Property in Singapore: Everything You Need to Know

Singapore’s dynamic economy, political stability, and exceptional quality of life make it an attractive destination for property investors around the globe. If you’re a foreigner considering buying real estate in the Lion City, this guide will walk you through the essential steps, legal requirements, and investment options. Here's your complete foreigner guide to buying property in Singapore.

Why Foreigners Invest in Singapore Property

Before diving into the process, it's important to understand why Singapore remains a top choice among international property buyers:

Stable Economy: A robust financial system with low corruption.
Safe Living Environment: Low crime rates and high quality of life.
Strategic Location: Positioned as a gateway to Asia.
World-Class Infrastructure: Excellent public transport and healthcare.
Capital Appreciation: Strong potential for long-term returns on investment.

Can Foreigners Buy Property in Singapore?

The short answer is yes, but with certain restrictions. Under the Residential Property Act, foreigners can freely purchase specific types of property, while others require government approval.

Property Types Foreigners Can Buy Without Approval:

Condominiums
Executive Condominiums (ECs) – Only after the 10-year minimum occupancy period (MOP).
Commercial Properties – Shophouses, offices, retail units, and industrial spaces.
Strata-titled Apartments (non-landed)

Property Types That Require Approval:

Landed Properties – Bungalows, terrace houses, semi-detached houses.
HDB Flats (Public Housing) – Not available to foreigners unless you're a Permanent Resident (PR) married to a Singaporean.

To buy landed property, a foreigner must apply for approval from the Singapore Land Authority (SLA). Approval is rarely granted unless the buyer makes significant economic contributions to the country.

Legal Requirements and Eligibility

1. Minimum Age

You must be at least 21 years old to buy private property in Singapore.

2. Residency Status

Foreigners (non-PRs) are limited to private properties.
Singapore PRs have slightly more leeway but still cannot purchase HDB flats directly.

3. Approval from SLA (for restricted property)

You’ll need to apply through the Land Dealings Approval Unit (LDAU). Approval is discretionary and case-specific.

Steps to Buying Property in Singapore as a Foreigner

Step 1: Define Your Budget

Singapore real estate is premium-priced, especially in central districts. Key costs include:

Down Payment: Minimum 25% of the purchase price
Buyer’s Stamp Duty (BSD)
Additional Buyer’s Stamp Duty (ABSD) – 60% for foreigners as of 2024 (except nationals from the US, Switzerland, Norway, Iceland, and Liechtenstein, due to Free Trade Agreements)

Tip: Always budget for legal fees, property taxes, and agent commissions.

Step 2: Get Loan Pre-Approval (Optional)

You may apply for an In-Principle Approval (IPA) from banks to understand your loan eligibility. Foreigners are generally allowed a maximum Loan-to-Value (LTV) ratio of 75% (subject to income, debt, and creditworthiness).

Step 3: Engage a Property Agent

A licensed real estate agent (registered with Council for Estate Agencies – CEA) is highly recommended. They can:

Identify suitable listings
Handle negotiations
Manage paperwork
Guide you through local property laws

Step 4: Property Viewing and Due Diligence

Visit multiple properties and evaluate the following:

Location and connectivity
Rental yield potential
Developer reputation (for new launches)
Condition of the property (for resale units)

Ensure the property title is clean and the seller is the rightful owner.

Step 5: Make an Offer and Sign OTP

Once you've decided:

Option to Purchase (OTP) – Pay 1% of the property price to "hold" the property.
Exercise OTP – Within 14 days, pay another 4% to confirm the deal.

Step 6: Engage a Lawyer

A lawyer will:

Conduct legal checks on the property
Liaise with the seller’s solicitor
Prepare and lodge the Sales and Purchase Agreement

Step 7: Pay Stamp Duties

You must pay both Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD) within 14 days of signing the Sales and Purchase Agreement.

Buyer’s Stamp Duty (BSD):

Price Bracket	BSD Rate
First $180,000	1%
Next $180,000	2%
Next $640,000	3%
Above $1 million	4% to 5% (tiered rate)

Additional Buyer’s Stamp Duty (ABSD):

60% for Foreigners (as of April 2023)
0% for Nationals from the USA or countries with FTA

Step 8: Complete the Transaction

The whole transaction typically takes 8 to 12 weeks from signing the OTP to full ownership. The remaining 95% of the payment is completed via bank loan and/or cash.

New Launch vs. Resale Properties: What's Better?

New Launch Condominiums

Modern amenities
Progressive payment scheme
Higher appreciation potential

Resale Condos

Immediate occupancy
Often in mature estates
Easier rental income

Both have pros and cons. If you're looking for capital growth, new launches in developing areas like Lentor, Jurong Lake District, or Tengah might be ideal.

Taxes and Ongoing Costs

Foreign buyers must consider ongoing costs such as:

Property Tax – Based on annual value and usage (owner-occupied or rental)
Maintenance Fees – For condos and strata-titled properties
Rental Income Tax – If you lease the property

Can Foreigners Rent Out Their Property?

Yes. You can legally rent out private residential and commercial properties as a foreigner. Many investors generate passive income through rental yields in high-demand districts like Orchard, Tanjong Pagar, and East Coast.

Top Locations for Foreign Property Buyers

Here are some popular districts among foreign investors:

1. District 9 (Orchard, River Valley)

Luxury condos
High-end retail
Strong rental market

2. District 15 (East Coast, Katong)

Beach lifestyle
Family-friendly
Good schools and expat community

3. District 22 (Jurong Lake District)

Future CBD of the west
Strong growth potential
Major infrastructure development

Foreign Ownership: Key Rules and FAQs

Can a Foreigner Own Freehold Property?

Yes, foreigners can own freehold condos, but not landed freehold homes without SLA approval.

Is Leasehold Property a Good Investment?

Yes. Many 99-year leasehold condos offer modern amenities and good locations. However, resale value may decline as lease diminishes.

What if I Marry a Singaporean?

You may become eligible for HDB flats and other local housing schemes after obtaining PR status.

Pros and Cons of Buying Property in Singapore as a Foreigner

Pros:

Safe and reliable legal framework
High rental demand
Currency stability
Transparent transaction process

Cons:

High stamp duties (ABSD)
Limited property options (landed HDB restricted)
Cooling measures to curb speculation

Final Thoughts: Is It Worth Buying Property in Singapore as a Foreigner?

Absolutely – if you're looking for a stable, long-term investment, Singapore real estate remains one of Asia’s most resilient markets. Despite stringent cooling measures like ABSD, the market continues to offer capital appreciation, strong rental yields, and asset security.

Whether you're relocating, investing, or diversifying your portfolio, this foreigner guide to buying property in Singapore should serve as your roadmap to making an informed decision. Work with licensed professionals, plan your finances wisely, and explore different districts to find your ideal property.