RES exam question on Real Estate Market: Mr Kwan, a Malaysian national who has been a Singapore Permanent Resident for six years…
Mr Kwan, a Malaysian national who has been a Singapore Permanent Resident for six years, wants to buy a landed house on a 1,200 sq m (about 12,900 sq ft) plot in Bukit Timah, outside any Good Class Bungalow Area, to live in with his family. His salesperson explains the approval process. (i) Since he is a Singapore Permanent Resident, he counts as a foreign person and needs LDAU approval before buying. (ii) His plot size and years as a permanent resident both fall within the criteria LDAU weighs in deciding. (iii) Once approval is granted, he may let the house out if his family later moves overseas. (iv) Since approval is not guaranteed, his offer should be made conditional on LDAU approval. Which is/are correct?
- A(i) and (ii) only
- B(i), (ii) and (iv) only
- C(i), (iii) and (iv) only
- D(ii), (iii) and (iv) only
Show answer & explanation
Answer
B. (i), (ii) and (iv) only
Explanation
Answer: (i), (ii) and (iv) only. A PR needs LDAU approval to buy landed property, and that approval is for owner-occupation only, a condition that continues afterwards.(i) True. Under the Residential Property Act a Singapore Permanent Resident is a foreign person, and landed property is restricted.(ii) True. Six years exceeds five, and 1,200 sq m (about 12,900 sq ft) is within 15,000 sq ft, though approval still depends on the whole assessment.(iv) True. Approval is not guaranteed, so any offer should be conditional on it.Watch out: 1,800 sq m is the separate Sentosa Cove limit, not the mainland plot test.Rule: A foreign person, including a PR, needs prior approval from SLA's Land Dealings (Approval) Unit to buy landed property. LDAU weighs permanent residence of at least 5 years, an exceptional economic contribution and, on the mainland, a plot of generally not more than 15,000 sq ft outside a Good Class Bungalow Area.Source: Residential Property Act; SLA LDAU FAQ, read 1 Oct 2026; RESPrep /learn/foreign-ownership-residential-property-act, current at 1 Oct 2026
Why the other options are wrong
- (iii) False. Approval is for owner-occupation only. The property cannot be bought to rent out, and that condition outlasts the approval.
Study the concept behind this question: The Property Market & Government Intervention (Singapore)
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