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What you need to know about private lease schemes

The Edge Singapore
The Edge Singapore  • 6 min read
What you need to know about private lease schemes
Medini Iskandar, one of the few places with private lease schemes
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Are you aware of the differences in property titles? Purchasers of residential units in Johor’s Medini region in 2013 and 2014 are likely to have been caught off guard by different wording in their sale and purchase agreements (SPA). This is particularly relevant for Singaporeans keen to relook at Johor, given the excitement around the Johor-Singapore Special Economic Zone (JS-SEZ) and the upcoming rapid transit system (RTS) in 2026.

Notably, some residential properties in Medini, an area within Iskandar Puteri in Johor, were sold in 2013 and 2014 as private lease schemes and not as 99-year leasehold condominiums, as some Singapore-based media reported.

The main difference between private lease schemes (PLS) and 99-year leasehold condominium units is that holders of PLS do not have ownership rights. For instance, many in Singapore would be familiar with the management corporation strata title (MCST). An owner of a Singapore 99-year leasehold condominium would own a certain share value in the MCST, which entitles the owner to certain rights, such as selling the unit or, at some point, joining in a collective sale of the land on which the property stands. The owner would also have responsibilities such as paying property tax and management fees for the managing agent to take care of the common areas.

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