Low number of approvals for foreigners to buy landed homes on Singapore mainland: Indranee

THE government approved 34 applications by permanent residents (PRs) seeking to buy landed homes on the Singapore mainland last year, said Indranee Rajah, Second Minister for National Development, in Parliament on Tuesday (Oct 3).

This number was down from 51 in 2021, but up from 24 in 2020, and excludes approvals for purchases on Sentosa Island.

Indranee said the number is “low” when contrasted with the total landed housing stock of more than 73,000 properties, and the average annual transaction volume of more than 2,700 landed properties on Singapore mainland over the same period.

She gave these numbers in a ministerial statement responding to questions raised by Members of Parliament about Singapore’s anti-money laundering regime.

Under the Residential Property Act, foreigners are required to apply to the Singapore Land Authority (SLA) for approval to buy any landed residential property.

Prohibition of disposal orders have been issued for 152 properties as part of the S$2.8 billion money-laundering case. Of these, eight are landed residential properties in Sentosa Cove.

Indranee said: “Sentosa Cove was developed as a unique world-class integrated waterfront development aimed at international clientele. Hence, foreigners who are non PRs may acquire landed residential properties in Sentosa Cove and approvals are generally granted.”

In the past three years, SLA received a total of 88 applications from foreigners to purchase landed properties in Sentosa Cove. All but two have been approved.

She added that the proportion of foreign property purchases is low, at about 2 per cent.

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In her ministerial statement, Indranee also detailed the anti-money laundering measures currently in place in the real estate sector, as well as the role that property agents, conveyancing lawyers and developers have to play.

She noted that as part of ensuring compliance, the Council for Estate Agencies and the Urban Redevelopment Authority conduct anti-money laundering inspections regularly.

“Property agents, agencies and developers that are identified to be of higher risk are prioritised for inspections and subject to more regular inspections. For example, those who deal more in private housing, especially higher-end projects, could be considered high-risk.”

Indranee added that in nearly all property transactions, professionals such as conveyancing lawyers and accountants also have anti-money laundering obligations.

Landlords, too, if they have reasonable grounds to suspect their tenants, are required to file a Suspicious Transaction Report (STR).

“Failure to file such STRs as soon as reasonably practicable is an offence.”

The Council for Estate Agencies is developing a one-stop resource webpage to make it easier for the industry to retrieve information on anti-money laundering requirements.