Landed home values stifled by property law

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Jul 27, 2011
Landed home values stifled by property law
LANDED properties have been mispriced for a long time because of the Residential Property Act. The Act, which was gazetted to safeguard land ownership for citizens, has unfortunately penalised many landed property owners like me who are not speculators.
We bought landed homes planning to live in them until our children grew up and moved out. A landed property is a testament to our stake in the country. We take pride in what we own as it is also a reflection of our hard work and success. However, it disturbs me to see many retiring home owners selling their old landed properties at undervalued prices because of the restrictions imposed by the Act. The reality is that it is the foreigners who are willing to buy landed homes because they know of the potential of these gems.
The property transactions obtained from the Urban Redevelopment Authority website shockingly revealed that a number of such properties were sold at valuations much lower than that of a neighbouring 99-year-old condominium.
It is small comfort for retirees who own landed homes to know that while they may be land owners, the property is worth less than a leasehold apartment. Furthermore, this inequality of land pricing has led to many small developers buying old properties, rebuilding them and selling them at much higher prices.
The National Development Minister must also take care of the interests of this minority of landed-property owners. Don't let us be marginalised because of the need to protect the majority.
It is time to review the outdated Act and allow landed properties to be transacted just like any other private property.
Protect the home ownership of Singaporeans by regulating public housing and not private housing.
Frankie Mao
http://www.straitstimes.com/STForum/Story/STIStory_695137.html

Add note:
Pls note that Mr F Mao, in his letter 'Open private housing market to competition' revealed: "In March 2009, I bought my first landed property after much planning, budgeting and saving. I am sure many, too, have benefited from the upswing in the property market, thanks to government efforts in branding Singapore superbly. The irony is that there are many Singaporeans who speculate and own several condominium apartments, but will not purchase a landed property because of poorer valuations due to the restrictions."

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This post was responded to by:
30July2011: Entitlement; Not quite a joke; Protect citizens
04Aug2011: PROTECTING CITIZENS (Adopt Aussie housing rules)
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