Refinements to list of non-residential properties under Residential Property Act 1976 as set out in Residential Property Notification

26 July 2023

On 19 July 2023, the Ministry of Law (“MinLaw”) and the Singapore Land Authority (“SLA”) jointly announced that the list of non-residential properties under the Residential Property Act 1976 (“RPA”) as set out in the Schedule to the Residential Property Notification (“Schedule”) would be refined by updating the list of land use zones that have been designated as non-residential property. The changes to the Schedule took effect on 20 July 2023, 0000 hours.

The changes to the Schedule are as follows:

  • The following uses have been added to the Schedule:
    • Business 1
    • Business 2
    • Business 1 - White
    • Business 2 - White
    • Commercial/Institution
    • Reserve Site
    • Special Use
  • The following uses have been removed from the Schedule:
    • Commercial & Residential
    • General Industry
    • Light Industry
    • Warehouse
    • Railway
    • Light Rail Transit
    • Telecommunication
  • The following uses have been amended:
    • “Mass Rapid Transit” renamed as “Rapid Transit”
    • “Park and Gardens” renamed as “Park”

The update is part of the regular review of the RPA to ensure the land use zones listed in the Schedule are up to date with the prevailing zoning terminology used by the Urban Redevelopment Authority, and to ensure that the land use zones predominantly permitted for residential use are regulated under the RPA.

Effect of removal of “Commercial & Residential” zone from Schedule

New acquisitions

With the removal of the “Commercial & Residential” zone from the Schedule, foreign persons (both entities and individuals), as defined under the RPA, who intend to purchase or acquire an interest in land zoned or property permitted for “Commercial & Residential” use will need to apply for approval under the RPA.

Existing owners

Foreign persons, as defined in the RPA, who are existing owners of land zoned or property permitted for “Commercial & Residential” use are exempted from obtaining approval under the RPA if they retain the property as-is.

Approval under the RPA will be required if the foreign person redevelops the property unless the exemptions below apply.

Transition period

Foreign persons intending to purchase or acquire interests in land zoned or property permitted for “Commercial & Residential” use may be exempted from obtaining approval under the RPA if all of the following conditions are met:

  • The option to purchase (“OTP”) was granted by sellers to potential buyers before 20 July 2023;
  • This OTP is exercised on or before 9 August 2023; and
  • This OTP has not been varied on or after 20 July 2023.

Exemptions

Section 2 of the Residential Property (Retention of Commercial and Residential Land - Exemption) Notification 2023 lists two exemptions where foreign persons will not be required to obtain approval under the RPA:

  • Where a foreign person is, immediately before 20 July 2023, the owner of an estate or interest in any land that, as at the date:

(a) is zoned under the Master Plan as “Commercial & Residential”; or

(b) is permitted to be used (other than for temporary use) pursuant to the Planning Act 1998 (“PA”) or any other written law for commercial and residential purposes, consistent with land zoned as “Commercial & Residential”; and

he desires to retain that estate or interest in the land on or after that date.

  • For a transfer, purchase or acquisition on or after 20 July 2023 by a foreign person of any estate or interest in any land that, as at the date of the transfer, purchase or acquisition, is zoned under the Master Plan as “Commercial & Residential” or permitted to be used (other than for temporary use) pursuant to the PA or any other written law for commercial and residential purposes, consistent with land zoned as “Commercial & Residential”, if the transfer, purchase or acquisition:

(a) is pursuant to an option to purchase the land that was:

(i) granted before 20 July 2023;

(ii) exercised not later than 9 August 2023; and

(iii) not varied on or after 20 July 2023;

(b) is pursuant to any other agreement for the sale and purchase of the land that was entered into before 20 July 2023; or

(c) resulted from any estate or interest in the land:

(i) passing by bequest, succession or inheritance to the foreign person who is beneficially entitled under a will or under any written law governing intestate succession to an estate or interest in the land; or

(ii) passing to a foreign person who is a legal personal representative to whom probate or letters of administration are granted in respect of the land,

where the deceased person died before 20 July 2023.

These two exemptions cease to apply to a foreign person in respect of any land, on the earlier of the following dates:

  • the date the foreign person obtains a written permission granted under the PA to develop the land, that resulted from an application for the written permission submitted on or after 20 July 2023;
  • the date the foreign person develops, or permits development of, the land, otherwise than pursuant to a written permission granted under the PA that resulted from an application for the written permission submitted before 20 July 2023.

The SLA has published the “Residential Property (Amendment) Notification 2023 and Residential Property (Exemption for Retention of Commercial and Residential Land) Notification - 20 July 2023 Q&As” providing guidance in various scenarios.

Acquisition of strata units in development on land zoned “Commercial and Residential”

For the avoidance of doubt, foreign persons can acquire one or more strata units (but not all the strata units) comprised in developments constructed / to be constructed on land zoned “Commercial and Residential” without obtaining approval under the RPA.

Reference materials

The following materials are available on Singapore Statutes Online sso.agc.gov.sg and the websites of the Ministry of Law www.mlaw.gov.sg and the Singapore Land Authority www.sla.gov.sg: