Approximately 66 percent of Singaporeans polled by PropertyGuru said they are against foreigners buying landed homes in Singapore.
According to Khalil Adis, a property expert and regular contributor to PropertyGuru, the “strong views against foreign ownership is not surprising as the government has, over the past few years, relaxed immigration laws to welcome foreigners.”
“The concept of foreigners owning landed homes in Singapore is very much tied to national and political issues.”
“Owning a piece of Singapore is a privilege, which I believe used to be bestowed upon Singaporeans only,” he said.
However, Khalil noted that foreigners who wish to own landed homes are of a different classification in that they are high net worth investors who can add value to the economy.
“Therefore, we need to view this issue in perspective,” he said.
In Singapore, foreigners cannot purchase restricted properties such as detached, semi-detached, terrace, linked and townhouses, units in a cluster housing project and shophouses which have been zoned as residential, as well as condo units, unless they gain approval from the Ministry of Law.
Foreigners who wish to purchase such restricted properties will need to fulfill certain criteria, including the use of the landed property as their personal residence, get permanent resident (PR) status, bring significant economic benefit, academic, professional or technical qualifications sought after by the government, relevant working experience and must own investments in the type of industry or service sector needed by the government.
Foreigners also cannot “sell the property within three years and cannot own land exceeding 15,000 sq ft,” said Khalil.
Sentosa Cove is the only area where foreigners do not have to be PRs in order to acquire land parcels and completed bungalows. There is also no Minimum Occupation Period (MOP) imposed.
However, they will need to seek approval from the Land Dealings (Approval) Unit (LDU) where they will be given express approval within two days instead of the usual six weeks.
To date, nearly 60 percent of residents at Sentosa Cove are foreigners.
“Whether buying on Sentosa Cove or the main island, the property must be owner-occupied and the foreign owner is only allowed to have one restricted residential property.”
Khalil believes this is a fair rule, so that Singapore will continue to attract high net worth foreign investors.
“However, our government also needs to show more sensitivity to Singaporeans’ feelings, especially after its worst election showing in history where the issue of foreign talent in Singapore dominated,” he added.
To contact the journalist, you may send your message to editor@propertyguru.com.sg