Singapore - Foreign Ownership and Purchasing Property

Foreigners can own both freehold and leasehold property in Singapore. There is no restriction on foreign ownership of residential property according to tenure.

However there is a restriction on foreign ownership of dwelling houses (ie landed properties, including strata landed developments) under the Residential Property Act (Cap.274) ("RPA").

Under the RPA any person who does not fall into one of the categories listed below is a foreigner: -

• a Singapore citizen;
• a Singapore company;
• a Singapore limited liability partnership;
• a Singapore society.

(b), (c) and (d) are defined very clearly in the RPA.

A permanent resident of Singapore is a foreigner.

A company incorporated in Singapore, which has a non-Singapore citizen as any one or more of its directors and /or members is a foreigner too. A company having as a member another company is a foreign company too if the member company is not incorporated in Singapore or does not have as all its members and directors Singapore citizens.

A foreigner however may buy any flat used for residential purposes. This includes a unit in a condominium or an executive condominium and any unit in a building of 4 stories or higher.

In respect of the purchase of dwelling houses by foreigners, consent is required from the Controller of Residential Property in the Land Dealings (Approval) Unit. The only exception to this requirement is for landed property in Sentosa Cove, which is a category onto itself and has its own requirements.

Section 25 of the RPA applies in respect of purchases of dwelling houses by a foreigner who, once approval has been obtained from the Controller of Residential Property in the Land Dealings (Approval) Unit may require security (which may be in the form of a banker's guarantee) to be provided by the foreigner to ensure compliance with the terms imposed by the Controller on the foreigner buying the dwelling house.