Foreigners buying property: Approval required for 'Commercial & Residential' zone
The "Commercial & Residential" property zone permits developments such as shopping centres with residences above.
SINGAPORE — Foreigners – individuals and entities – who intend to purchase property or land in Singapore, that is zoned for mixed commercial and residential use, must first seek government approval starting from Thursday (20 July).
The Ministry of Law and the Singapore Land Authority (SLA) said in a joint announcement that they have refined the Schedule of Non-Residential Properties under the Residential Property Act (RPA), which entails updating the list of land use zones that have been designated as non-residential property.
Following the update, the "Commercial & Residential" zone, which permits developments with a combination of residential and commercial use such as shopping centres with residences above, will be removed from the list.
As these zones are predominantly for residential use, such developments will now be deemed as residential property and regulated under the RPA to "better reflect the intent of the RPA to safeguard residential land for Singaporeans".
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The announcement added that foreign individuals or entities who are existing owners of land zoned or property permitted for mixed commercial and residential use are exempted from obtaining approval under the RPA if the intention is to retain the property "as-is".
However, approval under the RPA is needed should they wish to retain and redevelop the property.
Additionally, foreign persons intending to purchase or acquire an interest in land zoned or property permitted for "Commercial & Residential" use can be exempted from obtaining approval under the RPA if certain conditions are met.
These conditions include that the Option-to-Purchase (OTP) was granted by sellers to potential buyers before 20 July 2023, is exercised on or before 9 August 2023 and has not been varied on or after 20 July 2023.
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