Housing matters: Understanding more about housing options in Singapore.

Housing matters: Understanding more about housing options in Singapore.
Housing Matters

Understanding more about housing options in Singapore.


1. I have seen the term "Landed Home" when referring to rental property in Singapore - what does it mean ?

"Landed Home" is the term usually used for houses with a garden. To Singapore realtors, this can mean a Terrace, Semi-Detached or a detached house (Bungalow). All three types refer to a landed house. They usually range from 2 storeys to 3 storeys high. Landed houses can comprise of 99 years lease, 999 years lease and Freehold tenure.


2. Can a foreigner or permanent resident buy a property in Singapore?

Foreigners are allowed to purchase condominiums and apartments in Singapore.

Some restricted property such as vacant land, landed properties such as bungalows, semi-detached and terrace houses, require prior approval before a purchase. Landed properties is a special class of residential property that Singaporeans aspire to own, and as such, remain restricted. Foreigners need to apply for approval from Singapore Land Authority before buying. For more details on application, visit the SLA website. Every application is considered on its merits. The main criteria are whether you are a permanent resident of Singapore and your economic contribution to Singapore.


3. Should I use one property agent or engage many agents?

Using only one agent will save you time and hassle as the agent would have a better understanding of your requirements after the first appointment. Also, you will avoid the embarassing and potentially time wasting scenario where different agents show you the same property. It is professionally more ethical and fair to both parties too when you engage one agent who works for your interests and can be assured that their efforts will not be in vain. When you engage several agents, usually they will not feel a commitment to work in your best interests as each may know that you are also working with others at the same time.


4. Ok. I have found a suitable apartment or house. What is next?

Inform your realtor of your interest. Thereafter, the realtor will prepare a Letter of Intent, stating your interest, rental amount and specific terms. After you have signed, the realtor will pass it to the rightful landlord together with one month rent (For 1 year's lease) as good faith deposit.

Thereafter, the landlord will prepare a Tenancy Agreement. Do read through the Tenancy Agreement carefully. Make sure that the diplomatic clause is included. Please note that most landlords will only include the diplomatic clause if the lease is more than a year.


5. What is a diplomatic clause?

A diplomatic clause in a typical Tenancy Agreement will look like:

Notwithstanding anything herein contained, if at any time after the expiration of TWELVE (12) months from the date of the commencement of this tenancy, the immediate occupant of the said premises, YOUR NAME shall be transferred out of the Republic of Singapore permanently by his firm, ceased to be employed the company or if for any cause whatsoever he shall be ordered to leave the Republic of Singapore, then and in such a case, it shall be lawful for the Tenant to determine this tenancy by giving not less than TWO ( 2 ) months' advance notice (this is in addition to the TWELVE (12) months aforesaid) in writing to the Landlord or by paying TWO ( 2 ) months' rent in lieu of such notice. Documentary evidence of such transfer, cessation or order shall be required and such notice shall be deemed to have commenced on such date as the Landlord shall have actually received such evidence.

This clause is to safe guard you if in the event you are no longer employed, you can terminate the lease after 12 months by giving 2 months notice. Thereafter, the security deposit will be refunded to you and there shall be no further claims by either party.