Buying Property in Singapore: A 12-Week Guide

At a Glance

• Eligibility: Koreans can freely purchase private condominiums, but landed houses are restricted (except in Sentosa Cove).
• Key Costs: You must prepare the 60% Additional Buyer’s Stamp Duty (ABSD) and approximately 3–6% Buyer’s Stamp Duty (BSD) in cash.
• Timeline: The process typically takes 8 to 12 weeks from the issuance of the OTP to Legal Completion.

If you live in Singapore, the eye-watering monthly rent might have made you wonder, "Should I just buy a place?" However, the real estate system here is quite different from what you might be used to in Korea, and the taxes for foreigners can be a significant barrier.

I remember how overwhelming it was to navigate the jargon and procedures when I first started looking for a home. Today, I’ll break down everything you need to know about buying property in Singapore, focusing on the actual timeline and costs to make it easy to understand.

1. Property Types and Tax Check for Koreans

First, you need to determine what kind of property you can buy and calculate the taxes. In Singapore, the types of housing available and the tax rates are strictly regulated based on your residency status.

• Private Condominiums: This is the most accessible housing type for Korean nationals (foreigners). These developments usually come with amenities like swimming pools and gyms.
• HDB (Public Housing): Resale HDB flats are only available to Permanent Resident (PR) families who have held their PR status for at least 3 years. Note that single PRs are not eligible to purchase HDB flats.
• Landed Property: Generally, foreigners are prohibited from buying landed houses, with the exception of those in the Sentosa Cove area.

The most critical factor is the tax. Currently, the Additional Buyer’s Stamp Duty (ABSD) for foreigners is 60%. For example, if you buy a condo for SGD 2,000,000, you will need to pay SGD 1,200,000 just in ABSD.

2. Loan Limits and Financial Planning

Before you start viewing properties, you must obtain an In-Principle Approval (IPA) from a bank to know exactly how much you can borrow. Singapore has strict lending regulations.

• LTV (Loan-to-Value): For your first home loan, you can borrow up to 75% of the property value. The remaining 25% must be paid as a down payment, of which at least 5% must be in cash.
• TDSR (Total Debt Servicing Ratio): Your total monthly debt repayments cannot exceed 55% of your monthly income. Banks usually apply a "stress test" interest rate (around 4%) to calculate this conservatively.
• Proof of Funds: If you are transferring funds from Korea, be prepared for thorough checks on the source of wealth. It is wise to plan your remittance strategy in advance.

3. The 5-Step Process: From OTP to Keys

Once you find a home you like, the formal administrative process begins. In Singapore, the entire transaction is handled through lawyers.

• Step 1. Issuance of OTP (Option to Purchase): You pay a 1% Option Fee to the seller and receive the OTP document. This gives you exclusive rights to the property for usually 14 days.
• Step 2. Appointing a Lawyer & Finalizing Loan: Confirm your bank loan and appoint a real estate lawyer. Legal fees typically range from SGD 2,500 to SGD 5,000.
• Step 3. Exercising the Option: Within 14 days of the OTP issuance, you pay an additional 4% Exercise Fee and sign the Sale and Purchase Agreement. At this point, the contract becomes legally binding.
• Step 4. Payment of Stamp Duties: Within 14 days of signing the agreement, you must pay the BSD and ABSD (60%) to IRAS. Since these cannot be covered by a loan, you must have this amount ready in cash.
• Step 5. Legal Completion: Usually 8 to 12 weeks after exercising the option, you pay the remaining balance and receive the keys. Your lawyer will finalize all fund transfers and the title deed.

4. Essential Tips for Success

The Singapore property market has nuances that differ from Korea. Check this list before signing any documents:

• Check the Bank’s Panel Lawyers: Choose a law firm that is on your lending bank's "approved panel." Otherwise, you may face additional administrative fees or delays in loan disbursement.
• Valuation vs. Purchase Price: Banks lend 75% based on the "valuation," not the actual transaction price. If you buy above the valuation, you must cover the "valuation gap" entirely in cash.
• Timing Your Remittance: Due to Anti-Money Laundering (AML) laws, banks may take time to verify large transfers from Korea. Ensure your funds are moved early to avoid missing the 14-day stamp duty deadline.
• FTA Benefits: Unfortunately, Korean nationals do not currently benefit from FTA clauses that grant ABSD exemptions (unlike citizens of the USA or Switzerland). You must factor the full 60% rate into your budget.

Owning a home in Singapore requires significant capital and patience, but if you plan to stay long-term, it remains an attractive option for asset preservation. I hope this guide helps you navigate your journey to homeownership in Singapore!

References

• IRAS: Stamp Duty for Property Purchase
• MAS: Residential Property Loans
• PropertyGuru: Singapore Property Purchase Guide
• HDB: Resale Flat Eligibility

Exchange rate: 1 SGD ≈ 1,150 KRW (As of Feb 6, 2026)