How Do You Understand Non-Restricted Residential Properties?
The Singapore government imposed restrictions about private residential property ownership. In 1973, the government made the Residential Property Act, which gives the citizens of Singapore a good chance to buy and own a property at an affordable price. In 2005, the act was amended to allow foreigners to purchase non-condominium apartments that are less than 6 levels without any need to obtain prior approval. The act’s goal is to balance the land and property ownership between the Singaporeans and the foreigners wanting to buy a property in Singapore. Under the act, a foreign person is defined as not a Singapore citizen, not a Singapore company, not a Singapore society, and not a Singapore limited liability partnership.
Non-restricted properties are condominiums or any development that is classified as a condominium, a flat in a building with six levels or more, and a leasehold estate in a restricted residential property with a term that does not exceed seven years. If you are a foreigner living in Singapore, you should make sure that the property you are going to buy is not under the listing of the restricted property.
Restricted properties in Singapore
The restricted properties are the landed properties, semi-detached, terrace houses, and vacant lands. An example of the landed property is the bungalow. Foreigners need to obtain an approval before they can buy restricted properties. The HDB Shophouse, HDB flat, resale HDB flat, and the Executive Condominium under the Executive Condominium Housing Scheme Act 1996 are also classified as restricted properties.
How do you go about purchasing a non-restricted property in Singapore?
The application or request to buy should be submitted first to the Land Dealing for approval. The Land Dealing issues the certificate and deals with the general inquiries about the act. The Option to Purchase shall state that the sale and purchase of the property require the approval of the Land Dealing Approval Unit or LDAU.
What are the criteria in buying restricted residential property?
You should have a Singapore permanent resident ID or SPR, proof of economic contribution to the government of Singapore, has academic or professional qualifications, can present a resume of verifiable working experience, and form of investments in the type of industry or service sector.
Buying a property jointly as friends
You are allowed to buy a property together as long as both of you are not related and single. Single means you are divorced, widowed, or not married.