Sale of Non-Landed Property to Foreigners

Mr Zaqy Mohamad asked the Minister for National Development (a) whether the Ministry will consider curbing speculation on non-landed private property by tightening the criteria on the sale of non-landed private property to foreigners; (b) whether the Ministry will consider allowing only foreigners residing in Singapore to purchase non-landed private housing; and (c) whether there is any correlation between prices of non-landed private property and prices of public and other private housing in Singapore.

Mr Khaw Boon Wan: Public, landed and non-landed private housing are distinct segments of our residential property market but they are inter-linked. There is some correlation in their price movements but the extents differ.

For example, over the past three years, resale HDB prices have increased by 34%. The corresponding figures for landed and non-landed private houses are 55% and 20% respectively.

While we need to cater to different population groups, we are clear that the housing needs of citizens come first. We have restrictions on foreign buying of landed properties given the limited land area in Singapore. Public housing, both new and resale flats, is reserved primarily for Singaporeans. Permanent Residents (PR) are only allowed to purchase resale HDB flats.

We have not imposed restrictions on foreign buying for non-landed private housing. Whether we should is a subject that requires careful study. As I have explained in the House last month, foreign buying is not the only factor contributing to rising prices in non-landed private housing.

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The Government will provide an adequate supply of land to give Singaporeans opportunities to own non-landed private housing. This year, we have released over 14,500 units worth of non-landed private housing under our Government Land Sales programme. There are still 39,000 unsold units out in the market, equivalent to more than two years of demand.

Our property cooling measures have also moderated the rate of price increase and curbed short-term speculation in non-private land housing. Price increases for private housing have been trending down for eight consecutive quarters to 1.3% in 3Q2011 from the previous quarter. The overall number of sub-sales, which is a proxy of property speculation, has remained low.

We are monitoring market conditions closely. We are prepared to introduce further measures if needed to ensure a sustainable and stable property market. However, we have to be careful not to precipitate a loss of confidence, especially with the international backdrop of uncertainty in financial markets and weak growth in the US and Europe.