MPs raise concerns over rising property prices

SINGAPORE: Several Members of Parliament raised concerns over rising property prices and competition with foreign investments.

They suggested the government look to existing policy frameworks in other countries as examples of how to curb foreign speculation of property.

Mr Christopher De Souza, MP for Holland—Bukit Timah GRC, said: "In Australia, all acquisitions of residential real estate by foreign interest require prior foreign investment approval.

"The Australian model essentially allows foreigners to buy new developments while restricting their subsequent sale to Australian residents at a price they can reasonably afford. We can institute this double prevention model in Singapore as it both tempers investment demand and restricts the resale incentive."

Mr R Dhinakaran, Nominated MP, said: "I will also like to point the attention towards measures in larger land rich neighbouring country Malaysia, where properties below 500,000 ringgits are reserved for Malaysians only.

"This ensures the quantum of monies competing for normal houses is not unlimited. In other words, it is a competition of equals at least in some way. Further, to avoid foreigners from speculating we could impose rules to ensure foreigner buying a property cannot avail any loan from banks in Singapore. This would mean leveraging will not fuel in speculation in the property sector."

— CNA/de