Owning a landed home in Singapore is a dream for many, but for permanent residents (PRs), there are strict rules and conditions to consider. The Singapore government regulates landed property ownership to prioritise citizens whilst allowing some PRs to buy landed property under specific circumstances. If you are a PR considering this investment, it is important to understand the legal requirements, eligibility criteria, and long-term implications.
1. General Restrictions for PRs
PRs buying landed property in Singapore is subject to approval from the Singapore Land Authority (SLA). Under the Residential Property Act, non-citizens, including PRs, cannot freely purchase landed homes without meeting specific conditions. The government enforces these housing restrictions for PRs to maintain the balance between foreign ownership and local housing needs.
PRs must apply for approval before purchasing:
- Terraced houses
- Semi-detached houses
- Bungalows or detached houses
Landed homes in Sentosa Cove are an exception, as foreign buyers (including PRs) can apply for approval more easily compared to mainland properties.
2. Eligibility Criteria for PRs
To qualify for purchasing landed properties as a PR, you must meet the following criteria:
- Have been a PR for at least five years
- Demonstrate significant economic contribution (e.g., through employment, investments, or business ownership in Singapore)
- Intend to use the property as a personal residence (not for rental or speculation)
Each application is reviewed on a case-by-case basis, and approval is not guaranteed. Working with property experts and legal advisors can help smoothen the application process.
3. Types of Landed Properties PRs Can Buy
Even if a PR looking to buy landed property eventually gains SLA approval, additional conditions apply. Some key points to consider:
- PRs cannot buy landed homes in GCB (Good Class Bungalow) areas.
- Some areas with historical or conservation value may have additional restrictions.
- PRs must commit to holding the property long-term, as resale options are limited
For those interested in building or upgrading their landed homes, engaging a reliable contractor or an addition and alteration (A&A) contractor in Singapore ensures compliance with local building regulations and smooth project execution.
4. The Role of the Singapore Land Authority (SLA)
The SLA oversees and regulates the ownership of landed property by PRs. When applying to buy landed properties for PRs, applicants must:
- Submit an official application to SLA, stating their eligibility and economic contributions.
- Provide supporting documents, such as proof of income, employment, and long-term residency.
- Await SLA’s decision, which may take several months.
If approved, PRs can proceed with their purchase, but they must comply with the conditions set by SLA, including a restriction on using the property for rental purposes.
5. Considerations for Long-Term Investment
Beyond obtaining SLA approval, PRs looking to buy landed property should evaluate if it is a good long-term housing investment. Some key considerations include:
- Resale restrictions: Selling the property in the future may be challenging, as only eligible buyers (Singapore citizens or PRs with SLA approval) can purchase it.
- Property value appreciation: While landed homes typically increase in value over time, PR-specific restrictions may affect market demand.
- Renovation and maintenance: Expanding or rebuilding requires hiring a design-and-build expert or a reliable A&A contractor in Singapore to ensure compliance with housing laws.
Ultimately, it is entirely possible for PRs to buy landed property in Singapore, but it comes with restrictions. Understanding housing restrictions for PRs, eligibility criteria, and long-term investment factors is crucial before making a decision.
If you are eventually successful in your application and can proceed to buy a landed home, the next step is to ensure that the existing or new home is in order. To do that, consider engaging a trusted building contractor in Singapore, like Colebuild.
With over 15 years of experience in custom home design and landed property redevelopment, we have helped numerous clients from all walks of life realise their dream landed home through our design-and-build, as well as A&A expertise. Whether you need assistance with a new build, extensions, or renovations, our team ensures quality craftsmanship and compliance with regulations.
For more information about our services, please contact us today.
