STRICTER MEASURES TO CURB FOREIGN PROPERTY SPECULATORS
Nov 24, 2010
Members of Parliament have approved harsher penalties for foreign property speculators, but asked the government to crack down even more.
MPs noted that home ownership is a big issue for many Singaporeans, and further measures to restrict foreigners in the local market should be implemented.
This issue came up during a debate over the proposed changes involving foreign ownership of landed homes. Only citizens and permanent residents (PRs) who make significant contributions to the economy can own landed property. PRs can only own one such property and must live in it for at least three years before looking to sell it.
As for foreign developers, they can acquire land to build residential projects, but it must be completed in 5 years. To prevent hoarding, all units must be sold within two years after receiving the temporary occupancy permit.
If the conditions are not met, the government will forfeit their banker's guarantee pegged at 10 percent of the land price. However, with the new law, an extension charge will also be imposed for the extended time taken in the project’s completion period.
Info courtesy: Propertyguru
