RESIDENTIAL PROPERTY ACT RESTRICTION

RESIDENTIAL PROPERTY ACT RESTRICTION

3.

Dr Amy Khor Lean Suan asked the Deputy Prime Minister and Minister for Law if his Ministry will consider lifting the restriction imposed under the Residential Property Act which disallows foreigners from buying landed properties unless they have approval from the Land Dealings Unit since Sentosa Cove has already been given an exemption from this restriction for its landed properties.

Prof. S Jayakumar: It is true that we have recently decided to lift some of the restrictions in the Residential Property Act (RPA) for foreigners buying Sentosa Cove properties. This special arrangement applies only to Sentosa Cove and does not apply to the rest of Singapore.

The reason for that decision is that Sentosa Cove is a unique world-class integrated waterfront development with complementary recreational facilities located on an offshore island. Offering a seafront location, the new lifestyle tenements will appeal to certain Singaporeans and foreigners who see unique value in these waterfront homes. We also intended to create a niche for the international clientele wishing to buy such exclusive waterfront homes and to help Sentosa Cove develop to its fullest potential as a world-class development.

Even with the restrictions under the RPA, foreigners have all along been able to purchase a wide range of private residential properties without restrictions: all condominiums as well as apartments that are six or more levels, which is up to 70% of all private residential properties in Singapore. Of the properties where restrictions apply, such as landed properties, foreigners may also purchase them, after obtaining the necessary approval.

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The RPA strikes a balance between keeping landed property affordable for Singaporeans and attracting foreigners to bring their assets and families to Singapore and contribute to our economy. As with other laws and policies, we will of course review this law from time to time.

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