Residential Property Categories and Ownership Rules
Acquisition of Public Housing (HDB Properties)
Public housing in Singapore – commonly referred to as **“HDB properties”** – is developed and regulated by the Housing and Development Board (HDB). As a general rule, only individuals who are **Singapore citizens** or **Singapore permanent residents** (“qualifying individuals”) are permitted to acquire HDB properties.
Certain exceptions exist under specific eligibility schemes for non-qualifying individuals. For instance, a non-resident who is married to a Singapore citizen may be eligible to purchase a HDB property jointly with the said Singapore citizen under the Non-Citizen Spouse Scheme, subject to the fulfilment of all applicable conditions. Likewise, a Singapore permanent resident may jointly purchase a HDB property with a Singapore citizen or another eligible permanent resident under schemes such as the Married Couples Scheme, provided that all applicable eligibility criteria are satisfied. Companies and other corporate entities are however not allowed to purchase HDB properties.
Acquisition of Private and Restricted Residential Properties
In contrast, the acquisition of **private residential properties** in Singapore is generally not restricted. Save for properties which are classified as “restricted residential properties” (as further discussed below), individuals of any nationality, and local and foreign companies and other corporate entities, may acquire private residential properties in Singapore.
Pursuant to the Residential Property Act 1976 (the Act), the term **“restricted residential properties”** includes but is not limited to vacant residential land, landed properties (including terrace houses, semi-detached houses and bungalows/detached houses) and residential shophouses.
The Land Dealings Approval Unit (LDAU) Approval Process
Who is Classified as a “Foreign Person” Under the Act?
Under the Act, a **foreign person** (as discussed below) who intends to acquire any restricted residential property – whether solely or jointly with a non-foreign person – is required to obtain prior approval (hereinafter referred to as the **“LDAU Approval”**) from the Land Dealings Approval Unit of the Singapore Land Authority (LDAU). Applications are each subject to a non-refundable application fee, currently of S$1,220, and will be assessed by the LDAU on a case-by-case basis.
For the purposes of the Act, the term **“foreign person”** is defined to mean any individual or entity who is **not** a Singapore citizen, Singapore company, Singapore limited liability partnership or Singapore society. It is to be noted that a **Singapore permanent resident** is also a “foreign person” under the Act.
Definitions of Singapore Entities
The Act further provides the following definitions:
- Singapore company: Refers to any company that satisfies all of the following requirements:
(a) incorporated in Singapore;
(b) all of its directors are Singapore citizens; and
(c) all of its members/shareholders are Singapore citizens, Singapore companies and/or Singapore limited liability partnerships. - Singapore limited liability partnership: Refers to any limited liability partnership that satisfies all of the following requirements:
(a) registered in Singapore under the Limited Liability Partnerships Act 2005; and
(b) all of its partners are Singapore citizens, Singapore companies and/or Singapore limited liability partnerships. - Singapore society: Refers to any society that satisfies all of the following requirements:
(a) formed or constituted in Singapore;
(b) registered or exempted from registration under any written law in force in Singapore;
(c) all of its members/shareholders are Singapore citizens; and
(d) all of its trustees are either Singapore citizens and/or trust companies licensed under the Trust Companies Act 2005.
Timing and Validity of the LDAU Approval
A foreign person looking to purchase a restricted residential property should consider obtaining the LDAU Approval **before paying the option fee/deposit** to the seller and before entering into a binding agreement for the acquisition of a restricted residential property. This reduces the risk of the foreign purchaser having the option fee/deposit forfeited by the seller or breaching its contractual obligations under the agreement if the LDAU Approval is ultimately not secured.
Where the foreign purchaser intends to apply for the LDAU Approval before entering into any binding agreement, it is important to note that the LDAU Approval is only **valid for one year** from the approval date and its validity period cannot be extended. If details of the intended property acquisition are not submitted to the LDAU within this period, the LDAU Approval will lapse, necessitating a fresh application. Additionally, the LDAU Approval is typically subject to conditions, such as restrictions on disposal within a prescribed period.
Exemptions and the Clearance Certificate Requirement
Unlike foreign persons, **Singapore citizens** are not required to obtain the LDAU Approval to acquire restricted residential properties, whether individually or jointly with other Singapore citizens. However, if the other joint owner (such as the spouse of the Singapore citizen) is a Singapore permanent resident, the LDAU Approval will still be required.
While Singapore companies, Singapore limited liability partnerships and Singapore societies are also exempt from the requirement to obtain the LDAU Approval, they are required to obtain a **Clearance Certificate** from the LDAU. This application is to be submitted online at https://app.sla.gov.sg/ldau/ and accompanied by a non-refundable application fee of S$600.
In the case of a Singapore company, the Clearance Certificate authorises the acquisition and retention of restricted residential properties in Singapore so long as (i) all members/shareholders of the company are and will remain as Singapore citizens, Singapore companies and/or Singapore limited liability partnerships; and (ii) all directors of the company are and will remain as Singapore citizens.
Maintaining Compliance and Potential Penalties
Should a Singapore company, after obtaining a Clearance Certificate, intends to appoint a director who is not a Singapore citizen; or admit a member/shareholder that is not a Singapore citizen, a Singapore company or a Singapore limited liability partnership, the company must obtain **prior written approval** of the Controller of Residential Property pursuant to section 9 of the Act.
Otherwise, (a) the company shall be guilty of an offence and, if convicted, shall be liable to a fine **not exceeding $50,000**; and (b) under section 36(3) of the Act, every individual who at the time the offence was committed was a director, secretary or other officer of the company, or a body concerned in the management in the company, or who was purporting to act in any such capacity, shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
