Can Foreigners Buy Landed Property In Singapore?

  • 2 years ago
Can-Foreigners-Buy-Landed-Property-In-Singapore
Can Foreigners Buy Landed Property In Singapore

Unveiling the Mysteries: Can Foreigners Buy Landed Properties in Singapore?

We all know Singapore—a gem in Southeast Asia, renowned for its stunning skyline, bustling business scene, and of course, its prestigious real estate market. Whether you’re drawn by its strategic location, political stability, robust economy, or even the delicious hawker food, one thing is certain—Singapore holds great allure for individuals seeking property investment opportunities.

Today, we’re shining the spotlight on an area of particular interest within Singapore’s real estate landscape—landed property. Owning landed property in this city-state is akin to a crowning achievement, a symbol of success for many. 

Not only does it afford greater privacy and space—an undeniable luxury in a densely populated country—but it’s also a tangible asset that historically appreciates over time. But as we navigate this topic, one question that frequently arises is this: Can foreigners buy landed property in Singapore?

In the following sections of this blog, we’ll explore that question in detail, demystifying the complexities of the Singapore property market, while offering insights into legal frameworks, foreign ownership restrictions, alternatives for foreign investors, and much more. 

This comprehensive guide is designed to empower you with the knowledge needed to navigate the real estate scene in Singapore, whether you’re planning an investment, seeking a new place to call home, or simply quenching your curiosity.

By the end of this read, you’ll be more equipped to tackle the vibrant and occasionally perplexing Singapore property market, understanding not just the ‘what’ but also the ‘why’ behind these regulations. So, buckle up, dear reader, as we journey into the fascinating world of Singapore landed property. Let’s explore the possibilities, restrictions, and everything in between.

Understanding Landed Property in Singapore

Before we delve into the intricacies of property ownership rules, let’s first define what we mean by “landed property.” 

Landed property, in the Singaporean context, refers to any residential property that comes with its own land. It’s a type of property ownership that provides you with the most control over the land, giving you the flexibility to rebuild, renovate, or redesign your property as you wish. 

But it’s not all the same — there are different types of landed properties in Singapore, each with its own characteristics.

Types of Landed Properties In Singapore

1. Terraced Houses: Just as the name suggests, these are houses arranged in a row, sharing side walls with the properties on either side. They provide a good balance between space and affordability within the landed property category.

2. Semi-Detached Houses: A semi-detached house shares a common wall with just one other house. These properties usually offer more space than terraced houses and come with their own gardens.

3. Detached Houses: These stand-alone properties, also known as bungalows, don’t share any walls with neighboring houses. They offer the highest level of privacy among landed properties and are usually much larger.

4. Good Class Bungalows (GCBs): These are the cream of the crop in Singapore’s landed property scene. GCBs are located in designated areas and must adhere to strict planning conditions set by the Urban Redevelopment Authority. They are coveted for their generous land size and exclusivity.

5. Cluster Housing: A hybrid between landed and non-landed property, cluster housing offers individual landed homes within a gated community that shares common facilities like a swimming pool or gym. They offer the benefits of landed living with the convenience of shared amenities.

Types of Landed Properties In Singapore

The appeal of landed property in Singapore is undeniable. Apart from the tangible asset value, there’s the allure of space and freedom—traits that can be rather scarce in a bustling city-state like Singapore. 

With the basic understanding of what constitutes landed property in Singapore, let’s next look at the legal framework that governs property ownership in this island nation.

Legal Framework for Property Ownership in Singapore

Singapore’s land laws have been shaped by its unique history and growth needs. To understand the landscape of property ownership, particularly for foreigners, we must first grasp the legal framework that surrounds it.

The primary legislation governing the acquisition, ownership, and disposal of residential properties in Singapore is the Residential Property Act (RPA). Introduced in 1973, the RPA restricts the ownership of residential property by foreign individuals and foreign corporations. The Act plays a crucial role in defining who can or cannot buy landed property in Singapore and under what conditions they may do so.

