OWNERSHIP OF RESIDENTIAL PROPERTIES (Relaxation of restrictions)

Mr Ng Kah Ting asked the Minister for Finance whether he will consider relaxing the restrictions imposed on ownership of residential properties under the Residential Property Act with a view to activating the sluggish market in the private housing development sector and encouraging the development of this sector of the economy.

The Acting Minister for Finance (Mr Lim Kim San): Mr Speaker, Sir, the sluggish market in private housing development at present is largely due to over-building in the early 1970's. This is the result of the euphoria created by the boom conditions prevailing then. With the world economy still growing at a slow pace, boom conditions in residential property are unlikely to come for many years. As far as the construction industry is concerned, the public sector is taking up the present slack. While the building programme of the Housing and Development Board continues unabated, the Urban Redevelopment Authority will continue to tender out cleared sites for suitable commercial development. There is therefore no lack of jobs for Singaporeans who are prepared to work in the construction industry.

The restrictions imposed on ownership of residential properties have already been relaxed. Under the Residential Property Act, non-citizens can now freely purchase flats in buildings of 6-storeys or more, or purchase units in approved condominiums. In addition, non-citizens, permanent residents and foreign companies making an economic contribution to Singapore, are normally granted permission under the Residential Property Act to purchase residential property within a land area of not more than 15,000 sq. ft. for their own occupation. These relaxations are more than adequate for a non-citizen who wishes to own residential property in Singapore.