Debate continues over foreign ownership

According to a poll by PropertyGuru, approximately 66 percent of Singaporeans are totally against foreigners buying landed homes in Singapore.

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.

However, foreigners who wish to own landed homes are of a different classification as they are high net worth investors who can add value to our economy.

Therefore, we need to view this issue in perspective.

Strict ownership criteria for foreigners
In Singapore, a foreigner cannot acquire or purchase restricted properties unless he or she has obtained prior approval from the Ministry of Law.

Such properties include a vacant land parcel zoned residential and landed properties (detached, semi-detached, terrace, linked and townhouses, units in a cluster housing project and shophouses which have been zoned residential).

In addition, a foreigner cannot own all the units in a condominium without prior approval of the ministry.

Foreigners who wish to purchase such restricted properties will need to fulfill certain criteria.

They include using the landed property for their own use as a dwelling house, must be a permanent resident (PR), must have a huge economic benefit, possess academic, professional or technical qualifications that are sought after by the government, possess the expertise and working experience, and must own investments in the type of industry or service sector needed by the government.

In addition, they cannot sell the property within three years and cannot own land exceeding 15,000 sq ft.

Sentosa Cove an exception
The only exception is on Sentosa Cove where foreigners do not have to be PRs in order to buy both land parcels and completed bungalows.

In addition, there is no Minimum Occupation Period (MOP) imposed.

They would, however, still 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, 60 percent of its residents are foreigners while the rest are locals.

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 in Singapore.

I believe this is a fair rule to continue making Singapore attractive to 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.