ST Forum: HOME > ST FORUM > STORY: Aug 4, 2011
PROTECTING CITIZENS: Adopt Aussie housing rules
I WAS immensely glad and relieved to read the letters last Saturday ('Entitlement' by Mr Huang Yangxuan, 'Protect citizens' by Madam Koh Chin Chin and 'Not quite a joke' by Mr Alexs Chua) rebutting Mr Frankie Mao's proposition to lift the ban on foreign purchases of landed property ('Landed home values stifled by property law'; July 27).
To elaborate on a point made by Madam Koh, Australia safeguards the interests of Australians through a clever mechanism: Foreigners are permitted to purchase only new properties that are not pre-owned. This policy has the twin effects of inviting foreigners to contribute capital and enlarging the pool of private housing in Australia for reasonable rental and capital gain.
Restricting the resale of pre-owned property to Australians prevents runaway price inflation fuelled by the inflow of foreign wealth, which would make such homes too expensive for average Australians.
Applying the Australian policy to non-landed private property in Singapore, including condominiums, would go a considerable way towards narrowing the perceived anomaly between landed and non-landed property, cool en bloc fever and make private condominiums more affordable for citizens.
The policy would also reduce the cost of living and rentals, thereby helping to contain the cost of doing business here.
The only people who may not be happy are property developers profiting on the backs of the housing debt burden of Singaporeans.
Is there any reason for the Government not to adopt a similar policy to safeguard the interests of citizens?
Gan Boey Keow
http://www.straitstimes.com/STForum/Story/STIStory_698181.html
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13Aug2011: PRICE AND INCOME GAP (Beware housing debt bomb)
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