Property Buying and Selling Laws in Singapore

The laws regarding the ownership and sale of real estate are transparent and fairly standard. However, due to escalating prices and favoring its own citizens, foreign investment is strictly regulated.

General buying and selling laws.

The main legal instrument governing the purchase of real estate is the Residential Property Law (RPA). For the sale of properties, the primary laws are governed by the Home Developers (Control and Licensing) Act (HDCLA) and the Commercial Property Sales Act.

Laws of buying and selling property and foreign investment

Applicable legal provisions

Foreigners are not allowed to purchase all residential property titles in a building or in an approved condominium building without the approval of the Minister of Justice. An application may be favored if the foreign buyer is a permanent resident or a qualified professional who can contribute to the well-being of the economy.

• They are not allowed to buy or own restricted housing except only by mortgage, lien, or conveyance.

• They cannot offer goods as a gift to a foreign compatriot.

• Transactions made by foreigners that contravene the Residential Property Law will be considered null and void.

• Foreigners are not allowed to buy land in Singapore except on Sentosa Island.

• Legal restrictions on the purchase and ownership of real estate

Unsurprisingly, in terms of property, Singapore’s laws lean towards its citizens who are empowered to freely acquire and own land and residential property. Organizations and foreigners, on the other hand, have a very limited ability to buy and own real estate.

Purchase and Ownership Restrictions

Singaporean companies, associations and partnerships must apply for permission from the controller of residential property.

Aliens with permanent resident status, foreign companies, limited partnerships, and partnerships may freely purchase unrestricted residential property such as:

• Any flat for residential purposes, but not a dwelling house on any land

• Any unit in an approved condominium building

• Any executive unit in a project sold under an executive scheme.

Legal restrictions to develop and sell

The relevant provisions of the HDCLA are the primary control over how land is developed and sold for housing purposes.

Development and sale restrictions.

A licensed housing developer is the only person authorized to develop and sell more than 4 housing units.

The Housing Comptroller is empowered to formulate the type of contract to be used with additional powers to approve any modifications made to the contract. Any contravention by the promoter will be considered as an infraction.

The sale of commercial buildings is controlled by the Commercial Property Sales Act (SCPA) and contracts for these sales are also approved by the Comptroller of Housing.

4-unit buildings do not fall within the scope of the SCPA, but do frustrate a foreign developer’s ability to expand development activities.