Apart from the RPA, several other regulations and authorities oversee property transactions in Singapore. The Housing Development Board (HDB) and Urban Redevelopment Authority (URA) are two critical entities that play a significant role in shaping Singapore’s real estate landscape. 

For landed property, the URA maintains the guidelines on plot size, building height, and the percentage of land that can be built upon, among other parameters.

Understanding these laws is key to navigating the Singapore property market, especially for foreign buyers. With this overview of the legal landscape, let’s dive next into the specifics of property ownership from both Singaporean and foreigner perspectives.

Property Ownership in Singapore: The Singaporean vs Foreigner Perspective

To fully appreciate the nuances of foreign property ownership in Singapore, it’s beneficial to understand the conditions and rights for different types of buyers—Singapore Citizens, Permanent Residents, and Foreigners.

A. Buying Property as a Singapore Citizen

Singapore Citizens have the most comprehensive rights when it comes to property ownership. They can purchase both HDB flats (provided they meet eligibility conditions) and private property, including landed property, without restrictions. In addition, they enjoy certain privileges, such as the absence of Additional Buyer’s Stamp Duty (ABSD) for the first property purchased.

B. Buying Property as a Foreigner with Permanent Resident (PR) Status

Singapore Permanent Residents can purchase private property, including condos, and landed properties under certain conditions. They can also buy HDB resale flats, but are ineligible to purchase new flats directly from HDB. PRs are required to pay ABSD on their first and subsequent property purchases.

C. Buying Property as a Foreigner without PR Status

Foreigners without PR status are allowed to buy private property in the form of condominium units without requiring approval from the Singapore Land Authority (SLA). However, for landed properties, there are significant restrictions, which we’ll delve into in the next section.

When Can A Foreigner Own Landed Property In Singapore?

Under the Residential Property Act, foreigners generally are not allowed to purchase landed residential property in Singapore. This includes vacant land, terrace houses, semi-detached houses, bungalows, and landed property in strata developments which are not approved condominium developments.

Exceptions to the rule: However, as with most laws, there are exceptions. There are two main scenarios where a foreign person might be allowed to own landed property in Singapore:

1. Foreigners who make exceptional economic contributions: In rare cases, the Minister for Law may approve the purchase of landed residential properties by foreign persons who have made substantial economic contributions to Singapore.

2. Sentosa Cove properties: Foreign persons are permitted to purchase landed properties within the precinct of Sentosa Cove, a luxury waterfront residential area. However, these properties must be used for the purchaser’s own residence and cannot be rented out or sold within the first 5 years of purchase.

Foreigners can buy landed property in Singapore Sentosa Cove

When Can A Foreigner Own Landed Property In Singapore?

While exemptions are rare, they are not unheard of. High-profile businesspeople, celebrities, and individuals who have made significant contributions to Singapore’s economy and society have been granted such exemptions.

These restrictions reflect Singapore’s unique circumstances as a small island with limited land and a high population density. The government’s main aim is to prevent the over-speculation of property prices and ensure that Singapore’s limited landed property remains largely in the hands of Singaporeans.

Remember, laws and regulations may change, and the information provided here is based on the situation as of the time of writing. Always seek professional advice and verify the latest rules and regulations when planning to purchase property in Singapore.

Conclusion

The Singapore property market presents a lucrative investment opportunity, but navigating it can be complex, especially for foreign buyers. The restrictions on foreign ownership of landed property are particularly stringent, but they’re not absolute. While the typical foreign buyer is not permitted to own landed property in Singapore, there are exceptions to this rule and many other investment opportunities to explore.

We hope that this guide has provided you with a comprehensive understanding of foreign property ownership in Singapore. Remember, while this guide serves as a good starting point, always consult with real estate professionals in Singapore to get accurate, personalised advice for your situation. With careful planning and research, your journey towards successful investing in the Lion City can begin.

If you’re a foreign investor looking for more information on investing in Singapore, our team of real estate experts are here to help you get started on your journey towards purchasing a property in Singapore.

With an experienced and knowledgeable team on your side, you can be sure that any questions or concerns you may have about property investment in Singapore will be taken care of. Contact us today and let us help you make the most out of your investment opportunities!

Compare listings

Compare