Foreigners Now Need To Seek Approval To Buy Commercial And Residential Land
SINGAPORE – Starting from Thursday, overseas individuals and entities are required to obtain approval from the government before they are permitted to acquire or buy a stake in land zoned as “commercial and residential,” reported The Business Times on Wednesday evening (July 20, SGT).
This comes after the Residential Property Act (RPA) was amended to “safeguard residential land for Singaporeans,” announced the Singapore Land Authority (SLA) and the Ministry of Law (MinLaw) on Wednesday evening.
Due to the law’s revision, developments on land zoned for “commercial and residential” usage are now considered as residential property and are now under the scope of the RPA, which was previously not the case.
“Commercial and residential” properties include a mixed-use development with a shopping mall, office, and hotel component. Some examples include UE Square and Robertson Walk.
According to current regulations, land zoned for commercial and residential need to allocate at least 60 percent of allowable floor area for residential use.
Foreign individuals and entities who already own land or property zoned for commercial and residential use don’t need to seek approval if they plan to retain ownership of the asset as-is. But if they want to redevelop the property and retain ownership, they are required to do so.
Under the revised rules, they don’t need to seek government approval to buy commercial and residential land in Singapore if the seller granted the Option to Purchase (OTP) before 20 July 2023 and the OTP will be exercised until 9 August 2023. However, the OTP must not be changed on or after 20 July.